One Stock to Hold and Two to Avoid for Long-Term Gains
Stability is a desirable trait for investments, but it’s not always synonymous with success. Low-volatility stocks often struggle to outperform their peers over time, particularly during bull markets when they tend to underperform. Fortunately, investors have resources like StockStory that help identify which companies are truly worth holding onto. In this article, we’ll examine one low-volatility stock that may offer consistent gains and two others that might not deliver the returns you need.
Two Stocks to Sell: Keurig Dr Pepper (KDP)
Keurig Dr Pepper is a consumer staples powerhouse born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple. Its portfolio includes a diverse range of beverages, including sodas, coffees, and juices. Despite its large revenue base, which makes it challenging to increase sales quickly, Keurig Dr Pepper’s annual revenue growth of 6.5% over the last three years was below our standards for the consumer staples sector.
One reason we’re concerned about KDP is that its expenses have increased as a percentage of revenue over the last year, resulting in a 5.7 percentage point decline in operating margin. This reflects management’s challenges in identifying attractive investment opportunities, which is reflected in its return on invested capital (ROIC) of 5.7%. Keurig Dr Pepper is currently trading at $32.63 per share, or 15.8x forward P/E.
Our free in-depth research report provides more information on why KDP doesn’t meet our investment criteria.
Two Stocks to Sell: Charles River Laboratories (CRL)
Charles River Laboratories is a non-clinical drug development services company that provides research models and manufacturing support to pharmaceutical and biotechnology companies. Founded in 1947 along the Massachusetts river, its organic sales performance over the past two years indicates that it may need to make strategic adjustments or rely on mergers and acquisitions (M&A) to drive growth.
However, we’re also concerned about Charles River Laboratories’ forecasted revenue decline of 2.6% for the upcoming 12 months, which suggests a potential drop in demand. Moreover, its eroding returns on capital from an already low base indicate that management’s recent investments are destroying value. Charles River Laboratories is currently trading at $140 per share, or 14.8x forward P/E.
Our free research report highlights why you should think twice about including CRL in your portfolio.
One Stock to Watch: Ross Stores (ROST)
Ross Stores is an off-price concept that sells excess inventory or overstocked items from other retailers at significantly lower prices than department stores. With its same-store sales growth averaging 3.5% over the past two years, it’s evident that Ross Stores is bringing in new and repeat customers to its stores.
The company’s offensive push to build new stores and attack untapped market opportunities has been backed by stellar returns on capital, showcasing management’s ability to identify highly profitable business ventures. As Ross Stores continues to find more attractive growth opportunities, its returns on capital are climbing. Currently trading at $142.24 per share, or 21.6x forward P/E, now might be the right time to buy.
Our comprehensive research report provides a deeper dive into ROST’s prospects.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding uncertainty for 2025. While speculation abounds about what might happen next, we’re focusing on companies that can succeed regardless of the political or macroeconomic environment.
By building a durable portfolio with our Top 5 Growth Stocks, you’ll be well-equipped to navigate any market conditions. This curated list features High-Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Our Top 5 Growth Stocks include familiar names like Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like Exlservice (+354% five-year return).
Find your next big winner with StockStory today.
Conclusion
Investing in the stock market can be a daunting task, especially when faced with uncertainty. However, by focusing on companies that are less affected by macroeconomic trends and have a proven track record of success, investors can build a durable portfolio that withstands any market conditions. Whether it’s Keurig Dr Pepper, Charles River Laboratories, or Ross Stores, each company has its unique strengths and weaknesses.
By staying informed and making informed decisions, investors can navigate the complexities of the stock market with confidence. Our Top 5 Growth Stocks offer a great starting point for building a diversified portfolio that will help you achieve your investment goals. Don’t miss out on this opportunity to invest in high-quality stocks that have consistently delivered market-beating returns.
