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1 Safe-and-Steady Stock for Long-Term Investors and 2 That Underwhelm

VRSN Cover Image

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.

Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here is one low-volatility stock that could succeed under all market conditions and two that may not keep up.

Two Stocks to Sell:

VeriSign (VRSN)

Rolling One-Year Beta: 0.66

As the silent guardian of the internet's roadmap, VeriSign (NASDAQ: VRSN) operates the authoritative registry for .com and .net domain names, enabling websites to be found reliably when users type web addresses.

Why Are We Hesitant About VRSN?

  1. Muted 4.5% annual revenue growth over the last two years shows its demand lagged behind its software peers
  2. Estimated sales growth of 5.2% for the next 12 months is soft and implies weaker demand
  3. Static operating margin over the last year shows it couldn’t become more efficient

At $262.29 per share, VeriSign trades at 14.6x forward price-to-sales. Read our free research report to see why you should think twice about including VRSN in your portfolio.

Acadia Healthcare (ACHC)

Rolling One-Year Beta: 0.75

With a network of over 250 facilities serving patients in 38 states and Puerto Rico, Acadia Healthcare (NASDAQ: ACHC) operates facilities providing mental health and substance use disorder treatment services across the United States.

Why Does ACHC Give Us Pause?

  1. Underwhelming admissions over the past two years suggest it might have to lower prices to accelerate growth
  2. Free cash flow margin shrank by 24.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Acadia Healthcare is trading at $24.69 per share, or 9.5x forward P/E. To fully understand why you should be careful with ACHC, check out our full research report (it’s free for active Edge members).

One Stock to Buy:

S&P Global (SPGI)

Rolling One-Year Beta: 0.95

Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE: SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.

Why Is SPGI a Good Business?

  1. Annual revenue growth of 15.5% over the last five years was superb and indicates its market share increased during this cycle
  2. Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
  3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

S&P Global’s stock price of $483.03 implies a valuation ratio of 26.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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