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1 Safe-and-Steady Stock with Exciting Potential and 2 to Be Wary Of

RSG 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.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock providing safe-and-steady growth and two that may not deliver the returns you need.

Two Stocks to Sell:

Interpublic Group (IPG)

Rolling One-Year Beta: 0.82

With a history dating back to 1902 and roots in the McCann-Erickson agency, Interpublic Group (NYSE: IPG) is a marketing and communications holding company that owns agencies specializing in advertising, media buying, public relations, and digital marketing services.

Why Is IPG 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. Projected sales decline of 3.2% over the next 12 months indicates demand will continue deteriorating
  3. Free cash flow margin dropped by 9.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Interpublic Group’s stock price of $24.24 implies a valuation ratio of 9x forward P/E. Dive into our free research report to see why there are better opportunities than IPG.

Radian Group (RDN)

Rolling One-Year Beta: 0.64

Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE: RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership.

Why Do We Think Twice About RDN?

  1. Insurance products are facing significant market challenges during this cycle as net premiums earned has declined by 3.8% annually over the last four years
  2. Operational productivity has decreased over the last two years as its combined ratio worsened by 34.1 percentage points
  3. Incremental sales over the last two years were much less profitable as its earnings per share fell by 6.6% annually while its revenue grew

At $35.88 per share, Radian Group trades at 1x forward P/B. To fully understand why you should be careful with RDN, check out our full research report (it’s free).

One Stock to Watch:

Republic Services (RSG)

Rolling One-Year Beta: 0.37

Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.

Why Do We Watch RSG?

  1. 9.3% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
  2. Healthy operating margin of 18.6% shows it’s a well-run company with efficient processes, and its rise over the last five years was fueled by some leverage on its fixed costs
  3. RSG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Republic Services is trading at $240.49 per share, or 34.9x forward P/E. Is now the time to initiate a position? 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 9 Market-Beating Stocks. 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 Exlservice (+354% 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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