1 Safe-and-Steady Stock with Exciting Potential and 2 to Be Wary Of

Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.

Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here is one low-volatility stock that could succeed under all market conditions and two stuck in limbo.

Two Stocks to Sell:

Constellation Brands (STZ)

Rolling One-Year Beta: 0.31

With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits.

Why Does STZ Give Us Pause?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth

  2. Sales are projected to tank by 6.6% over the next 12 months as demand evaporates

  3. Efficiency has decreased over the last year as its operating margin fell by 28.3 percentage points

At $188.60 per share, Constellation Brands trades at 13.7x forward price-to-earnings. If you’re considering STZ for your portfolio, see our FREE research report to learn more .

Dun & Bradstreet (DNB)

Rolling One-Year Beta: 0.30

Known for its proprietary D-U-N-S Number that serves as a unique identifier for businesses worldwide, Dun & Bradstreet (NYSE:DNB) provides business decisioning data and analytics that help companies evaluate credit risks, verify suppliers, enhance sales productivity, and gain market visibility.

Why Are We Cautious About DNB?

  1. 3.5% annual revenue growth over the last two years was slower than its business services peers

  2. Earnings per share were flat over the last two years and fell short of the peer group average

  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Dun & Bradstreet’s stock price of $9.14 implies a valuation ratio of 8.4x forward price-to-earnings. To fully understand why you should be careful with DNB, check out our full research report (it’s free) .

One Stock to Watch:

The Ensign Group (ENSG)

Rolling One-Year Beta: 0.14

Founded in 1999 and named after a naval term for a flag-bearing ship, The Ensign Group (NASDAQ:ENSG) operates skilled nursing facilities, senior living communities, and rehabilitation services across 15 states, primarily serving high-acuity patients recovering from various medical conditions.

Why Could ENSG Be a Winner?

  1. Unit sales averaged 14.3% growth over the past two years and imply healthy demand for its products

  2. Estimated revenue growth of 14.2% for the next 12 months implies its momentum over the last two years will continue

  3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 19.7% annually

OK