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1 Safe-and-Steady Stock to Own for Decades and 2 We Brush Off

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.

Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here is one low-volatility stock that could succeed under all market conditions and two that may not deliver the returns you need.

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 Does VRSN Worry Us?

  1. Annual revenue growth of 4.5% over the last two years was well below our standards for the software sector
  2. Projected sales growth of 5.2% for the next 12 months suggests sluggish demand
  3. Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs

At $264.47 per share, VeriSign trades at 14.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than VRSN.

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 Do We Think Twice About ACHC?

  1. Disappointing admissions over the past two years indicate demand is soft and that the company may need to revise its strategy
  2. 24.8 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
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Acadia Healthcare’s stock price of $24.27 implies a valuation ratio of 9.5x forward P/E. Check out our free in-depth research report to learn more about why ACHC doesn’t pass our bar.

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 Will SPGI Outperform?

  1. Market share has increased this cycle as its 15.5% annual revenue growth over the last five years was exceptional
  2. Share repurchases have increased shareholder returns as its annual earnings per share growth of 18.4% exceeded its revenue gains over the last two years
  3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

S&P Global is trading at $489.50 per share, or 26.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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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