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Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. 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:

Etsy (ETSY)

Rolling One-Year Beta: 0.54

Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.

Why Are We Hesitant About ETSY?

1. Market opportunities are plateauing as its active buyers were flat over the last two years

2. Estimated sales decline of 1.8% for the next 12 months implies a challenging demand environment

3. Earnings per share lagged its peers over the last three years as they only grew by 2.6% annually

Etsy is trading at $47.10 per share, or 6.7x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than ETSY.

Tennant (TNC)

Rolling One-Year Beta: 0.75

As the world’s largest manufacturer of autonomous mobile robots, Tennant (NYSE:TNC) designs, manufactures, and sells cleaning products to various sectors.

Why Are We Cautious About TNC?

1. Sales trends were unexciting over the last five years as its 2.3% annual growth was below the typical industrials company

2. Projected sales decline of 1% for the next 12 months points to a tough demand environment ahead

3. 7.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $76.74 per share, Tennant trades at 12.4x forward P/E. Read our free research report to see why you should think twice about including TNC in your portfolio, it’s free.

One Stock to Buy:

Lululemon (LULU)

Rolling One-Year Beta: 0.72

Originally serving yogis and hockey players, Lululemon (NASDAQ:LULU) is a designer, distributor, and retailer of athletic apparel for men and women.

Why Are We Bullish on LULU?

1. Comparable store sales rose by 8.2% on average over the past two years, demonstrating its ability to drive increased spending at existing locations

2. Unique assortment of products and pricing power lead to a best-in-class gross margin of 58.8%

3. LULU is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Lululemon’s stock price of $324 implies a valuation ratio of 21.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.