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1 Safe-and-Steady Stock to Consider Right Now and 2 to Be Wary Of

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SSP 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.

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 deliver the returns you need.

Two Stocks to Sell:

E.W. Scripps (SSP)

Rolling One-Year Beta: -0.02

Founded as a chain of daily newspapers, E.W. Scripps SSP is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.

Why Do We Pass on SSP?

  • 1.2% annual revenue growth over the last two years was slower than its consumer discretionary peers
  • Free cash flow margin is forecasted to shrink by 8.2 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
  • Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

E.W. Scripps’s stock price of $2.93 implies a valuation ratio of 1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SSP in your portfolio.

MSC Industrial (MSM)

Rolling One-Year Beta: 0.73

Founded in NYC’s Little Italy, MSC Industrial Direct MSM provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors

Why Is MSM Risky?

  • 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
  • Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
  • Incremental sales over the last five years were much less profitable as its earnings per share fell by 5.8% annually while its revenue grew

MSC Industrial is trading at $82.09 per share, or 21.3x forward P/E. Dive into our free research report to see why there are better opportunities than MSM.

One Stock to Watch:

German American Bancorp (GABC)

Rolling One-Year Beta: 0.79

Founded in 1910 during a wave of community banking expansion in the Midwest, German American Bancorp GABC is a financial holding company that provides banking, wealth management, and insurance services across southern Indiana and Kentucky.

Why Could GABC Be a Winner?

  • Exciting net interest income outlook for the upcoming 12 months calls for 37.6% growth, an acceleration from its four-year trend
  • Projected tangible book value per share growth of 14.6% for the next 12 months indicates capital generation will rise above its two-year trend
  • Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $36.80 per share, German American Bancorp trades at 1.3x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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-small-cap company Comfort Systems (+782% five-year return).