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. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need.

Two Stocks to Sell:

Greenbrier (GBX)

Rolling One-Year Beta: 0.67

Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.

Why Are We Out on GBX?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 1.7% annually over the last two years

2. Gross margin of 13.3% is below its competitors, leaving less money to invest in areas like marketing and R&D

3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 12 percentage points

At $44.84 per share, Greenbrier trades at 6.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including GBX in your portfolio, it’s free.

Bristol-Myers Squibb (BMY)

Rolling One-Year Beta: 0.07

With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE:BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.

Why Are We Wary of BMY?

1. Annual sales growth of 1.9% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand

2. Sales are projected to tank by 4.4% over the next 12 months as demand evaporates

3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Bristol-Myers Squibb’s stock price of $46.90 implies a valuation ratio of 7.1x forward P/E. To fully understand why you should be careful with BMY, check out our full research report (it’s free).

One Stock to Buy:

Texas Roadhouse (TXRH)

Rolling One-Year Beta: 0.48

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Why Will TXRH Outperform?

1. Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth

2. Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants

3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its rising returns show it’s making even more lucrative bets