2 Safe-and-Steady Stocks for Long-Term Investors and 1 We Turn Down

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.

Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here are two low-volatility stocks that could succeed under all market conditions and one that may not deliver the returns you need.

One Stock to Sell:

Main Street Capital (MAIN)

Rolling One-Year Beta: 0.83

With a focus on building long-term partnerships rather than quick transactions, Main Street Capital (NYSE:MAIN) is a business development company that provides long-term debt and equity capital to lower middle market and middle market companies.

Why Does MAIN Fall Short?

1. Incremental sales over the last two years were less profitable as its earnings per share were flat while its revenue grew
2. Annual tangible book value per share growth of 7.5% over the last two years was below our standards for the financials sector

Main Street Capital’s stock price of $61.82 implies a valuation ratio of 15.6x forward P/E. If you’re considering MAIN for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Verra Mobility (VRRM)

Rolling One-Year Beta: -0.01

Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NYSE:VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement.

Why Could VRRM Be a Winner?

1. Annual revenue growth of 18.4% over the last five years was superb and indicates its market share increased during this cycle
2. Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 61.8%
3. Earnings per share grew by 20.4% annually over the last five years and trumped its peers

At $18.79 per share, Verra Mobility trades at 13.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Houlihan Lokey (HLI)

Rolling One-Year Beta: 0.91

Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey (NYSE:HLI) is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.

Why Will HLI Beat the Market?

1. Annual revenue growth of 20% over the last two years was superb and indicates its market share increased during this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 34.9% outpaced its revenue gains
3. Impressive 34.3% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle

Houlihan Lokey is trading at $167.61 per share, or 19.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.