We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Investors are shifting their focus to sectors like industrials and consumer discretionary, which typically thrive during periods of economic growth and recovery, reflecting optimism about the broader economy. Additionally, the strong performance of small-cap stocks indicates a growing risk appetite.
However, elevated valuations in certain sectors, particularly technology, could face pressure. In this context, building a portfolio of low-beta stocks could be a wise strategy to mitigate potential volatility in the market.
Stocks like Sprouts Farmers Market Inc., ProAssurance Corp., Stride Inc. and Calavo Growers Inc are worth betting on.
What Does Beta of a Stock Measure?
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 among 13 stocks that qualified the screening:
Sprouts Farmers Market
Increasing customer engagement and solid comparable store sales are benefiting Sprouts Farmers Market. SFM is positioning itself for continued growth with plans to open 33 new stores in 2024 and a projected comparable store sales growth of 8% to 10% for the fourth quarter of 2024.
ProAssurance
ProAssurance has seen an increase in renewal pricing in its medical professional liability business, indicating that its pricing strategy aligns with the rising claims costs. Also, the company has a solid financial position, as evidenced by its balance sheet, which shows that more than 90% of its investment portfolio consists of investment-grade fixed maturities.
Stride
Stride maintains a stable business model by revolutionizing the educational experiences of individuals through the utilization of innovative, high-quality and technology-enabled educational solutions.
Calavo Growers
Calavo Growers demonstrated operational flexibility and market resilience through strong performance in its avocado business, even amid temporary supply disruptions from Mexico. By reallocating proceeds from the sale of its Fresh Cut business, the company plans to focus on high-margin growth areas, specifically its core avocado and guacamole operations.
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.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks.com featured highlights include Sprouts Farmers, ProAssurance, Stride and Calavo Growers
For Immediate Release
Chicago, IL – November 26, 2024 – Stocks in this week’s article are Sprouts Farmers Market Inc. (SFM - Free Report) , ProAssurance Corp. (PRA - Free Report) , Stride Inc. (LRN - Free Report) and Calavo Growers Inc (CVGW - Free Report) .
Buy 4 Low-Beta Stocks to Beat Market Volatility: SFM, PRA, LRN, CVGW
Investors are shifting their focus to sectors like industrials and consumer discretionary, which typically thrive during periods of economic growth and recovery, reflecting optimism about the broader economy. Additionally, the strong performance of small-cap stocks indicates a growing risk appetite.
However, elevated valuations in certain sectors, particularly technology, could face pressure. In this context, building a portfolio of low-beta stocks could be a wise strategy to mitigate potential volatility in the market.
Stocks like Sprouts Farmers Market Inc., ProAssurance Corp., Stride Inc. and Calavo Growers Inc are worth betting on.
What Does Beta of a Stock Measure?
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 among 13 stocks that qualified the screening:
Sprouts Farmers Market
Increasing customer engagement and solid comparable store sales are benefiting Sprouts Farmers Market. SFM is positioning itself for continued growth with plans to open 33 new stores in 2024 and a projected comparable store sales growth of 8% to 10% for the fourth quarter of 2024.
ProAssurance
ProAssurance has seen an increase in renewal pricing in its medical professional liability business, indicating that its pricing strategy aligns with the rising claims costs. Also, the company has a solid financial position, as evidenced by its balance sheet, which shows that more than 90% of its investment portfolio consists of investment-grade fixed maturities.
Stride
Stride maintains a stable business model by revolutionizing the educational experiences of individuals through the utilization of innovative, high-quality and technology-enabled educational solutions.
Calavo Growers
Calavo Growers demonstrated operational flexibility and market resilience through strong performance in its avocado business, even amid temporary supply disruptions from Mexico. By reallocating proceeds from the sale of its Fresh Cut business, the company plans to focus on high-margin growth areas, specifically its core avocado and guacamole operations.
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/2374953/buy-4-low-beta-stocks-sfm-pra-lrn-cvgw-to-beat-market-volatility
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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/performance for information about the performance numbers displayed in this press release.