1 Safe-and-Steady Stock to Own for Decades and 2 Facing Challenges
Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could succeed under all market conditions and two that may not keep up.
Two Stocks to Sell:
Chewy (CHWY)
Rolling One-Year Beta: 0.53
Founded by Ryan Cohen, who later became known for his involvement in GameStop, Chewy (NYSE:CHWY) is an online retailer specializing in pet food, supplies, and healthcare services.
Why Are We Cautious About CHWY?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 6.5% for the last three years
- Projected sales growth of 7% for the next 12 months suggests sluggish demand
- High servicing costs result in an inferior gross margin of 29.7% that must be offset through higher volumes
Chewy is trading at $18.34 per share, or 8.2x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than CHWY.
Eastern Bank (EBC)
Rolling One-Year Beta: 0.24
Founded in 1818 as one of America's oldest mutual banks before converting to a public company in 2020, Eastern Bankshares (NASDAQ:EBC) operates as a bank holding company providing commercial and retail banking services primarily in Massachusetts, New Hampshire, and Rhode Island.
Why Do We Think Twice About EBC?
- Net interest margin of 3.5% reflects its high servicing and capital costs
- Annual tangible book value per share declines of 4.9% for the past five years show its capital management struggled during this cycle
- Low return on equity reflects management’s struggle to allocate funds effectively
Eastern Bank’s stock price of $21.43 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why EBC doesn’t pass our bar.
One Stock to Buy:
Vitesse Energy (VTS)
Rolling One-Year Beta: 0.01
Taking a hands-off approach to energy production, Vitesse Energy (NYSE:VTS) owns non-operated stakes in oil and natural gas wells primarily in North Dakota and Montana's Williston Basin.
Why Will VTS Outperform?
- Solid 14.9% annual revenue growth over the last five years indicates its offerings solve complex business issues
- Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 80.2%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $16.77 per share, Vitesse Energy trades at 74.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
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.
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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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.