
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.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here is one low-volatility stock that could offer consistent gains and two that may not keep up.
Two Stocks to Sell:
E.W. Scripps (SSP)
Rolling One-Year Beta: 0.49
Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ: SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.
Why Do We Steer Clear of SSP?
- Annual revenue growth of 6.5% over the last five years was below our standards for the consumer discretionary sector
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
E.W. Scripps’s stock price of $3.55 implies a valuation ratio of 7.7x forward EV-to-EBITDA. To fully understand why you should be careful with SSP, check out our full research report (it’s free).
PACCAR (PCAR)
Rolling One-Year Beta: 0.71
Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
Why Is PCAR Not Exciting?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 16.5%
- Earnings per share have contracted by 27.8% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
At $124.28 per share, PACCAR trades at 22.1x forward P/E. If you’re considering PCAR for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
First BanCorp (FBP)
Rolling One-Year Beta: 0.84
Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE: FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.
Why Could FBP Be a Winner?
- Differentiated product suite leads to a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 4.6%
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 37.3% exceeded its revenue gains over the last five years
- Annual tangible book value per share growth of 20.1% over the last two years was superb and indicates its capital strength increased during this cycle
First BanCorp is trading at $22.50 per share, or 1.6x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.