For Immediate Release
Chicago, IL – December 6, 2017 - Stocks in this week’s article Skechers U.S.A., Inc. (SKX - Free Report) , The Boston Beer Company, Inc. (SAM - Free Report) , Pilgrim's Pride Corp. (PPC - Free Report) , Movado Group, Inc. (MOV - Free Report) and Triple-S Management Corporation (GTS - Free Report) .
Include 5 Low-Beta Stocks and Nullify Market Volatility
Following the crowd will not take you anywhere when it comes to the investment field. People simply trail the thumb rule that only risky stocks generate lucrative returns. The strategy works well when market is bullish but the opposite scenario should also be taken into account.
After intense research we have developed a strategy which shows that handsome returns can also be generated from less risky stocks.
Beta indicates the volatility of a particular stock with respect to the market. In other words, beta measures the extent of stock price movement relative to the market (we are considering S&P 500 here).
If a company has a beta of 1, it means that the relative volatility of the stock is the same as that of the S&P 500. In the same way, if the stock’s beta is greater than 1 then it is more volatile compared to the market. Conversely, a beta below 1 signifies less volatility.
Now, if a portfolio’s beta is 3, it is three times more volatile than the market. Hence, if the market is projected to give 20% return, the portfolio will then definitely contribute 60% return which is amazing.
However, the opposite case also holds true. If the market slips 20% then the portfolio return plummets 60% which is surely a matter of concern.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/285008/include-5-lowbeta-stocks-amp-nullify-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.
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Strong Stocks that Should Be in the News
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