Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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 stuck in limbo.
Two Stocks to Sell:
The New York Times (NYT)
Rolling One-Year Beta: 0.52
Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
Why Does NYT Fall Short?
- Demand for its offerings was relatively low as its number of subscribers has underwhelmed
- Projected sales growth of 6.7% for the next 12 months suggests sluggish demand
- Diminishing returns on capital suggest its earlier profit pools are drying up
The New York Times’s stock price of $55.64 implies a valuation ratio of 25.9x forward P/E. If you’re considering NYT for your portfolio, see our FREE research report to learn more.
Cable One (CABO)
Rolling One-Year Beta: 0.58
Founded in 1986, Cable One (NYSE:CABO) provides high-speed internet, cable television, and telephone services, primarily in smaller markets across the United States.
Why Do We Pass on CABO?
- Sluggish trends in its residential data subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
- Projected sales decline of 2.7% over the next 12 months indicates demand will continue deteriorating
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 1.5 percentage points over the next year
At $135.87 per share, Cable One trades at 0.9x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than CABO.
One Stock to Watch:
Coca-Cola (KO)
Rolling One-Year Beta: 0.10
A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE:KO) is a storied beverage company best known for its flagship soda.
Why Should KO Be on Your Watchlist?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 11.1% over the past two years
- Enormous revenue base of $46.98 billion provides significant negotiating leverage in retail partnerships
- Products command premium prices and result in a best-in-class gross margin of 60.6%
Coca-Cola is trading at $71.78 per share, or 23.8x forward P/E. Is now a good 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 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.