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Low-beta stocks can provide several beneficial advantages for portfolios, including defensive qualities and stabilization when combined with high-beta stocks, helping to provide a more balanced risk profile.
And for those seeking a less volatile approach, three low-beta stocks – Interactive Brokers (IBKR - Free Report) , Vistra (VST - Free Report) , and Dr. Reddy’s Laboratories (RDY - Free Report) – could be considered. All three sport a favorable Zacks Rank, carry solid growth, and sport sound valuations.
Let’s take a closer look at each.
Dr Reddy’s Laboratories
Dr. Reddy's Laboratories, a current Zacks Rank #1 (Strong Buy), is an integrated global pharmaceutical company engaged in providing affordable and innovative medicines. The company has enjoyed favorable earnings estimate revisions across all timeframes.
Image Source: Zacks Investment Research
The company has been a consistent earnings outperformer, exceeding the Zacks Consensus EPS Estimate by an average of 40% across its last four releases. In its latest print, RDY posted a 45% EPS beat and reported revenue 3% ahead of expectations.
As shown below, the market had a strong reaction post-earnings following the latest release.
Image Source: Zacks Investment Research
In addition, RDY shares could attract income-focused investors, currently yielding 0.6% annually with a sustainable payout ratio sitting at 9% of the company’s earnings. Dividend growth is also apparent, with the payout growing by 3.6% annually over the last five years.
Interactive Brokers
Interactive Brokers Group, a Zacks Rank #2 (Buy), operates as an automated global electronic market maker and broker. The company has seen modest positive earnings estimate revisions across the board.
Image Source: Zacks Investment Research
The company’s growth profile is worth a highlight, with earnings forecasted to climb 39% on 40% higher revenues in its current year (FY23). Peeking ahead to FY24, estimates allude to a further 3% improvement in earnings paired with a modest 2% revenue bump.
Shares aren’t valuation stretched on a relative basis, with the current 16.1X forward earnings multiple nicely beneath the 20.9X five-year median and highs of 23.4X in 2022.
Image Source: Zacks Investment Research
Vistra
Vistra is a holding company that engages in the provision of electricity and power generation. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with earnings expectations increasing across nearly all timeframes.
Like many others in the Zacks Utilities sector, VST rewards its shareholders via a dividend currently yielding a solid 2.4% annually. And the company has shown a notable commitment to increasingly rewarding shareholders, boasting a 13% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
The company posted a notably strong report in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 25% and snapping a streak of negative surprises. Quarterly revenue totaled $3.2 billion, 15% ahead of expectations and improving an impressive 100% from the year-ago period.
Bottom Line
Low-beta stocks can provide many beneficial advantages for investors, including a more defensive nature and overall portfolio balance.
And for those seeking this approach, all three low-beta stocks above – Interactive Brokers (IBKR - Free Report) , Vistra (VST - Free Report) , and Dr. Reddy’s Laboratories (RDY - Free Report) – could be great considerations.
All three sport a favorable Zacks Rank, reflecting optimism among analysts.
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Navigate Volatility With These 3 Low-Beta Stocks
Low-beta stocks can provide several beneficial advantages for portfolios, including defensive qualities and stabilization when combined with high-beta stocks, helping to provide a more balanced risk profile.
And for those seeking a less volatile approach, three low-beta stocks – Interactive Brokers (IBKR - Free Report) , Vistra (VST - Free Report) , and Dr. Reddy’s Laboratories (RDY - Free Report) – could be considered. All three sport a favorable Zacks Rank, carry solid growth, and sport sound valuations.
Let’s take a closer look at each.
Dr Reddy’s Laboratories
Dr. Reddy's Laboratories, a current Zacks Rank #1 (Strong Buy), is an integrated global pharmaceutical company engaged in providing affordable and innovative medicines. The company has enjoyed favorable earnings estimate revisions across all timeframes.
Image Source: Zacks Investment Research
The company has been a consistent earnings outperformer, exceeding the Zacks Consensus EPS Estimate by an average of 40% across its last four releases. In its latest print, RDY posted a 45% EPS beat and reported revenue 3% ahead of expectations.
As shown below, the market had a strong reaction post-earnings following the latest release.
Image Source: Zacks Investment Research
In addition, RDY shares could attract income-focused investors, currently yielding 0.6% annually with a sustainable payout ratio sitting at 9% of the company’s earnings. Dividend growth is also apparent, with the payout growing by 3.6% annually over the last five years.
Interactive Brokers
Interactive Brokers Group, a Zacks Rank #2 (Buy), operates as an automated global electronic market maker and broker. The company has seen modest positive earnings estimate revisions across the board.
Image Source: Zacks Investment Research
The company’s growth profile is worth a highlight, with earnings forecasted to climb 39% on 40% higher revenues in its current year (FY23). Peeking ahead to FY24, estimates allude to a further 3% improvement in earnings paired with a modest 2% revenue bump.
Shares aren’t valuation stretched on a relative basis, with the current 16.1X forward earnings multiple nicely beneath the 20.9X five-year median and highs of 23.4X in 2022.
Image Source: Zacks Investment Research
Vistra
Vistra is a holding company that engages in the provision of electricity and power generation. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with earnings expectations increasing across nearly all timeframes.
Like many others in the Zacks Utilities sector, VST rewards its shareholders via a dividend currently yielding a solid 2.4% annually. And the company has shown a notable commitment to increasingly rewarding shareholders, boasting a 13% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
The company posted a notably strong report in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 25% and snapping a streak of negative surprises. Quarterly revenue totaled $3.2 billion, 15% ahead of expectations and improving an impressive 100% from the year-ago period.
Bottom Line
Low-beta stocks can provide many beneficial advantages for investors, including a more defensive nature and overall portfolio balance.
And for those seeking this approach, all three low-beta stocks above – Interactive Brokers (IBKR - Free Report) , Vistra (VST - Free Report) , and Dr. Reddy’s Laboratories (RDY - Free Report) – could be great considerations.
All three sport a favorable Zacks Rank, reflecting optimism among analysts.