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1 Safe-and-Steady Stock with Promising Prospects and 2 to Avoid

ACEL 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 that could offer consistent gains and two stuck in limbo.

Two Stocks to Sell:

Accel Entertainment (ACEL)

Rolling One-Year Beta: 0.91

Established in Illinois, Accel Entertainment (NYSE: ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Why Does ACEL Worry Us?

  1. Demand for its offerings was relatively low as its number of video gaming terminals sold has underwhelmed
  2. Estimated sales growth of 6.5% for the next 12 months implies demand will slow from its two-year trend
  3. Low free cash flow margin of 4.4% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Accel Entertainment’s stock price of $11.28 implies a valuation ratio of 12.2x forward P/E. Check out our free in-depth research report to learn more about why ACEL doesn’t pass our bar.

Service International (SCI)

Rolling One-Year Beta: 0.39

Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.

Why Are We Wary of SCI?

  1. Demand for its offerings was relatively low as its number of funeral services performed has underwhelmed
  2. Estimated sales growth of 2.6% for the next 12 months is soft and implies weaker demand
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $79.24 per share, Service International trades at 20.2x forward P/E. Dive into our free research report to see why there are better opportunities than SCI.

One Stock to Watch:

Cigna (CI)

Rolling One-Year Beta: 0.22

With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE: CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.

Why Could CI Be a Winner?

  1. Annual revenue growth of 18.1% over the past two years was outstanding, reflecting market share gains this cycle
  2. Massive revenue base of $255.3 billion gives it meaningful leverage when negotiating reimbursement rates
  3. Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 9.1% annually

Cigna is trading at $312.18 per share, or 10.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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.

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