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1 Safe-and-Steady Stock with Exciting Potential and 2 We Question

CPRT 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.

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:

Neogen (NEOG)

Rolling One-Year Beta: 0.94

Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ: NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.

Why Do We Pass on NEOG?

  1. Annual revenue growth of 4.3% over the last two years was below our standards for the healthcare sector
  2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

Neogen’s stock price of $5.74 implies a valuation ratio of 15.8x forward P/E. Check out our free in-depth research report to learn more about why NEOG doesn’t pass our bar.

ASGN (ASGN)

Rolling One-Year Beta: 0.68

Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN (NYSE: ASGN) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.

Why Are We Out on ASGN?

  1. Annual sales declines of 6.8% for the past two years show its products and services struggled to connect with the market during this cycle
  2. Sales are projected to be flat over the next 12 months and imply weak demand
  3. Incremental sales over the last five years were much less profitable as its earnings per share fell by 1.8% annually while its revenue grew

ASGN is trading at $50.35 per share, or 10.8x forward P/E. Dive into our free research report to see why there are better opportunities than ASGN.

One Stock to Buy:

Copart (CPRT)

Rolling One-Year Beta: 0.91

Starting as a single salvage yard in California in 1982, Copart (NASDAQ: CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.

Why Is CPRT a Good Business?

  1. Annual revenue growth of 16.1% over the past five years was outstanding, reflecting market share gains this cycle
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 20% over the last five years outstripped its revenue performance
  3. Strong free cash flow margin of 23.3% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy

At $45.44 per share, Copart trades at 26.7x 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

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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