2 Safe-and-Steady Stocks to Research Further and 1 That Underwhelm
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here are two low-volatility stocks that could succeed under all market conditions and one stuck in limbo.
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Rolling One-Year Beta: 0.57
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With over 2,400 hours of local news produced weekly and 640 broadcast channels reaching millions of American homes, Sinclair (NASDAQ:SBGI) operates a network of 185 local television stations across 86 U.S. markets, producing news programming and distributing content from major networks.
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Why Do We Think SBGI Will Underperform?
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Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.2% annually over the last five years
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Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 21.9% annually, worse than its revenue
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Free cash flow margin dropped by 8.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
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Sinclair’s stock price of $13.89 implies a valuation ratio of 1.9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SBGI doesn’t pass our bar.
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Rolling One-Year Beta: 0.62
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Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE:INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.
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Why Should You Buy INSP?
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Controlled growth in new domestic medical centers reflects a methodical approach to market expansion
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Earnings per share have massively outperformed its peers over the last five years, increasing by 22.5% annually
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Free cash flow margin jumped by 31.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
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At $80.36 per share, Inspire Medical Systems trades at 27.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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Rolling One-Year Beta: 0.68
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With roots dating back to 1957 and a strategic presence along the I-64 and I-81 corridors, City Holding (NASDAQGS:CHCO) operates as a financial holding company providing banking, trust, and investment services through its subsidiary City National Bank across West Virginia, Kentucky, Virginia, and Ohio.