3 Dawdling Stocks That Concern Us

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.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here are three low-volatility stocks to steer clear of and a few better alternatives.

E.W. Scripps (SSP)

Rolling One-Year Beta: -0.18

Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ:SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.

Why Should You Dump SSP?

1. 1.1% annual revenue growth over the last two years was slower than its consumer discretionary peers
2. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 10.4 percentage points
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

E.W. Scripps’s stock price of $2.14 implies a valuation ratio of 0.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than SSP.

STAAR Surgical (STAA)

Rolling One-Year Beta: 0.22

With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ:STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.

Why Do We Think STAA Will Underperform?

1. Muted 5.1% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 12% annually
3. Eroding returns on capital suggest its historical profit centers are aging

STAAR Surgical is trading at $18.35 per share, or 3.5x forward price-to-sales. Check out our free in-depth research report to learn more about why STAA doesn’t pass our bar.

Chemed (CHE)

Rolling One-Year Beta: 0.16

With a unique business model combining end-of-life care and household services, Chemed (NYSE:CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services.

Why Is CHE Not Exciting?

1. 4.6% annual revenue growth over the last five years was slower than its healthcare peers
2. Free cash flow margin dropped by 8.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Eroding returns on capital suggest its historical profit centers are aging

At $565.33 per share, Chemed trades at 21.9x forward price-to-earnings. Read our free research report to see why you should think twice about including CHE in your portfolio.

Stocks We Like More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.