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1 safe-and-steady stock to own for decades and 2 we question
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 offer consistent gains and two that may not deliver the returns you need.
Two stocks to sell:
Brookdale (BKD)
Rolling One-Year Beta: -0.63
With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.
Why Does BKD Worry Us?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Estimated sales decline of 3.8% for the next 12 months implies an even more challenging demand environment
Brookdale’s stock price of $10.08 implies a valuation ratio of 14.1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including BKD in your portfolio.
United Natural Foods (UNFI)
Rolling One-Year Beta: -0.25
With a vast network of 55 distribution centers spanning approximately 30 million square feet of warehouse space, United Natural Foods (NYSE:UNFI) is North America's premier grocery wholesaler distributing natural, organic, and conventional products to over 30,000 retail locations across the US and Canada.
Why Are We Bearish on UNFI?
- Sales stagnated over the last three years and signal the need for new growth strategies
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 13.4%
- ROIC of 2.7% reflects management’s challenges in identifying attractive investment opportunities, and its decreasing returns suggest its historical profit centers are aging
United Natural Foods is trading at $46.87 per share, or 14.2x forward P/E. Check out our free in-depth research report to learn more about why UNFI doesn’t pass our bar.
One stock to buy:
Riley Exploration Permian (REPX)
Rolling One-Year Beta: -1.19
Operating in counties where legacy oil fields have been producing since the early 1900s, Riley Exploration Permian (NYSE:REPX) drills for and produces oil and natural gas from horizontal wells in the Permian Basin of West Texas and New Mexico.
Why Will REPX Beat the Market?
- Market share has increased this cycle as its 30.8% annual revenue growth over the last eight years was exceptional
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 76.4%
- Strong free cash flow margin of 16.1% enables it to reinvest or return capital consistently
At $54.63 per share, Riley Exploration Permian trades at 5.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks we like even more
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.