I've been using one of
these for external parting and grooving. One holder and you can order cutting, parting and even threading inserts in just about any size you want. It's a fairly expensive system and the inserts aren't cheap but I get good life out of them if I use coolant. Parting and grooving at 1200 RPM on 1" stainless on a manual machine no problems at all. The only word of caution (which probably applies to any narrow grooving tool) is be cautious of parting under power. I found it easy to snap an edge off. I think the problem is that when parting under power you don't really notice the tool dulling until it's too late. Because of the shape of the insert if one edge snaps it can potentially make another edge useless.