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 providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
UniFirst (UNF)
Rolling One-Year Beta: 0.80
With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE: UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries.
Why Is UNF Not Exciting?
- Annual revenue growth of 3.5% over the last two years was below our standards for the business services sector
- Anticipated sales growth of 2.5% for the next year implies demand will be shaky
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2.1% annually
UniFirst is trading at $209.60 per share, or 28.5x forward P/E. Read our free research report to see why you should think twice about including UNF in your portfolio.
Preferred Bank (PFBC)
Rolling One-Year Beta: 0.65
Founded in 1991 with a focus on serving the Pacific Rim community in Southern California, Preferred Bank (NASDAQ: PFBC) is a commercial bank that provides banking products and services to small and mid-sized businesses, entrepreneurs, real estate developers, and high net worth individuals.
Why Does PFBC Give Us Pause?
- 9.2% annual net interest income growth over the last five years was slower than its banking peers
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 76.5 basis points (100 basis points = 1 percentage point)
- Earnings per share have contracted by 1.8% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
At $83.87 per share, Preferred Bank trades at 1.2x forward P/B. If you’re considering PFBC for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Wingstop (WING)
Rolling One-Year Beta: 0.55
The passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ: WING) is a popular fast-food chain known for its flavorful and crispy chicken wings offered in a variety of sauces and seasonings.
Why Will WING Beat the Market?
- Same-store sales growth averaged 11.9% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- Excellent operating margin of 25.7% highlights the efficiency of its business model
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Wingstop’s stock price of $272.45 implies a valuation ratio of 62x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
