1 Safe-and-Steady Stock with Solid Fundamentals 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 that may not keep up.

Two Stocks to Sell:

Warner Music Group (WMG)

Rolling One-Year Beta: 0.86

Launching the careers of legendary artists like Frank Sinatra, Warner Music Group (NASDAQ:WMG) is a music company managing a diverse portfolio of artists, recordings, and music publishing services worldwide.

Why Is WMG Risky?

1. Muted 8.5% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Warner Music Group’s stock price of $30.02 implies a valuation ratio of 19.5x forward P/E. Dive into our free research report to see why there are better opportunities than WMG.

Azenta (AZTA)

Rolling One-Year Beta: 1.00

Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ:AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.

Why Do We Pass on AZTA?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.5% annually over the last two years
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. Cash burn has widened over the last five years, making us question whether it can reliably generate shareholder value

At $38.76 per share, Azenta trades at 49.6x forward P/E. If you’re considering AZTA for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Ulta (ULTA)

Rolling One-Year Beta: 0.47

Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ:ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.

Why Are We Positive On ULTA?

1. Same-store sales growth lends it the confidence to gradually expand its store base so it can reach more customers
2. Locations open for at least a year are seeing increased demand as same-store sales have averaged 2.6% growth over the past two years
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Ulta is trading at $632.06 per share, or 23.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

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 5 Growth Stocks for this month. 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.