A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.

Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two that may not keep up.

Two Stocks to Sell:

Hershey (HSY)

Rolling One-Year Beta: -0.04

Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.

Why Does HSY Fall Short?

1. Falling unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4.4 percentage points
3. Flat earnings per share over the last three years underperformed the sector average

Hershey’s stock price of $180.33 implies a valuation ratio of 31.8x forward P/E. Check out our free in-depth research report to learn more about why HSY doesn’t pass our bar.

Wyndham (WH)

Rolling One-Year Beta: 0.94

Established in 1981, Wyndham (NYSE: WH) is a global hotel franchising company with over 9,000 hotels across nearly 95 countries on six continents.

Why Does WH Worry Us?

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. Projected sales growth of 4% for the next 12 months suggests sluggish demand
3. Underwhelming 11.4% return on capital reflects management’s difficulties in finding profitable growth opportunities

Wyndham is trading at $91.10 per share, or 18.4x forward P/E. To fully understand why you should be careful with WH, check out our full research report (it’s free).

One Stock to Watch:

Sprouts (SFM)

Rolling One-Year Beta: 0.76

Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ: SFM) is a grocery store chain emphasizing natural and organic products.

Why Is SFM Interesting?

1. Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
2. Comparable store sales rose by 7.5% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
3. Exciting sales outlook for the upcoming 12 months calls for 11.7% growth, an acceleration from its six-year trend

At $146.38 per share, Sprouts trades at 27.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum 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-small-cap company Comfort Systems (+782% 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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