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Many have heard the famous phrase “defense wins ballgames” from an old coach or those interested in sports.
Of course, it doesn’t just apply to sports; investors can also use this ideology in their stock selection process.
Low-beta stocks can help strengthen a portfolio’s defense, as these stocks are less sensitive to the broader market’s movements.
Three low-beta stocks – Lamb Weston (LW - Free Report) , Aflac (AFL - Free Report) , and The Hershey Company (HSY - Free Report) – could all be considerations for those looking to strengthen their portfolio defense.
Below is a chart illustrating the performance of all three stocks over the last year, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
In addition, all three have seen their earnings outlooks drift higher as of late, providing the cherry on top. Let’s take a closer look at each one.
The Hershey Company
The Hershey Company is the largest chocolate manufacturer in North America and a global leader in chocolate and non-chocolate confectionery. HSY has witnessed positive earnings estimate revisions, helping push the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Hershey reported strong quarterly results in its latest release on February 2nd, exceeding the Zacks Consensus EPS Estimate by more than 14% and reporting earnings of $2.02 per share.
Quarterly revenue totaled $2.6 billion, handily beating our consensus sales estimate and growing 13% year-over-year. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
And to top it off, the company rewards its shareholders via its annual dividend, currently yielding 1.7%. Displaying a shareholder-friendly nature, Hershey has grown its payout by nearly 9% over the last five years.
Image Source: Zacks Investment Research
Aflac
Aflac is an American insurance company and a massive supplier of supplemental insurance within the U.S. The company currently sports the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Aflac sports a respectable growth profile for a fully established business, with earnings forecasted to climb 5% in its current fiscal year (FY23) and a further 6.6% in FY24. Higher interest rates have benefited many companies in the financial sector, and Aflac has been no different.
Image Source: Zacks Investment Research
In addition, the stock does pay a dividend, currently yielding 2.3% and nearly precisely in line with the Zacks Finance sector average. Impressively, Aflac has grown its payout by a double-digit 10.8% over the last five years.
Image Source: Zacks Investment Research
Lamb Weston
Lamb Weston Holdings is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. Over the last several months, the company’s bottom line outlook has improved substantially across all timeframes, landing it into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
It’s impossible to ignore the company’s growth trajectory, with the Zacks Consensus EPS Estimate of $3.96 for its current fiscal year (FY23) suggesting an uptick of 90% year-over-year.
And in FY24, Lamb Weston’s bottom line is forecasted to expand a further 13%.
Image Source: Zacks Investment Research
Like the companies above, LW rewards its shareholders via an annual dividend currently yielding 1.1%, below its Zacks Consumer Staples sector average by a fair margin.
Still, Lamb Weston’s 6.5% five-year annualized dividend growth rate helps to bridge the gap.
Image Source: Zacks Investment Research
Bottom Line
Low-beta stocks are less sensitive to the market’s movements, helping provide investors with a valuable level of stability and defense.
And all three low-beta stocks above – Lamb Weston (LW - Free Report) , Aflac (AFL - Free Report) , and The Hershey Company (HSY - Free Report) – could all be considerations for those looking to strengthen their portfolio defense.
All three sport the highly-coveted Zacks Rank #1 (Strong Buy) and pay dividends, undoubtedly a powerful pairing.
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3 Low-Beta Stocks for a Defensive Approach
Many have heard the famous phrase “defense wins ballgames” from an old coach or those interested in sports.
Of course, it doesn’t just apply to sports; investors can also use this ideology in their stock selection process.
Low-beta stocks can help strengthen a portfolio’s defense, as these stocks are less sensitive to the broader market’s movements.
Three low-beta stocks – Lamb Weston (LW - Free Report) , Aflac (AFL - Free Report) , and The Hershey Company (HSY - Free Report) – could all be considerations for those looking to strengthen their portfolio defense.
Below is a chart illustrating the performance of all three stocks over the last year, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
In addition, all three have seen their earnings outlooks drift higher as of late, providing the cherry on top. Let’s take a closer look at each one.
The Hershey Company
The Hershey Company is the largest chocolate manufacturer in North America and a global leader in chocolate and non-chocolate confectionery. HSY has witnessed positive earnings estimate revisions, helping push the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Hershey reported strong quarterly results in its latest release on February 2nd, exceeding the Zacks Consensus EPS Estimate by more than 14% and reporting earnings of $2.02 per share.
Quarterly revenue totaled $2.6 billion, handily beating our consensus sales estimate and growing 13% year-over-year. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
And to top it off, the company rewards its shareholders via its annual dividend, currently yielding 1.7%. Displaying a shareholder-friendly nature, Hershey has grown its payout by nearly 9% over the last five years.
Image Source: Zacks Investment Research
Aflac
Aflac is an American insurance company and a massive supplier of supplemental insurance within the U.S. The company currently sports the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Aflac sports a respectable growth profile for a fully established business, with earnings forecasted to climb 5% in its current fiscal year (FY23) and a further 6.6% in FY24. Higher interest rates have benefited many companies in the financial sector, and Aflac has been no different.
Image Source: Zacks Investment Research
In addition, the stock does pay a dividend, currently yielding 2.3% and nearly precisely in line with the Zacks Finance sector average. Impressively, Aflac has grown its payout by a double-digit 10.8% over the last five years.
Image Source: Zacks Investment Research
Lamb Weston
Lamb Weston Holdings is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. Over the last several months, the company’s bottom line outlook has improved substantially across all timeframes, landing it into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
It’s impossible to ignore the company’s growth trajectory, with the Zacks Consensus EPS Estimate of $3.96 for its current fiscal year (FY23) suggesting an uptick of 90% year-over-year.
And in FY24, Lamb Weston’s bottom line is forecasted to expand a further 13%.
Image Source: Zacks Investment Research
Like the companies above, LW rewards its shareholders via an annual dividend currently yielding 1.1%, below its Zacks Consumer Staples sector average by a fair margin.
Still, Lamb Weston’s 6.5% five-year annualized dividend growth rate helps to bridge the gap.
Image Source: Zacks Investment Research
Bottom Line
Low-beta stocks are less sensitive to the market’s movements, helping provide investors with a valuable level of stability and defense.
And all three low-beta stocks above – Lamb Weston (LW - Free Report) , Aflac (AFL - Free Report) , and The Hershey Company (HSY - Free Report) – could all be considerations for those looking to strengthen their portfolio defense.
All three sport the highly-coveted Zacks Rank #1 (Strong Buy) and pay dividends, undoubtedly a powerful pairing.