1 Safe-and-Steady Stock with Impressive Fundamentals and 2 We Brush Off
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. Keeping that in mind, here is one low-volatility stock that could succeed under all market conditions and two that may not keep up.
Two Stocks to Sell:
Xponential Fitness (XPOF)
Rolling One-Year Beta: 0.33
Owner of Club Pilates, Stretch Lab, BFT and Pure Barre, Xponential Fitness (NYSE:XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.
Why Should You Sell XPOF?
- Muted 19.5% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Xponential Fitness is trading at $4.65 per share, or 7.6x forward P/E. Check out our free in-depth research report to learn more about why XPOF doesn’t pass our bar.
Lucid (LCID)
Rolling One-Year Beta: 0.41
Founded by a former Tesla Vice President, Lucid Group (NASDAQ:LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.
Why Do We Think Twice About LCID?
- Negative 135% gross margin means it loses money on every sale and must pivot or scale quickly to survive
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
At $4.18 per share, Lucid trades at 0.7x forward price-to-sales. Read our free research report to see why you should think twice about including LCID in your portfolio.
One Stock to Buy:
CLEAR Secure (YOU)
Rolling One-Year Beta: -0.01
Recognized by its signature blue lanes and biometric pods at airport checkpoints across America, CLEAR Secure (NYSE:YOU) provides biometric identity verification technology that allows subscribers to bypass regular security lines at airports and access secure experiences at various venues.
Why Is YOU a Top Pick?
- Annual revenue growth of 36% over the past five years was outstanding, reflecting market share gains
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Robust free cash flow margin of 50.8% gives it many options for capital deployment
CLEAR Secure’s stock price of $41.56 implies a valuation ratio of 3.6x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive 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.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.