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1 Safe-and-Steady Stock to Consider Right Now and 2 to Be Wary Of

SSP 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.

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 deliver the returns you need.

Two Stocks to Sell:

E.W. Scripps (SSP)

Rolling One-Year Beta: -0.02

Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ: SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.

Why Do We Pass on SSP?

  1. 1.2% annual revenue growth over the last two years was slower than its consumer discretionary peers
  2. Free cash flow margin is forecasted to shrink by 8.2 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
  3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

E.W. Scripps’s stock price of $2.93 implies a valuation ratio of 1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SSP in your portfolio.

MSC Industrial (MSM)

Rolling One-Year Beta: 0.73

Founded in NYC’s Little Italy, MSC Industrial Direct (NYSE: MSM) provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors

Why Is MSM Risky?

  1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
  3. Incremental sales over the last five years were much less profitable as its earnings per share fell by 5.8% annually while its revenue grew

MSC Industrial is trading at $82.09 per share, or 21.3x forward P/E. Dive into our free research report to see why there are better opportunities than MSM.

One Stock to Watch:

German American Bancorp (GABC)

Rolling One-Year Beta: 0.79

Founded in 1910 during a wave of community banking expansion in the Midwest, German American Bancorp (NASDAQ: GABC) is a financial holding company that provides banking, wealth management, and insurance services across southern Indiana and Kentucky.

Why Could GABC Be a Winner?

  1. Exciting net interest income outlook for the upcoming 12 months calls for 37.6% growth, an acceleration from its four-year trend
  2. Projected tangible book value per share growth of 14.6% for the next 12 months indicates capital generation will rise above its two-year trend
  3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $36.80 per share, German American Bancorp trades at 1.3x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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

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