Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
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 succeed under all market conditions and two that may not deliver the returns you need.
Two Stocks to Sell:
Dropbox (DBX)
Rolling One-Year Beta: 0.89
Founded by the long-serving CEO Drew Houston and Arash Ferdowsi in 2007, Dropbox (NASDAQ: DBX) provides a file hosting cloud platform that helps organizations collaborate and share documents.
Why Are We Cautious About DBX?
- Offerings struggled to generate interest as its billings were flat over the last year
- Forecasted revenue decline of 2.7% for the upcoming 12 months implies demand will fall off a cliff
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 3 percentage points
At $28.14 per share, Dropbox trades at 3.4x forward price-to-sales. To fully understand why you should be careful with DBX, check out our full research report (it’s free).
Papa John's (PZZA)
Rolling One-Year Beta: 0.88
Founded by the eclectic John “Papa John” Schnatter, Papa John’s (NASDAQ: PZZA) is a globally recognized pizza delivery and carryout chain known for “better ingredients” and “better pizza”.
Why Are We Out on PZZA?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Estimated sales growth of 2.9% for the next 12 months implies demand will slow from its six-year trend
- Gross margin of 17.3% reflects the bad unit economics inherent in most restaurant businesses
Papa John’s stock price of $49.09 implies a valuation ratio of 24.1x forward P/E. Read our free research report to see why you should think twice about including PZZA in your portfolio.
One Stock to Buy:
Monster (MNST)
Rolling One-Year Beta: 0.21
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Are We Bullish on MNST?
- Highly efficient business model is illustrated by its impressive 27.3% operating margin
- Robust free cash flow margin of 22% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
- ROIC punches in at 38.1%, illustrating management’s expertise in identifying profitable investments
Monster is trading at $62.82 per share, or 33.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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-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
