Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
Cable One (CABO)
Rolling One-Year Beta: 0.47
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 Should You Dump CABO?
- Sluggish trends in its residential data subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Cable One is trading at $142.83 per share, or 3.9x forward P/E. Read our free research report to see why you should think twice about including CABO in your portfolio.
Driven Brands (DRVN)
Rolling One-Year Beta: 0.79
With approximately 5,000 locations across 49 U.S. states and 13 other countries, Driven Brands (NASDAQ: DRVN) operates a network of automotive service centers offering maintenance, car washes, paint, collision repair, and glass services across North America.
Why Do We Avoid DRVN?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Driven Brands’s stock price of $14.98 implies a valuation ratio of 11.3x forward P/E. Dive into our free research report to see why there are better opportunities than DRVN.
One Stock to Watch:
Enterprise Financial Services (EFSC)
Rolling One-Year Beta: 0.89
Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services (NASDAQ: EFSC) is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states.
Why Does EFSC Stand Out?
- Annual net interest income growth of 19% over the past five years was outstanding, reflecting market share gains this cycle
- Earnings per share have massively outperformed its peers over the last five years, increasing by 15.4% annually
- Impressive 10.9% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
At $52.49 per share, Enterprise Financial Services trades at 1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. 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
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