We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Many have heard the famous phrase “defense wins ballgames” from an old coach or those interested in sports.
Of course, it doesn’t just apply to sports; investors can also use this ideology in their stock selection process.
Low-beta stocks can help strengthen a portfolio’s defense, as these stocks are less sensitive to the broader market’s movements.
Three low-beta stocks – Lamb Weston (LW - Free Report) , Aflac (AFL - Free Report) , and The Hershey Company (HSY - Free Report) – could all be considerations for those looking to strengthen their portfolio defense.
Below is a chart illustrating the performance of all three stocks over the last year, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
In addition, all three have seen their earnings outlooks drift higher as of late, providing the cherry on top. Let’s take a closer look at each one.
The Hershey Company
The Hershey Company is the largest chocolate manufacturer in North America and a global leader in chocolate and non-chocolate confectionery. HSY has witnessed positive earnings estimate revisions, helping push the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Hershey reported strong quarterly results in its latest release on February 2nd, exceeding the Zacks Consensus EPS Estimate by more than 14% and reporting earnings of $2.02 per share.
Quarterly revenue totaled $2.6 billion, handily beating our consensus sales estimate and growing 13% year-over-year. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
And to top it off, the company rewards its shareholders via its annual dividend, currently yielding 1.7%. Displaying a shareholder-friendly nature, Hershey has grown its payout by nearly 9% over the last five years.
Image Source: Zacks Investment Research
Aflac
Aflac is an American insurance company and a massive supplier of supplemental insurance within the U.S. The company currently sports the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Aflac sports a respectable growth profile for a fully established business, with earnings forecasted to climb 5% in its current fiscal year (FY23) and a further 6.6% in FY24. Higher interest rates have benefited many companies in the financial sector, and Aflac has been no different.
Image Source: Zacks Investment Research
In addition, the stock does pay a dividend, currently yielding 2.3% and nearly precisely in line with the Zacks Finance sector average. Impressively, Aflac has grown its payout by a double-digit 10.8% over the last five years.
Image Source: Zacks Investment Research
Lamb Weston
Lamb Weston Holdings is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. Over the last several months, the company’s bottom line outlook has improved substantially across all timeframes, landing it into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
It’s impossible to ignore the company’s growth trajectory, with the Zacks Consensus EPS Estimate of $3.96 for its current fiscal year (FY23) suggesting an uptick of 90% year-over-year.
And in FY24, Lamb Weston’s bottom line is forecasted to expand a further 13%.
Image Source: Zacks Investment Research
Like the companies above, LW rewards its shareholders via an annual dividend currently yielding 1.1%, below its Zacks Consumer Staples sector average by a fair margin.
Still, Lamb Weston’s 6.5% five-year annualized dividend growth rate helps to bridge the gap.
Image Source: Zacks Investment Research
Bottom Line
Low-beta stocks are less sensitive to the market’s movements, helping provide investors with a valuable level of stability and defense.
And all three low-beta stocks above – Lamb Weston (LW - Free Report) , Aflac (AFL - Free Report) , and The Hershey Company (HSY - Free Report) – could all be considerations for those looking to strengthen their portfolio defense.
All three sport the highly-coveted Zacks Rank #1 (Strong Buy) and pay dividends, undoubtedly a powerful pairing.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
3 Low-Beta Stocks for a Defensive Approach
Many have heard the famous phrase “defense wins ballgames” from an old coach or those interested in sports.
Of course, it doesn’t just apply to sports; investors can also use this ideology in their stock selection process.
Low-beta stocks can help strengthen a portfolio’s defense, as these stocks are less sensitive to the broader market’s movements.
Three low-beta stocks – Lamb Weston (LW - Free Report) , Aflac (AFL - Free Report) , and The Hershey Company (HSY - Free Report) – could all be considerations for those looking to strengthen their portfolio defense.
Below is a chart illustrating the performance of all three stocks over the last year, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
In addition, all three have seen their earnings outlooks drift higher as of late, providing the cherry on top. Let’s take a closer look at each one.
The Hershey Company
The Hershey Company is the largest chocolate manufacturer in North America and a global leader in chocolate and non-chocolate confectionery. HSY has witnessed positive earnings estimate revisions, helping push the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Hershey reported strong quarterly results in its latest release on February 2nd, exceeding the Zacks Consensus EPS Estimate by more than 14% and reporting earnings of $2.02 per share.
Quarterly revenue totaled $2.6 billion, handily beating our consensus sales estimate and growing 13% year-over-year. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
And to top it off, the company rewards its shareholders via its annual dividend, currently yielding 1.7%. Displaying a shareholder-friendly nature, Hershey has grown its payout by nearly 9% over the last five years.
Image Source: Zacks Investment Research
Aflac
Aflac is an American insurance company and a massive supplier of supplemental insurance within the U.S. The company currently sports the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Aflac sports a respectable growth profile for a fully established business, with earnings forecasted to climb 5% in its current fiscal year (FY23) and a further 6.6% in FY24. Higher interest rates have benefited many companies in the financial sector, and Aflac has been no different.
Image Source: Zacks Investment Research
In addition, the stock does pay a dividend, currently yielding 2.3% and nearly precisely in line with the Zacks Finance sector average. Impressively, Aflac has grown its payout by a double-digit 10.8% over the last five years.
Image Source: Zacks Investment Research
Lamb Weston
Lamb Weston Holdings is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. Over the last several months, the company’s bottom line outlook has improved substantially across all timeframes, landing it into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
It’s impossible to ignore the company’s growth trajectory, with the Zacks Consensus EPS Estimate of $3.96 for its current fiscal year (FY23) suggesting an uptick of 90% year-over-year.
And in FY24, Lamb Weston’s bottom line is forecasted to expand a further 13%.
Image Source: Zacks Investment Research
Like the companies above, LW rewards its shareholders via an annual dividend currently yielding 1.1%, below its Zacks Consumer Staples sector average by a fair margin.
Still, Lamb Weston’s 6.5% five-year annualized dividend growth rate helps to bridge the gap.
Image Source: Zacks Investment Research
Bottom Line
Low-beta stocks are less sensitive to the market’s movements, helping provide investors with a valuable level of stability and defense.
And all three low-beta stocks above – Lamb Weston (LW - Free Report) , Aflac (AFL - Free Report) , and The Hershey Company (HSY - Free Report) – could all be considerations for those looking to strengthen their portfolio defense.
All three sport the highly-coveted Zacks Rank #1 (Strong Buy) and pay dividends, undoubtedly a powerful pairing.