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.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. 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:
Simply Good Foods (SMPL)
Rolling One-Year Beta: 0.71
Best known for its Atkins brand that was inspired by the popular diet of the same name, Simply Good Foods (NASDAQ: SMPL) is a packaged food company whose offerings help customers achieve their healthy eating or weight loss goals.
Why Are We Cautious About SMPL?
- Modest revenue base of $1.45 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
- 4.9 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position
Simply Good Foods’s stock price of $20.91 implies a valuation ratio of 10.4x forward P/E. Dive into our free research report to see why there are better opportunities than SMPL.
Builders FirstSource (BLDR)
Rolling One-Year Beta: 0.93
Headquartered in Irving, TX, Builders FirstSource (NYSE: BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.
Why Are We Hesitant About BLDR?
- Annual sales declines of 7.2% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share have dipped by 22.1% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $123.90 per share, Builders FirstSource trades at 19.8x forward P/E. If you’re considering BLDR for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Wingstop (WING)
Rolling One-Year Beta: 0.91
The passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ: WING) is a popular fast-food chain known for its flavorful and crispy chicken wings offered in a variety of sauces and seasonings.
Why Will WING Beat the Market?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Average same-store sales growth of 14.6% over the past two years indicates its restaurants are resonating with diners
- Healthy operating margin of 25.5% shows it’s a well-run company with efficient processes
Wingstop is trading at $259.14 per share, or 59.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
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 5 Growth Stocks for this month. 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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