For Immediate Release
Chicago, IL – July 7, 2021 – Stocks in this week’s article are Rocky Brands, Inc. (
RCKY Quick Quote RCKY - Free Report) , Dollar General Corporation ( DG Quick Quote DG - Free Report) , Tyler Technologies, Inc. ( TYL Quick Quote TYL - Free Report) , Sturm, Ruger & Company, Inc. ( RGR Quick Quote RGR - Free Report) and EuroDry Ltd. ( EDRY Quick Quote EDRY - Free Report) . 5 Low-Beta Stocks to Quell Fears of a Choppy Market
Coronavirus vaccines are rolling out at a healthy pace, making scope for more people to step out for work and leisure. People are getting jobs and wages for workers are rising briskly, confirming that the domestic economy is recovering at a healthy pace.
Despite this, markets have become and will likely continue being volatile. This is because investors are keeping an eye on policy makers across the world to gauge the possibilities of tightening of easy money policies that have so long been aiding economies amid the pandemic.
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 choppy market conditions.
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/1757994/5-low-beta-stocks-to-quell-fears-of-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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