1 Safe-and-Steady Stock to Own for Decades and 2 to Steer Clear Of

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. That said, here is one low-volatility stock providing safe-and-steady growth and two that may not keep up.

Two Stocks to Sell:

Wendy's (WEN)

Rolling One-Year Beta: 0.22

Founded by Dave Thomas in 1969, Wendy’s (NASDAQ:WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality.

Why Is WEN Not Exciting?

  1. 5.6% annual revenue growth over the last five years was slower than its restaurant peers

  2. Demand is forecasted to shrink as its estimated sales for the next 12 months are flat

  3. High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $12.70 per share, Wendy's trades at 12.3x forward price-to-earnings. To fully understand why you should be careful with WEN, check out our full research report (it’s free) .

Wiley (WLY)

Rolling One-Year Beta: 0.74

With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE:WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals.

Why Should You Sell WLY?

  1. Annual sales declines of 1.6% for the past five years show its products and services struggled to connect with the market during this cycle

  2. Flat earnings per share over the last two years underperformed the sector average

  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.3 percentage points

Wiley is trading at $41.65 per share, or 17.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why WLY doesn’t pass our bar .

One Stock to Buy:

BellRing Brands (BRBR)

Rolling One-Year Beta: 0.86

Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.

Why Will BRBR Beat the Market?

  1. Products are selling at a rapid clip as its unit sales averaged an outstanding 21.2% growth rate over the past two years

  2. Earnings per share grew by 30.9% annually over the last three years, massively outpacing its peers

  3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

OK