1 Safe-and-Steady Stock to Keep an Eye On and 2 to Keep Off Your Radar

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

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:

La-Z-Boy (LZB)

Rolling One-Year Beta: 0.57

The prized possession of every mancave, La-Z-Boy (NYSE:LZB) is a furniture company specializing in recliners, sofas, and seats.

Why Do We Think LZB Will Underperform?

  1. Annual sales declines of 8% for the past two years show its products and services struggled to connect with the market

  2. Estimated sales growth of 1.8% for the next 12 months is soft and implies weaker demand

  3. Waning returns on capital imply its previous profit engines are losing steam

At $39.94 per share, La-Z-Boy trades at 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than LZB .

GXO Logistics (GXO)

Rolling One-Year Beta: 0.94

With notable customers such as Nike and Apple, GXO (NYSE:GXO) manages outsourced supply chains and warehousing for various companies.

Why Does GXO Give Us Pause?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion

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

  3. 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

GXO Logistics’s stock price of $36.17 implies a valuation ratio of 11.9x forward P/E. To fully understand why you should be careful with GXO, check out our full research report (it’s free) .

One Stock to Watch:

Republic Services (RSG)

Rolling One-Year Beta: 0.37

Processing several million tons of recyclables annually, Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities.

Why Should RSG Be on Your Watchlist?

  1. Annual revenue growth of 9.3% over the last five years beat the sector average and underscores the unique value of its offerings

  2. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 18.6%, and its operating leverage amplified its profits over the last five years

  3. RSG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Republic Services is trading at $250.99 per share, or 35.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free .

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