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.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need.
Two Stocks to Sell:
Greenbrier (GBX)
Rolling One-Year Beta: 0.67
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.
Why Are We Out on GBX?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.7% annually over the last two years
- Gross margin of 13.3% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 12 percentage points
At $44.84 per share, Greenbrier trades at 6.6x forward EV-to-EBITDA. If you’re considering GBX for your portfolio, see our FREE research report to learn more.
Bristol-Myers Squibb (BMY)
Rolling One-Year Beta: 0.07
With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE:BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.
Why Are We Wary of BMY?
- Annual sales growth of 1.9% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Sales are projected to tank by 4.4% over the next 12 months as demand evaporates
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Bristol-Myers Squibb’s stock price of $46.90 implies a valuation ratio of 7.1x forward P/E. To fully understand why you should be careful with BMY, check out our full research report (it’s free).
One Stock to Buy:
Texas Roadhouse (TXRH)
Rolling One-Year Beta: 0.48
With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.
Why Will TXRH Outperform?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its rising returns show it’s making even more lucrative bets
Texas Roadhouse is trading at $186.54 per share, or 26.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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.