For Immediate Release
Chicago, IL – December 9, 2020 – Stocks in this week’s article are Innoviva, Inc. (
INVA Quick Quote INVA - Free Report) , Owens & Minor, Inc. ( OMI Quick Quote OMI - Free Report) , Standard Motor Products, Inc. ( SMP Quick Quote SMP - Free Report) , NIC Inc. ( EGOV Quick Quote EGOV - Free Report) , and California Water Service Group ( CWT Quick Quote CWT - Free Report) . Buy These 5 Low-Beta Stocks to Combat a Choppy Market
Investors are weighing the likely U.S. fiscal stimulus and vaccine rollouts on the one hand and rising coronavirus cases on the other, thus making the market extremely volatile.
Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities can not only deliver healthy returns but also provide a shield against choppy market conditions.
Meaning of Beta
Beta measures the volatility or risk of a particular asset in comparison to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of 20%, a stock with beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1138564/buy-these-5-low-beta-stocks-to-combat-a-choppy-market Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. About Screen of the Week
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Contact: Jim Giaquinto
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