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1 Safe-and-Steady Stock to Target This Week and 2 We Avoid
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 offer consistent gains and two that may not keep up.
Two Stocks to Sell:
Generac (GNRC)
Rolling One-Year Beta: 0.88
With its name deriving from a combination of “generating” and “AC”, Generac (NYSE:GNRC) offers generators and other power products for residential, industrial, and commercial use.
Why Are We Cautious About GNRC?
- 4.2% annual revenue growth over the last two years was slower than its industrials peers
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 9.5 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
Generac’s stock price of $155.34 implies a valuation ratio of 21.1x forward P/E. Read our free research report to see why you should think twice about including GNRC in your portfolio.
Kforce (KFRC)
Rolling One-Year Beta: 0.48
With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE:KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.
Why Do We Steer Clear of KFRC?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- Diminishing returns on capital suggest its earlier profit pools are drying up
Kforce is trading at $31.28 per share, or 14.3x forward P/E. Check out our free in-depth research report to learn more about why KFRC doesn’t pass our bar.
One Stock to Watch:
TaskUs (TASK)
Rolling One-Year Beta: 0.62
Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ:TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies.
Why Does TASK Stand Out?
- Annual revenue growth of 21.1% over the last five years was superb and indicates its market share increased during this cycle
- Free cash flow margin expanded by 21.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
At $11.58 per share, TaskUs trades at 7.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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.