Low-beta stocks can provide several beneficial advantages for portfolios, including defensive qualities and stabilization when combined with high-beta stocks, helping to provide a more balanced risk profile.
And for those seeking a less volatile approach, three low-beta stocks – Cigna Group (CI - Free Report) , Cardinal Health (CAH - Free Report) , and W.R. Berkley (WRB - Free Report) – could be considered. All three sport a favorable Zacks Rank, carry solid growth, and sport sound valuations.
Below is a chart illustrating the performance of each over the last year.
Let’s take a deeper dive.
Cigna Group
Cigna enjoyed a rock-solid quarter throughout its latest period, exceeding our consensus EPS estimate by 4% and posting a 5% revenue beat. Earnings saw year-over-year growth of 37%, whereas revenue was 12% higher from the year-ago period.
The company raised its FY24 adjusted EPS outlook and boosted its quarterly dividend payout by 14% following the release, owing to its successful operations. The stock is currently a Zacks Rank #2 (Buy), boasting consistent top line expansion over the last several years.
Shares could also entice value-focused investors, underpinned by its Style Score of ‘A’ for Value. The current forward 12-month earnings multiple works out to 11.6X, a few ticks above the five-year median and comparing favorably to the Zacks – HMOs industry average of 15.5X.
Shares have traded as high as 14.3X over the last five years.
Cardinal Health
Better-than-expected quarterly results have helped drive the bullish move of CAH shares over the last year, with the company exceeding our consensus EPS estimates by an average of 15% across its last four releases.
Analysts have raised their earnings outlook across the board, particularly following its latest quarterly release. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy).
Like CI, value-conscious investors could find a liking to CAH shares, with the current 14.4X forward 12-month earnings multiple comparing favorably to the Zacks Medical – Dental Supplies industry average of 19.0X.
The stock sports a Style Score of ‘A’ for Value.
Shares also pay a solid dividend, yielding a solid 1.8% annually paired with a sustainable payout ratio sitting at 29% of the company’s earnings.
W.R. Berkley
WRB shares modestly outperformed relative to the S&P 500 over the last year, enjoying post-earnings positivity in three consecutive releases. The stock holds a Zacks Rank #2 (Buy), with earnings expectations creeping higher across the board.
Shares currently yield a modest 0.5% annually, undoubtedly on the lower end of the spectrum. Still, the company’s 10.8% five-year annualized dividend growth rate helps pick up the slack in a big way, reflecting its shareholder-friendly nature.
The company’s growth profile is notably strong for being non-tech, with consensus expectations for its current fiscal year (FY24) suggesting 22% earnings growth on 10% higher sales. Peeking ahead to FY25, current consensus expectations allude to a 9% bump in earnings paired with a 6% sales increase.
Bottom Line
During periods of heightened volatility, targeting low beta stocks can provide a valuable layer of defense.
And for those looking to blend in a layer of defense, all three low-beta stocks above – Cigna Group (CI - Free Report) , Cardinal Health (CAH - Free Report) , and W.R. Berkley (WRB - Free Report) – could be considered.
All three sport a favorable Zacks Rank, with analysts becoming optimistic about near-term outlooks.
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Low-beta stocks can provide several beneficial advantages for portfolios, including defensive qualities and stabilization when combined with high-beta stocks, helping to provide a more balanced risk profile.
And for those seeking a less volatile approach, three low-beta stocks – Cigna Group (CI - Free Report) , Cardinal Health (CAH - Free Report) , and W.R. Berkley (WRB - Free Report) – could be considered. All three sport a favorable Zacks Rank, carry solid growth, and sport sound valuations.
Below is a chart illustrating the performance of each over the last year.
Let’s take a deeper dive.
Cigna Group
Cigna enjoyed a rock-solid quarter throughout its latest period, exceeding our consensus EPS estimate by 4% and posting a 5% revenue beat. Earnings saw year-over-year growth of 37%, whereas revenue was 12% higher from the year-ago period.
The company raised its FY24 adjusted EPS outlook and boosted its quarterly dividend payout by 14% following the release, owing to its successful operations. The stock is currently a Zacks Rank #2 (Buy), boasting consistent top line expansion over the last several years.
Shares could also entice value-focused investors, underpinned by its Style Score of ‘A’ for Value. The current forward 12-month earnings multiple works out to 11.6X, a few ticks above the five-year median and comparing favorably to the Zacks – HMOs industry average of 15.5X.
Shares have traded as high as 14.3X over the last five years.
Cardinal Health
Better-than-expected quarterly results have helped drive the bullish move of CAH shares over the last year, with the company exceeding our consensus EPS estimates by an average of 15% across its last four releases.
Analysts have raised their earnings outlook across the board, particularly following its latest quarterly release. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy).
Like CI, value-conscious investors could find a liking to CAH shares, with the current 14.4X forward 12-month earnings multiple comparing favorably to the Zacks Medical – Dental Supplies industry average of 19.0X.
The stock sports a Style Score of ‘A’ for Value.
Shares also pay a solid dividend, yielding a solid 1.8% annually paired with a sustainable payout ratio sitting at 29% of the company’s earnings.
W.R. Berkley
WRB shares modestly outperformed relative to the S&P 500 over the last year, enjoying post-earnings positivity in three consecutive releases. The stock holds a Zacks Rank #2 (Buy), with earnings expectations creeping higher across the board.
Shares currently yield a modest 0.5% annually, undoubtedly on the lower end of the spectrum. Still, the company’s 10.8% five-year annualized dividend growth rate helps pick up the slack in a big way, reflecting its shareholder-friendly nature.
The company’s growth profile is notably strong for being non-tech, with consensus expectations for its current fiscal year (FY24) suggesting 22% earnings growth on 10% higher sales. Peeking ahead to FY25, current consensus expectations allude to a 9% bump in earnings paired with a 6% sales increase.
Bottom Line
During periods of heightened volatility, targeting low beta stocks can provide a valuable layer of defense.
And for those looking to blend in a layer of defense, all three low-beta stocks above – Cigna Group (CI - Free Report) , Cardinal Health (CAH - Free Report) , and W.R. Berkley (WRB - Free Report) – could be considered.
All three sport a favorable Zacks Rank, with analysts becoming optimistic about near-term outlooks.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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