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. That said, here is one low-volatility stock that could succeed under all market conditions and two stuck in limbo.
Two Stocks to Sell:
Planet Fitness (PLNT)
Rolling One-Year Beta: -0.55
Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE: PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Why Are We Out on PLNT?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Projected 2.6 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Rising returns on capital show management is making relatively better investments
Planet Fitness is trading at $47.30 per share, or 14.3x forward P/E. Dive into our free research report to see why there are better opportunities than PLNT.
AdaptHealth (AHCO)
Rolling One-Year Beta: -0.11
With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ: AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.
Why Are We Bearish on AHCO?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.7% annually over the last two years
- Earnings per share have contracted by 20.7% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up
AdaptHealth’s stock price of $5.76 implies a valuation ratio of 5.3x forward EV-to-EBITDA. To fully understand why you should be careful with AHCO, check out our full research report (it’s free).
One Stock to Buy:
CSW (CSW)
Rolling One-Year Beta: 1.10
With over two centuries of combined operations manufacturing and supplying, CSW (NYSE: CSW) offers special chemicals, coatings, sealants, and lubricants for various industries.
Why Is CSW a Top Pick?
- Impressive 19.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Excellent operating margin of 18.4% highlights the efficiency of its business model
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 27.1% annually
At $290.14 per share, CSW trades at 22.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
