1 Safe-and-Steady Stock Worth Investigating and 2 We Find Risky

July 29, 2025 at 00:46 AM EDT

DCI Cover Image

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 that may not deliver the returns you need.

Two Stocks to Sell:

Donaldson (DCI)

Rolling One-Year Beta: 0.87

Playing a vital role in the historic Apollo 11 mission, Donaldson (NYSE: DCI) manufacturers and sells filtration equipment for various industries.

Why Are We Hesitant About DCI?

Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
Estimated sales growth of 2.9% for the next 12 months is soft and implies weaker demand
Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.5 percentage points

Donaldson’s stock price of $72.03 implies a valuation ratio of 48.4x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than DCI.

UFP Industries (UFPI)

Rolling One-Year Beta: 0.86

Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ: UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.

Why Are We Wary of UFPI?

Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
Eroding returns on capital suggest its historical profit centers are aging

At $101 per share, UFP Industries trades at 16.2x forward P/E. Check out our free in-depth research report to learn more about why UFPI doesn’t pass our bar.

One Stock to Watch:

Globus Medical (GMED)

Rolling One-Year Beta: 0.78

With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE: GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.

Why Are We Fans of GMED?

Constant currency growth averaged 61.4% over the past two years, showing it can expand globally regardless of the macroeconomic environment
Market share will likely rise over the next 12 months as its expected revenue growth of 18.1% is robust
Earnings per share grew by 13.8% annually over the last five years, massively outpacing its peers

Globus Medical is trading at $54.30 per share, or 15.3x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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