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Zacks.com featured highlights include Otter Tail, Ardmore Shipping, Lancaster Colony and BJ's Wholesale Club
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For Immediate Release
Chicago, IL – August 31, 2022 – Stocks in this week’s article are Otter Tail Corp. (OTTR - Free Report) , Ardmore Shipping Corp. (ASC - Free Report) , Lancaster Colony Corp. (LANC - Free Report) and BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) .
Stamp Out a Choppy Market with These 4 Low-Beta Stocks
Inflationary pressure will probably continue to make the market volatile. The Fed chairman Jerome Powell warns that the central bank should keep raising interest rates to combat inflation, raising fears of recession.
Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities will deliver healthy returns and shield against volatile market conditions. In this regard, stocks like Otter Tail Corp., Ardmore Shipping Corp., Lancaster Colony Corp. and BJ's Wholesale Club Holdings, Inc. are worth betting on.
Beta Understanding
Beta measures the volatility or risk of a particular asset compared 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 a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
Here are four stocks among 13 that qualified the screening:
Otter Tail Corp. is a leading player in electric utility and manufacturing businesses. For 2022 and 2023, Otter Tail has witnessed upward earnings estimate revisions in the past 30 days. To secure more stable cashflows, Otter Tail is planning to invest in rate base growth opportunities.
Ardmore Shipping's outlook seems bright since the company has set a core strategy of developing a modern, high-quality fleet of products and chemical tankers. Building up good commercial relationships for the long term is also a strong focus of Ardmore Shipping. In 2022, ASC will likely see an earnings growth of 318%.
Lancaster Colony is a well-known name in manufacturing and marketing specialty food products. To counter the inflationary pressure, Lancaster Colony resorted to continued pricing actions to boost net sales. LANC is benefitting from handsome demand for frozen garlic bread and frozen dinner rolls.
BJ's Wholesale Club is a leading player in offering a differentiated shopping experience. BJ's Wholesale Club is improving it's merchandising and witnessing an increase in its member base in both size and quality.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Otter Tail, Ardmore Shipping, Lancaster Colony and BJ's Wholesale Club
For Immediate Release
Chicago, IL – August 31, 2022 – Stocks in this week’s article are Otter Tail Corp. (OTTR - Free Report) , Ardmore Shipping Corp. (ASC - Free Report) , Lancaster Colony Corp. (LANC - Free Report) and BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) .
Stamp Out a Choppy Market with These 4 Low-Beta Stocks
Inflationary pressure will probably continue to make the market volatile. The Fed chairman Jerome Powell warns that the central bank should keep raising interest rates to combat inflation, raising fears of recession.
Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities will deliver healthy returns and shield against volatile market conditions. In this regard, stocks like Otter Tail Corp., Ardmore Shipping Corp., Lancaster Colony Corp. and BJ's Wholesale Club Holdings, Inc. are worth betting on.
Beta Understanding
Beta measures the volatility or risk of a particular asset compared 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 a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
Here are four stocks among 13 that qualified the screening:
Otter Tail Corp. is a leading player in electric utility and manufacturing businesses. For 2022 and 2023, Otter Tail has witnessed upward earnings estimate revisions in the past 30 days. To secure more stable cashflows, Otter Tail is planning to invest in rate base growth opportunities.
Ardmore Shipping's outlook seems bright since the company has set a core strategy of developing a modern, high-quality fleet of products and chemical tankers. Building up good commercial relationships for the long term is also a strong focus of Ardmore Shipping. In 2022, ASC will likely see an earnings growth of 318%.
Lancaster Colony is a well-known name in manufacturing and marketing specialty food products. To counter the inflationary pressure, Lancaster Colony resorted to continued pricing actions to boost net sales. LANC is benefitting from handsome demand for frozen garlic bread and frozen dinner rolls.
BJ's Wholesale Club is a leading player in offering a differentiated shopping experience. BJ's Wholesale Club is improving it's merchandising and witnessing an increase in its member base in both size and quality.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1973973/stamp-out-choppy-market-with-these-4-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
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.