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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.

Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here is one low-volatility stock that could succeed under all market conditions and two stuck in limbo.

Two Stocks to Sell:

Brown-Forman (BF.B)

Rolling One-Year Beta: 0.05

Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE:BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.

Why Do We Think Twice About BF.B?

1. Muted 2.6% annual revenue growth over the last three years shows its demand lagged behind its consumer staples peers

2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth

3. Projected sales growth of 1.4% for the next 12 months suggests sluggish demand

Brown-Forman is trading at $34.94 per share, or 19.5x forward P/E. To fully understand why you should be careful with BF.B, check out our full research report (it’s free).

MasterCraft (MCFT)

Rolling One-Year Beta: 0.88

Started by a waterskiing instructor, MasterCraft (NASDAQ:MCFT) specializes in designing, manufacturing, and selling sport boats.

Why Are We Hesitant About MCFT?

1. Performance surrounding its boats sold has lagged its peers

2. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 9.2 percentage points over the next year

3. Diminishing returns on capital suggest its earlier profit pools are drying up

MasterCraft’s stock price of $18.41 implies a valuation ratio of 13.8x forward P/E. If you’re considering MCFT for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Huron (HURN)

Rolling One-Year Beta: 0.48

Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ:HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions.

Why Could HURN Be a Winner?

1. Annual revenue growth of 13.1% over the last two years was superb and indicates its market share increased during this cycle

2. Adjusted operating margin improvement of 8.6 percentage points over the last five years demonstrates its ability to scale efficiently

3. Share buybacks catapulted its annual earnings per share growth to 34.7%, which outperformed its revenue gains over the last two years