Nasdaq
华尔街日报1 Safe-and-Steady Stock to Target This Week and 2 We Ignore
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 succeed under all market conditions and two stuck in limbo.
Two Stocks to Sell:
Champion Homes (SKY)
Rolling One-Year Beta: 0.70
Founded in 1951, Champion Homes (NYSE:SKY) is a manufacturer of modular homes and buildings in North America.
Why Are We Cautious About SKY?
- Estimated sales growth of 2.6% for the next 12 months implies demand will slow from its two-year trend
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 3.2% annually while its revenue grew
- Diminishing returns on capital suggest its earlier profit pools are drying up
Champion Homes’s stock price of $84.50 implies a valuation ratio of 23.9x forward P/E. If you’re considering SKY for your portfolio, see our FREE research report to learn more.
UL Solutions (ULS)
Rolling One-Year Beta: 0.39
Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE:ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards.
Why Does ULS Give Us Pause?
- Sales trends were unexciting over the last three years as its 4.3% annual growth was below the typical business services company
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 9.3% annually
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $80.42 per share, UL Solutions trades at 39.3x forward P/E. Dive into our free research report to see why there are better opportunities than ULS.
One Stock to Buy:
Rollins (ROL)
Rolling One-Year Beta: 0.29
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE:ROL) provides pest and wildlife control services to residential and commercial customers.
Why Are We Bullish on ROL?
- Annual revenue growth of 11.5% over the last five years was superb and indicates its market share increased during this cycle
- Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 52.3%
- Robust free cash flow margin of 16.5% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
Rollins is trading at $60.02 per share, or 48.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.