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.
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 keep up.
Two Stocks to Sell:
VeriSign (VRSN)
Rolling One-Year Beta: 0.66
As the silent guardian of the internet's roadmap, VeriSign (NASDAQ: VRSN) operates the authoritative registry for .com and .net domain names, enabling websites to be found reliably when users type web addresses.
Why Are We Hesitant About VRSN?
- Muted 4.5% annual revenue growth over the last two years shows its demand lagged behind its software peers
- Estimated sales growth of 5.2% for the next 12 months is soft and implies weaker demand
- Static operating margin over the last year shows it couldn’t become more efficient
At $262.29 per share, VeriSign trades at 14.6x forward price-to-sales. Read our free research report to see why you should think twice about including VRSN in your portfolio.
Acadia Healthcare (ACHC)
Rolling One-Year Beta: 0.75
With a network of over 250 facilities serving patients in 38 states and Puerto Rico, Acadia Healthcare (NASDAQ: ACHC) operates facilities providing mental health and substance use disorder treatment services across the United States.
Why Does ACHC Give Us Pause?
- Underwhelming admissions over the past two years suggest it might have to lower prices to accelerate growth
- Free cash flow margin shrank by 24.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Acadia Healthcare is trading at $24.69 per share, or 9.5x forward P/E. To fully understand why you should be careful with ACHC, check out our full research report (it’s free for active Edge members).
One Stock to Buy:
S&P Global (SPGI)
Rolling One-Year Beta: 0.95
Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE: SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.
Why Is SPGI a Good Business?
- Annual revenue growth of 15.5% over the last five years was superb and indicates its market share increased during this cycle
- Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
S&P Global’s stock price of $483.03 implies a valuation ratio of 26.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
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 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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