1 Safe-and-Steady Stock to Keep an Eye On and 2 to Keep Off Your Radar

StockStory
05-02
1 Safe-and-Steady Stock to Keep an Eye On and 2 to Keep Off Your Radar

Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.

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

Two Stocks to Sell:

La-Z-Boy (LZB)

Rolling One-Year Beta: 0.57

The prized possession of every mancave, La-Z-Boy (NYSE:LZB) is a furniture company specializing in recliners, sofas, and seats.

Why Do We Think LZB Will Underperform?

  1. Annual sales declines of 8% for the past two years show its products and services struggled to connect with the market
  2. Estimated sales growth of 1.8% for the next 12 months is soft and implies weaker demand
  3. Waning returns on capital imply its previous profit engines are losing steam

At $39.94 per share, La-Z-Boy trades at 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than LZB.

GXO Logistics (GXO)

Rolling One-Year Beta: 0.94

With notable customers such as Nike and Apple, GXO (NYSE:GXO) manages outsourced supply chains and warehousing for various companies.

Why Does GXO Give Us Pause?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Flat earnings per share over the last two years underperformed the sector average
  3. 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

GXO Logistics’s stock price of $36.17 implies a valuation ratio of 11.9x forward P/E. To fully understand why you should be careful with GXO, check out our full research report (it’s free).

One Stock to Watch:

Republic Services (RSG)

Rolling One-Year Beta: 0.37

Processing several million tons of recyclables annually, Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities.

Why Should RSG Be on Your Watchlist?

  1. Annual revenue growth of 9.3% over the last five years beat the sector average and underscores the unique value of its offerings
  2. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 18.6%, and its operating leverage amplified its profits over the last five years
  3. RSG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Republic Services is trading at $250.99 per share, or 35.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks That Overcame Trump’s 2018 Tariffs

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

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