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Best Low-Beta Stocks to Own Right Away: GOLD, CBOE, SKM & AGRO
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Key Takeaways
Low-beta stocks like GOLD, CBOE, SKM and AGRO may offer stability during periods of rising market volatility.
CBOE benefits from strong options trading activity, boosting fee income while maintaining low debt.
AGRO produces over 1M MWh of renewable electricity annually, lowering reliance on external power.
Investors are worried about the U.S.-Israeli war on Iran as the Middle East tension could hurt the global financial markets and the economies. Thus, the stock market will remain volatile. Amid rising fears, one can bet on low-beta stocks like Gold.com Inc (GOLD - Free Report) , Cboe Global Markets, Inc. (CBOE - Free Report) , SK Telecom (SKM - Free Report) and Adecoagro S.A. (AGRO - 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 25 stocks that qualified for the screening:
Gold.com
Gold.com has established a strong foothold through its comprehensive approach to the precious metals market. The company continues to benefit from the sustained upward trend in gold prices as well as its growing international footprint. Its multiple revenue channels enable it to capitalize on fluctuations in the market, helping strengthen its position within the industry.
Cboe Global Markets
Among the business areas where Cboe Global 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.
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.
Adecoagro S.A.
From agricultural waste and other renewable sources, Adecoagro SA generates more than 1 million megawatt-hours of renewable electricity annually. Owing to this, AGRO is capable of utilizing a significant proportion of the energy it consumes from its own renewable energy sources. This is why the company is reducing its expenses and dependence on an external source of energy.
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Best Low-Beta Stocks to Own Right Away: GOLD, CBOE, SKM & AGRO
Key Takeaways
Investors are worried about the U.S.-Israeli war on Iran as the Middle East tension could hurt the global financial markets and the economies. Thus, the stock market will remain volatile. Amid rising fears, one can bet on low-beta stocks like Gold.com Inc (GOLD - Free Report) , Cboe Global Markets, Inc. (CBOE - Free Report) , SK Telecom (SKM - Free Report) and Adecoagro S.A. (AGRO - 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 25 stocks that qualified for the screening:
Gold.com
Gold.com has established a strong foothold through its comprehensive approach to the precious metals market. The company continues to benefit from the sustained upward trend in gold prices as well as its growing international footprint. Its multiple revenue channels enable it to capitalize on fluctuations in the market, helping strengthen its position within the industry.
Cboe Global Markets
Among the business areas where Cboe Global 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.
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.
Adecoagro S.A.
From agricultural waste and other renewable sources, Adecoagro SA generates more than 1 million megawatt-hours of renewable electricity annually. Owing to this, AGRO is capable of utilizing a significant proportion of the energy it consumes from its own renewable energy sources. This is why the company is reducing its expenses and dependence on an external source of energy.