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1 Safe-and-Steady Stock to Research Further and 2 to Think Twice About

MTCH 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.

Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here is one low-volatility stock that could offer consistent gains and two stuck in limbo.

Two Stocks to Sell:

Mayville Engineering (MEC)

Rolling One-Year Beta: 0.55

Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE: MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries.

Why Is MEC Not Exciting?

  1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
  2. High input costs result in an inferior gross margin of 12.5% that must be offset through higher volumes
  3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

At $16.23 per share, Mayville Engineering trades at 5.1x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why MEC doesn’t pass our bar.

Jacobs Solutions (J)

Rolling One-Year Beta: 0.84

With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE: J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.

Why Is J Risky?

  1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
  2. New orders were hard to come by as its backlog was flat over the past two years
  3. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 9.6% annually

Jacobs Solutions’s stock price of $131.70 implies a valuation ratio of 20.6x forward P/E. Read our free research report to see why you should think twice about including J in your portfolio.

One Stock to Watch:

Match Group (MTCH)

Rolling One-Year Beta: 0.35

Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.

Why Does MTCH Stand Out?

  1. Monetization efforts are paying off as its average revenue per user has grown by 9.5% annually over the last two years
  2. Share buybacks catapulted its annual earnings per share growth to 28%, which outperformed its revenue gains over the last three years
  3. MTCH is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Match Group is trading at $31.74 per share, or 6.8x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

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 5 Strong Momentum 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-micro-cap company Kadant (+351% 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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