Tomorrow, we’ll get the latest dose of CPI data. Then, on Thursday, we’ll get another dosage of inflation data with the Producer Price Index (PPI).
As many have become aware, CPI days have consistently been a pivotal point for the market. Things will be no different this time around, especially as many seek clarification on the future pace of rate hikes following a historical year-long tightening campaign.
For those looking to shield themselves from the inevitable volatility, low-beta stocks, such as – Interactive Brokers (IBKR - Free Report) , The Kroger Co. (KR - Free Report) , and Cisco Systems (CSCO - Free Report) – could be of interest.
The chart below illustrates the performance of all three stocks year-to-date, with the S&P 500 blended in as a benchmark.
Let’s take a closer look at each one.
Interactive Brokers
Interactive Brokers Group operates as an automated global electronic market maker and broker. Analysts have upped their earnings expectations across nearly all timeframes over the last 60 days, helping land the stock into a Zacks Rank #2 (Buy).
IBKR posted strong quarterly results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 12% and delivering a 5.3% revenue surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
In addition, IBKR shares provide a passive income stream, limiting the impact of drawdowns in other positions; currently, the company’s annual dividend yields 0.5%, below the Zacks Finance sector average.
The Kroger Co.
Founded in 1883, the long-time retailer operates approximately 2,700 retail stores under its various banners and divisions in 35 states. Presently, KR sports a favorable Zacks Rank #1 (Strong Buy).
Kroger shares aren’t expensive by any means, with the company’s 10.8X forward earnings multiple sitting nicely beneath the 12.4X five-year median and the Zacks Retail and Wholesale sector average.
KR carries a Style Score of “B” for Value.
Like IBKR, Kroger rewards its shareholders handsomely; the company’s annual dividend presently yields 2.2%, well above the Zacks sector average of 1.1%.
Impressively, Kroger has displayed a commitment to increasingly rewarding its shareholders, boasting a sizable 15% five-year annualized dividend growth rate.
Cisco Systems
Cisco Systems is an IP-based networking company offering products and services to service providers, companies, commercial users, and individuals. Analysts have taken a bullish stance on the company’s earnings outlook, landing it into a Zacks Rank #2 (Buy).
The market took the company’s latest earnings release in stride, sending shares on an upward trajectory post-earnings. Cisco exceeded the Zacks Consensus EPS Estimate by roughly 2.3% and reported revenue modestly above expectations.
CSCO shares provide exposure to technology paired with a passive income stream; Cisco’s dividend currently yields 3% annually, more than triple that of the Zacks Computer and Technology sector average.
Bottom Line
With CPI looming, investors may want to visit low-beta stocks as a shield against volatility. As we all know by now, CPI days have become quite a market-moving event.
All three low-beta stocks above – Interactive Brokers (IBKR - Free Report) , The Kroger Co. (KR - Free Report) , and Cisco Systems (CSCO - Free Report) – could be considerations for those looking for a shield against volatility.
All three sport improved earnings outlooks, indicating favorable near-term business outlooks.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
Tomorrow, we’ll get the latest dose of CPI data. Then, on Thursday, we’ll get another dosage of inflation data with the Producer Price Index (PPI).
As many have become aware, CPI days have consistently been a pivotal point for the market. Things will be no different this time around, especially as many seek clarification on the future pace of rate hikes following a historical year-long tightening campaign.
For those looking to shield themselves from the inevitable volatility, low-beta stocks, such as – Interactive Brokers (IBKR - Free Report) , The Kroger Co. (KR - Free Report) , and Cisco Systems (CSCO - Free Report) – could be of interest.
The chart below illustrates the performance of all three stocks year-to-date, with the S&P 500 blended in as a benchmark.
Let’s take a closer look at each one.
Interactive Brokers
Interactive Brokers Group operates as an automated global electronic market maker and broker. Analysts have upped their earnings expectations across nearly all timeframes over the last 60 days, helping land the stock into a Zacks Rank #2 (Buy).
IBKR posted strong quarterly results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 12% and delivering a 5.3% revenue surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
In addition, IBKR shares provide a passive income stream, limiting the impact of drawdowns in other positions; currently, the company’s annual dividend yields 0.5%, below the Zacks Finance sector average.
The Kroger Co.
Founded in 1883, the long-time retailer operates approximately 2,700 retail stores under its various banners and divisions in 35 states. Presently, KR sports a favorable Zacks Rank #1 (Strong Buy).
Kroger shares aren’t expensive by any means, with the company’s 10.8X forward earnings multiple sitting nicely beneath the 12.4X five-year median and the Zacks Retail and Wholesale sector average.
KR carries a Style Score of “B” for Value.
Like IBKR, Kroger rewards its shareholders handsomely; the company’s annual dividend presently yields 2.2%, well above the Zacks sector average of 1.1%.
Impressively, Kroger has displayed a commitment to increasingly rewarding its shareholders, boasting a sizable 15% five-year annualized dividend growth rate.
Cisco Systems
Cisco Systems is an IP-based networking company offering products and services to service providers, companies, commercial users, and individuals. Analysts have taken a bullish stance on the company’s earnings outlook, landing it into a Zacks Rank #2 (Buy).
The market took the company’s latest earnings release in stride, sending shares on an upward trajectory post-earnings. Cisco exceeded the Zacks Consensus EPS Estimate by roughly 2.3% and reported revenue modestly above expectations.
CSCO shares provide exposure to technology paired with a passive income stream; Cisco’s dividend currently yields 3% annually, more than triple that of the Zacks Computer and Technology sector average.
Bottom Line
With CPI looming, investors may want to visit low-beta stocks as a shield against volatility. As we all know by now, CPI days have become quite a market-moving event.
All three low-beta stocks above – Interactive Brokers (IBKR - Free Report) , The Kroger Co. (KR - Free Report) , and Cisco Systems (CSCO - Free Report) – could be considerations for those looking for a shield against volatility.
All three sport improved earnings outlooks, indicating favorable near-term business outlooks.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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