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. That said, here is one low-volatility stock providing safe-and-steady growth and two that may not deliver the returns you need.

Two Consumer DiscretionaryStocks to Sell:

Charter (CHTR)

Rolling One-Year Beta: 0.73

Operating as Spectrum, Charter (NASDAQ: CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.

Why Do We Think Twice About CHTR?

1. Number of internet subscribers has disappointed over the past two years, indicating weak demand for its offerings
2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
3. ROIC of 9.6% reflects management’s challenges in identifying attractive investment opportunities

Charter is trading at $391.09 per share, or 10.2x forward P/E. Read our free research report to see why you should think twice about including CHTR in your portfolio.

Somnigroup (SGI)

Rolling One-Year Beta: 0.88

Established through the merger of Tempur-Pedic and Sealy in 2012, Somnigroup (NYSE: SGI) is a bedding manufacturer known for its innovative memory foam mattresses and sleep products

Why Does SGI Fall Short?

1. Lackluster 4.6% annual revenue growth over the last two years indicates the company is losing ground to competitors
2. Waning returns on capital imply its previous profit engines are losing steam
3. High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Somnigroup’s stock price of $65.84 implies a valuation ratio of 22.9x forward P/E. Dive into our free research report to see why there are better opportunities than SGI.

One Consumer Discretionary Stock to Watch:

Grand Canyon Education (LOPE)

Rolling One-Year Beta: 0.89

Founded in 1949, Grand Canyon Education (NASDAQ: LOPE) is an educational services provider known for its operation at Grand Canyon University.

Why Do We Like LOPE?

1. Excellent operating margin of 26.5% highlights the efficiency of its business model
2. ROIC punches in at 30.2%, illustrating management’s expertise in identifying profitable investments, and its returns are growing as it capitalizes on even better market opportunities

At $185.13 per share, Grand Canyon Education trades at 20.8x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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