For Immediate Release
Chicago, IL – April 1, 2021 – Stocks in this week’s article are Rocky Brands, Inc. (
RCKY Quick Quote RCKY - Free Report) , Stamps.com Inc. ( STMP Quick Quote STMP - Free Report) , Owens & Minor, Inc. ( OMI Quick Quote OMI - Free Report) , Natus Medical Incorporated ( NTUS Quick Quote NTUS - Free Report) and Toyota Motor Corporation ( TM Quick Quote TM - Free Report) . Combat the Choppy Market with These 5 Low-Beta Stocks
Many investors are quite optimistic about the U.S. economy's much-anticipated strong rebound this year as coronavirus vaccines are being rolled out on a massive scale. However, risks remain as the pandemic is yet to subside.
With new variants of the coronavirus spreading across the country, the officials of President Joe Biden's administration issued a warning that there might be a rise in new cases as well as the death toll since more people are going out for work and travel, and social-distancing restrictions are being relaxed .
Overall, the uncertainties made the market volatile. Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities will not only deliver healthy returns but also provide a shield against the 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 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/1324735/combat-the-choppy-market-with-these-5-low-beta-stocks 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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