1 Safe-and-Steady Stock for Long-Term Investors and 2 We Avoid
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. 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:
Cable One (CABO)
Rolling One-Year Beta: 0.49
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 Are We Bearish on CABO?
- Demand for its offerings was relatively low as its number of residential data subscribers has underwhelmed
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 2.6 percentage points
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $15.45 per share, Cable One trades at 3.9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why CABO doesn’t pass our bar.
NVR (NVR)
Rolling One-Year Beta: 0.59
Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States.
Why Is NVR Risky?
- Sales tumbled by 2.1% annually over the last two years, showing market trends are working against it during this cycle
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 10.7% annually, worse than its revenue
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
NVR’s stock price of $6,231 implies a valuation ratio of 16.2x forward P/E. If you’re considering NVR for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
BGC (BGC)
Rolling One-Year Beta: 0.46
Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ:BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.
Why Should You Buy BGC?
- Market share has increased this cycle as its 24.3% annual revenue growth over the last two years was exceptional
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 24.3% annually
- Adequate return on equity shows management makes decent investment decisions
BGC is trading at $12.18 per share, or 8.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.