The orbital-dependent correlation energy functional resulting from second order Kohn-Sham perturbation theory leads to atomic correlation potentials with correct shell structure and asymptotic behavior. The absolute magnitude of the exact correlation potential, however, is greatly overestimated. In addition, this functional is variationally instable, which shows up for systems with nearly degenerate highest occupied and lowest unoccupied levels like Be. In this contribution we examine the simplest resummation of the Kohn-Sham perturbation series which has the potential to resolve both the inaccuracy and the instability problem of the second order expression. This resummation includes only the hole-hole terms of the Epstein-Nesbet series of diagrams, which has the advantage that the resulting functional is computationally as efficient as the pure second order expression. The hole-hole Epstein-Nesbet functional is tested for a number of atoms and ions. It is found to reproduce correlation and ground state energies with an accuracy comparable to that of state-of-the-art generalized gradient approximations. The correlation potential, on the other hand, is dramatically improved compared to that obtained from generalized gradient approximations. The same applies to all quantities directly related to the potential, as, for instance, Kohn-Sham eigenvalues and excitation energies. Most importantly, however, the hole-hole Epstein-Nesbet functional turned out to be variationally stable for all neutral as well as all singly and doubly ionized atoms considered so far, including the case of Be.