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1 Safe-and-Steady Stock to Own for Decades and 2 We Turn Down

SWBI Cover Image

Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. 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:

Smith & Wesson (SWBI)

Rolling One-Year Beta: 0.70

With a history dating back to 1852, Smith & Wesson (NASDAQ: SWBI) is a firearms manufacturer known for its handguns and rifles.

Why Are We Out on SWBI?

  1. Products and services have few die-hard fans as sales have declined by 6.6% annually over the last five years
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Eroding returns on capital suggest its historical profit centers are aging

Smith & Wesson’s stock price of $9.92 implies a valuation ratio of 53.6x forward P/E. Read our free research report to see why you should think twice about including SWBI in your portfolio.

Kforce (KFRC)

Rolling One-Year Beta: 0.71

With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE: KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.

Why Is KFRC Risky?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 9.2% annually over the last two years
  2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
  3. Waning returns on capital imply its previous profit engines are losing steam

At $27.24 per share, Kforce trades at 13.4x forward P/E. To fully understand why you should be careful with KFRC, check out our full research report (it’s free for active Edge members).

One Stock to Buy:

Verra Mobility (VRRM)

Rolling One-Year Beta: 0.21

Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NYSE: VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement.

Why Should You Buy VRRM?

  1. Market share has increased this cycle as its 15.7% annual revenue growth over the last five years was exceptional
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 20.6% over the last five years outstripped its revenue performance
  3. VRRM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy

Verra Mobility is trading at $23.90 per share, or 17.3x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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 6 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-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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