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Zacks.com featured highlights Penumbra, Lamb Weston, Transportadora de Gas del Sur and AeroVironment
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For Immediate Release
Chicago, IL – May 23, 2023 – Stocks in this week’s article are Penumbra Inc. (PEN - Free Report) , Lamb Weston Holdings, Inc. (LW - Free Report) , Transportadora de Gas del Sur SA (TGS - Free Report) and AeroVironment Inc. (AVAV - Free Report) .
Buy These 4 Low-Beta Stocks to Sail Through Market Volatility
Wall Street is grappling with renewed worries as the broader market has slipped into debt ceiling uncertainties. This is creating fears and hence will continue to make the market volatile. Thus, forming a portfolio of low-beta stocks is of utmost importance since the securities will deliver healthy returns and shield against choppy market conditions.
In this regard, stocks like Penumbra Inc., Lamb Weston Holdings, Inc., Transportadora de Gas del Sur SA and AeroVironment Inc. are worth betting on.
Understanding Beta
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 12 that qualified for the screening:
Penumbra, headquartered in Alameda, CA, is among the leading healthcare players focusing on innovative therapies. Penumbra, having a global presence, primarily addresses challenging medical conditions through its broad portfolio of novel products.
Lamb Weston Holdings is a well-known supplier of sweet potato, frozen potato, vegetable products and appetizers. Lamb Weston supplies these products to retailers and restaurants across the globe and thereby secures steady cashflows.
Transportadora de Gas del Sur SA’s midstream asset portfolio has the most extensive natural gas pipeline network in Latin America. It generates stable fee-based revenues since its pipeline assets transport more than 60% of the gas consumed in Argentina.
Transportadora de Gas del Sur has witnessed upward estimate revisions for its 2023 bottom line in the past 30 days. The upward revisions are backed by its stable business model and a strong focus on creating differential shareholder value. Also, the firm has lower debt exposure than the composite stocks belonging to the industry.
Headquartered in Simi Valley, CA, AeroVironment is a well-known name in manufacturing unmanned aircraft systems and tactical missile systems. For fiscal 2024, the stock is likely to see earnings growth of 94.5%.
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.
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/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights Penumbra, Lamb Weston, Transportadora de Gas del Sur and AeroVironment
For Immediate Release
Chicago, IL – May 23, 2023 – Stocks in this week’s article are Penumbra Inc. (PEN - Free Report) , Lamb Weston Holdings, Inc. (LW - Free Report) , Transportadora de Gas del Sur SA (TGS - Free Report) and AeroVironment Inc. (AVAV - Free Report) .
Buy These 4 Low-Beta Stocks to Sail Through Market Volatility
Wall Street is grappling with renewed worries as the broader market has slipped into debt ceiling uncertainties. This is creating fears and hence will continue to make the market volatile. Thus, forming a portfolio of low-beta stocks is of utmost importance since the securities will deliver healthy returns and shield against choppy market conditions.
In this regard, stocks like Penumbra Inc., Lamb Weston Holdings, Inc., Transportadora de Gas del Sur SA and AeroVironment Inc. are worth betting on.
Understanding Beta
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 12 that qualified for the screening:
Penumbra, headquartered in Alameda, CA, is among the leading healthcare players focusing on innovative therapies. Penumbra, having a global presence, primarily addresses challenging medical conditions through its broad portfolio of novel products.
Lamb Weston Holdings is a well-known supplier of sweet potato, frozen potato, vegetable products and appetizers. Lamb Weston supplies these products to retailers and restaurants across the globe and thereby secures steady cashflows.
Transportadora de Gas del Sur SA’s midstream asset portfolio has the most extensive natural gas pipeline network in Latin America. It generates stable fee-based revenues since its pipeline assets transport more than 60% of the gas consumed in Argentina.
Transportadora de Gas del Sur has witnessed upward estimate revisions for its 2023 bottom line in the past 30 days. The upward revisions are backed by its stable business model and a strong focus on creating differential shareholder value. Also, the firm has lower debt exposure than the composite stocks belonging to the industry.
Headquartered in Simi Valley, CA, AeroVironment is a well-known name in manufacturing unmanned aircraft systems and tactical missile systems. For fiscal 2024, the stock is likely to see earnings growth of 94.5%.
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/2097806/buy-these-4-low-beta-stocks-to-sail-through-market-volatility
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.
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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/performance for information about the performance numbers displayed in this press release.