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1 Safe-and-Steady Stock Worth Your Attention and 2 We Turn Down

TSN Cover Image

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

Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here is one low-volatility stock providing safe-and-steady growth and two that may not keep up.

Two Stocks to Sell:

Tyson Foods (TSN)

Rolling One-Year Beta: 0.38

Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.

Why Are We Out on TSN?

  1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.1% over the last three years was below our standards for the consumer staples sector
  2. Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 7.4% that must be offset through higher volumes
  3. Earnings per share have contracted by 25.5% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

At $52.16 per share, Tyson Foods trades at 14.1x forward P/E. If you’re considering TSN for your portfolio, see our FREE research report to learn more.

AMC Entertainment (AMC)

Rolling One-Year Beta: 0.79

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE: AMC) operates movie theaters primarily in the US and Europe.

Why Is AMC Risky?

  1. Annual revenue growth of 5.7% over the last five years was below our standards for the consumer discretionary sector
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

AMC Entertainment’s stock price of $2.78 implies a valuation ratio of 2.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why AMC doesn’t pass our bar.

One Stock to Watch:

Broadridge (BR)

Rolling One-Year Beta: 0.67

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE: BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Why Are We Fans of BR?

  1. 8.8% annual revenue growth over the last five years surpassed the sector average as its services resonated with customers
  2. Incremental sales over the last five years have been more profitable as its earnings per share increased by 11.7% annually, topping its revenue gains
  3. Free cash flow margin expanded by 4.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Broadridge is trading at $226.38 per share, or 24.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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-small-cap company Comfort Systems (+782% 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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