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Best Low-Beta Stocks to Own Right Away: CBOE, AU, SKM & SSL
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Key Takeaways
Cboe Global Markets, AngloGold, SK Telecom and Sasol screen for low beta amid market volatility.
Cboe benefits from strong options trading, rising fees and solid finances with low debt.
AngloGold boosts earnings via cash flow, higher margins and disciplined capital allocation.
Investor sentiment has been weighed down by concerns over risky private loans and rising oil prices stemming from escalating tensions between the United States and Iran, according to CNBC.Thus, the stock market will remain volatile. Amid the increasing fears, one can also bet on low-beta stocks like Cboe Global Markets, Inc. (CBOE - Free Report) , AngloGold Ashanti (AU - Free Report) , SK Telecom (SKM - Free Report) and Sasol Limited (SSL - 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 four of the 21 stocks that qualified for the screening:
Cboe Global Markets
Among the business areas where Cboe Global Markets is growing, options trading remains active. As trading activity surges, CBOE collects more fees, which is fueling profits. The company is financially strong with low debt while consistently rewarding shareholders, thereby giving investors added confidence.
AngloGold Ashanti
AngloGold Ashanti is supported by handsome cash flow generation, increasing margins and a disciplined capital framework. Rising output, cost efficiency initiatives and key long-life assets are boosting earnings durability. Ongoing growth projects are further improving visibility.
SK Telecom
SK Telecom is a leading provider of mobile services and is now employing AI at the core of its business. While focusing strongly on AI infrastructure, digital transformation and AI services, SKM is well-positioned to create long-term value for shareholders.
Sasol Limited
Sasol has an integrated business model and is a key name in South Africa with a strong focus on energy transition. While decarbonizing its operations, Sasol is willing to protect its competitive and sustainable returns.
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Best Low-Beta Stocks to Own Right Away: CBOE, AU, SKM & SSL
Key Takeaways
Investor sentiment has been weighed down by concerns over risky private loans and rising oil prices stemming from escalating tensions between the United States and Iran, according to CNBC.Thus, the stock market will remain volatile. Amid the increasing fears, one can also bet on low-beta stocks like Cboe Global Markets, Inc. (CBOE - Free Report) , AngloGold Ashanti (AU - Free Report) , SK Telecom (SKM - Free Report) and Sasol Limited (SSL - 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 four of the 21 stocks that qualified for the screening:
Cboe Global Markets
Among the business areas where Cboe Global Markets is growing, options trading remains active. As trading activity surges, CBOE collects more fees, which is fueling profits. The company is financially strong with low debt while consistently rewarding shareholders, thereby giving investors added confidence.
AngloGold Ashanti
AngloGold Ashanti is supported by handsome cash flow generation, increasing margins and a disciplined capital framework. Rising output, cost efficiency initiatives and key long-life assets are boosting earnings durability. Ongoing growth projects are further improving visibility.
SK Telecom
SK Telecom is a leading provider of mobile services and is now employing AI at the core of its business. While focusing strongly on AI infrastructure, digital transformation and AI services, SKM is well-positioned to create long-term value for shareholders.
Sasol Limited
Sasol has an integrated business model and is a key name in South Africa with a strong focus on energy transition. While decarbonizing its operations, Sasol is willing to protect its competitive and sustainable returns.