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 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.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Court Ruling & Tariff Uncertainty: Time to Bet on POST, TME & KNSA?
Read MoreHide Full Article
Key Takeaways
A federal appeals court ruled a large share of Trump's worldwide tariffs unlawful, spurring volatility.
Low-beta stocks like Post, Tencent Music and Kiniksa are highlighted as safer portfolio choices.
Post reshapes its portfolio, TME expands subscriptions and Kiniksa advances its heart drug ARCALYST.
The U.S. stock market is expected to remain volatile as uncertainty prevails following the CNBC news that a federal appeals court has said that a significant proportion of President Donald Trump’s worldwide tariffs is unlawful.
Thus, to safeguard their portfolio from the choppy and uncertain market, investors should bet on low-beta stocks like Post Holdings, Inc. (POST - Free Report) , Tencent Music Entertainment Group (TME - Free Report) and Kiniksa Pharmaceuticals International, plc (KNSA - Free Report) .
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.
Screening Criteria Using Research Wizard:
We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.
Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month.
Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable.
Price Greater Than or Equal to $5: They must all be trading at a minimum of $5 or higher.
Zacks Rank Equal to 1: Zacks Rank #1 (Strong Buy) stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are three of the 19 stocks that qualified for the screening:
Post Holdings
To create value, Post Holdings is reshaping its portfolio with the recent announcement of a deal to divest its 8th Avenue’s pasta business for $375 million in cash. POST will, however, not be divesting its nut butter, granola and fruit & nut businesses, as it believes these businesses will align better with its operations in terms of higher earnings and cost synergies.
Tencent Music Entertainment
Tencent Music will continue to grow thanks to its expanding music subscription business, banking on a base of more than 124 million paying subscribers and a massive 15 million Super VIP (SVIP) members. TME is also banking on its booming advertising business, backed by the company’s new ad formats and key shopping events.
Kiniksa Pharmaceuticals
For the treatment of recurrent pericarditis, a condition characterized by a painful heart with an inflamed lining around the heart, Kiniksa Pharmaceuticals has become a leading player. This is because KNSA’s drug ARCALYST is the only option for treating the tough heart condition.
You can get the rest of the stocks on this list by signing up now for your two-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.
Image: Bigstock
Court Ruling & Tariff Uncertainty: Time to Bet on POST, TME & KNSA?
Key Takeaways
The U.S. stock market is expected to remain volatile as uncertainty prevails following the CNBC news that a federal appeals court has said that a significant proportion of President Donald Trump’s worldwide tariffs is unlawful.
Thus, to safeguard their portfolio from the choppy and uncertain market, investors should bet on low-beta stocks like Post Holdings, Inc. (POST - Free Report) , Tencent Music Entertainment Group (TME - Free Report) and Kiniksa Pharmaceuticals International, plc (KNSA - Free Report) .
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.
Screening Criteria Using Research Wizard:
We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.
Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month.
Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable.
Price Greater Than or Equal to $5: They must all be trading at a minimum of $5 or higher.
Zacks Rank Equal to 1: Zacks Rank #1 (Strong Buy) stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are three of the 19 stocks that qualified for the screening:
Post Holdings
To create value, Post Holdings is reshaping its portfolio with the recent announcement of a deal to divest its 8th Avenue’s pasta business for $375 million in cash. POST will, however, not be divesting its nut butter, granola and fruit & nut businesses, as it believes these businesses will align better with its operations in terms of higher earnings and cost synergies.
Tencent Music Entertainment
Tencent Music will continue to grow thanks to its expanding music subscription business, banking on a base of more than 124 million paying subscribers and a massive 15 million Super VIP (SVIP) members. TME is also banking on its booming advertising business, backed by the company’s new ad formats and key shopping events.
Kiniksa Pharmaceuticals
For the treatment of recurrent pericarditis, a condition characterized by a painful heart with an inflamed lining around the heart, Kiniksa Pharmaceuticals has become a leading player. This is because KNSA’s drug ARCALYST is the only option for treating the tough heart condition.
You can get the rest of the stocks on this list by signing up now for your two-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.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.