For Immediate Release
Chicago, IL – August 10, 2023 – Stocks in this week’s article are Trip.com Group Ltd. (
TCOM Quick Quote TCOM - Free Report) , Dr. Reddy's Laboratories Ltd. ( RDY Quick Quote RDY - Free Report) , Sterling Check Corp. ( STER Quick Quote STER - Free Report) and MINISO Group Holding Ltd. ( MNSO Quick Quote MNSO - Free Report) . Buy These 4 Low-Beta Stocks to Counter the Choppy Market
Investors are now concerned with several events dampening the ebullient market's mood. Among them, the recent development of downgrading the credit ratings of several small to mid-sized U.S. banks by Moody's is alarming. Thus, investors are demanding portfolio protection from expected wild market swings. Hence, creating a portfolio of low-beta stocks is paramount since the securities will deliver healthy returns and shield against choppy market conditions.
In this regard, stocks like
Trip.com Group Ltd., Dr. Reddy's Laboratories Ltd., Sterling Check Corp. and MINISO Group Holding Ltd. 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 11 that qualified for the screening:
Trip.com Group Limited is well known for providing global travel services. Owing to the relaxation of travel restrictions, the global travel industry is recovering, which in turn is aiding TCOM. Dr. Reddy's Laboratories has global operations in 74 countries. Analysts are bullish on RDY as its North American generic business and its emerging markets' generic operations will likely continue to thrive. MINISO Group Holding is a leading retailer and wholesaler of lifestyle products. MINISO Group believes that in 2023, it will be able to open more than 250-350 stores (its original goal) in China. This could be possible, thanks to a bullish business outlook from its retail partners.
The background and identity screening space is growing rapidly, creating opportunities for
Sterling Check. STER has been working on its key focus areas this year, like generating organic revenues with cost structure optimizations.
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/2134321/buy-these-4-low-beta-stocks-to-counter-the-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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