1 Safe-and-Steady Stock to Own for Decades and 2 We Turn Down
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
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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.