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2 Safe-and-Steady Stocks to Target This Week and 1 to Be Wary Of

AMN 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. That said, here are two low-volatility stocks providing safe-and-steady growth and one stuck in limbo.

One Stock to Sell:

AMN Healthcare Services (AMN)

Rolling One-Year Beta: 0.29

With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE: AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.

Why Do We Think AMN Will Underperform?

  1. Declining travelers on assignment over the past two years indicate demand is soft and that the company may need to revise its strategy
  2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

AMN Healthcare Services’s stock price of $20.77 implies a valuation ratio of 17.1x forward P/E. If you’re considering AMN for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

ADP (ADP)

Rolling One-Year Beta: 0.54

Processing one out of every six paychecks in the United States, ADP (NASDAQ: ADP) provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration.

Why Do We Watch ADP?

  1. Unparalleled revenue scale of $20.2 billion gives it an edge in distribution
  2. Robust free cash flow margin of 18.9% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
  3. Returns on capital are growing as management capitalizes on its market opportunities

At $320 per share, ADP trades at 30.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Booz Allen Hamilton (BAH)

Rolling One-Year Beta: 0.37

With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE: BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.

Why Will BAH Beat the Market?

  1. Market share has increased this cycle as its 13.7% annual revenue growth over the last two years was exceptional
  2. Core business can prosper without any help from acquisitions as its organic revenue growth averaged 12.9% over the past two years
  3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 14.9% exceeded its revenue gains over the last five years

Booz Allen Hamilton is trading at $108.40 per share, or 15.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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 176% over the last five years.

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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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