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1 Safe-and-Steady Stock to Keep an Eye On and 2 Facing Headwinds

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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 deliver the returns you need.

Two Stocks to Sell:

Central Garden & Pet (CENT)

Rolling One-Year Beta: 0.36

Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ: CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.

Why Is CENT Risky?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Sales are projected to be flat over the next 12 months and imply weak demand
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

At $32.68 per share, Central Garden & Pet trades at 11.7x forward P/E. To fully understand why you should be careful with CENT, check out our full research report (it’s free for active Edge members).

Lamb Weston (LW)

Rolling One-Year Beta: 0.20

Best known for its Grown in Idaho brand, Lamb Weston (NYSE: LW) produces and distributes potato products such as frozen french fries and mashed potatoes.

Why Does LW Give Us Pause?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Demand will likely fall over the next 12 months as Wall Street expects flat revenue
  3. Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 22.9% that must be offset through higher volumes

Lamb Weston is trading at $42.14 per share, or 16x forward P/E. Check out our free in-depth research report to learn more about why LW doesn’t pass our bar.

One Stock to Watch:

Ollie's (OLLI)

Rolling One-Year Beta: 0.47

Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ: OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.

Why Are We Positive On OLLI?

  1. Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
  2. Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.2% growth over the past two years
  3. Projected revenue growth of 14.8% for the next 12 months is above its three-year trend, pointing to accelerating demand

Ollie’s stock price of $112.34 implies a valuation ratio of 25.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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-small-cap company Exlservice (+354% 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.

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