Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo.

Two Stocks to Sell:

Noodles (NDLS)

Rolling One-Year Beta: 0.79

Offering pasta, mac and cheese, pad thai, and more, Noodles & Company (NASDAQ: NDLS) is a casual restaurant chain that serves all manner of noodles from around the world.

Why Do We Steer Clear of NDLS?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

Noodles is trading at $0.89 per share, or 1.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including NDLS in your portfolio.

Choice Hotels (CHH)

Rolling One-Year Beta: 0.63

With almost 100% of its properties under franchise agreements, Choice Hotels (NYSE: CHH) is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion.

Why Are We Out on CHH?

1. Softer revenue per room over the past two years suggests it might have to invest in new amenities such as restaurants and bars to attract customers
2. Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $131.13 per share, Choice Hotels trades at 18.7x forward P/E. To fully understand why you should be careful with CHH, check out our full research report (it’s free).

One Stock to Watch:

First Financial Bancorp (FFBC)

Rolling One-Year Beta: 0.88

Tracing its roots back to 1863 during the Civil War era, First Financial Bancorp (NASDAQ: FFBC) is a bank holding company that provides commercial banking, lending, deposit services, and wealth management to individuals and businesses.

Why Could FFBC Be a Winner?

1. Balance sheet strength has increased this cycle as its 16.8% annual tangible book value per share growth over the last two years was exceptional
2. Estimated tangible book value per share growth of 12.6% for the next 12 months implies its capital momentum over the last two years will continue
3. Industry-leading 9.8% return on equity demonstrates management’s skill in finding high-return investments

First Financial Bancorp’s stock price of $24.92 implies a valuation ratio of 0.9x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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