1 Safe-and-Steady Stock to Consider Right Now and 2 We Turn Down

Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo.

Two Stocks to Sell:

Cable One (CABO)

Rolling One-Year Beta: 0.47

Founded in 1986, Cable One (NYSE:CABO) provides high-speed internet, cable television, and telephone services, primarily in smaller markets across the United States.

Why Should You Dump CABO?

1. Sluggish trends in its residential data subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Cable One is trading at $142.83 per share, or 3.9x forward P/E. Read our free research report to see why you should think twice about including CABO in your portfolio.

Driven Brands (DRVN)

Rolling One-Year Beta: 0.79

With approximately 5,000 locations across 49 U.S. states and 13 other countries, Driven Brands (NASDAQ:DRVN) operates a network of automotive service centers offering maintenance, car washes, paint, collision repair, and glass services across North America.

Why Do We Avoid DRVN?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
3. 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Driven Brands’s stock price of $14.98 implies a valuation ratio of 11.3x forward P/E. Dive into our free research report to see why there are better opportunities than DRVN.

One Stock to Watch:

Enterprise Financial Services (EFSC)

Rolling One-Year Beta: 0.89

Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services (NASDAQ:EFSC) is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states.

Why Does EFSC Stand Out?

1. Annual net interest income growth of 19% over the past five years was outstanding, reflecting market share gains this cycle
2. Earnings per share have massively outperformed its peers over the last five years, increasing by 15.4% annually
3. Impressive 10.9% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle

At $52.49 per share, Enterprise Financial Services trades at 1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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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