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3 Best Low-Beta Stocks to Buy Right Away: LQDA, FLXS & AGX
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Key Takeaways
LQDA is seeing rapid YUTREPIA adoption, profitability, positive cash flow and a strong cash position.
Flexsteel's strong cash balances and debt-free balance sheet may help it navigate business cycles.
AGX has no debt and a $2.8B backlog as demand rises for power infrastructure tied to data centers.
Though the United States and Iran reached an interim deal last week, significant uncertainty still persists. With fears dominating the market, it is ideal for investors to increase their allocation to low-beta stocks. Stocks that may attract investors' attention are Liquidia Corporation (LQDA - Free Report) , Flexsteel Industries, Inc. (FLXS - Free Report) and Argan, Inc. (AGX - 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 (Strong Buy):Zacks Rank #1 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 12 stocks that qualified for the screening:
Liquidia
Liquidia is experiencing rapid growth in YUTREPIA adoption, with increasing patient referrals, expanding prescriber base and rising market share. The company has achieved profitability and is generating positive cash flow, supported by a strong cash position. It is also pursuing expansion into additional indications and larger market opportunities through ongoing and planned clinical developments.
Flexsteel Industries
Flexsteel Industries is a well-known manufacturer of furniture in the United States. The company is a maker and seller of furniture through many retailers and online channels. The company’s robust balance sheet, as reflected in strong cash balances and no debt load, will likely help it to sail through every cycle of the business environment.
Argan
Argan is well-positioned to capitalize on the rising demand for new power infrastructure for data centers, factories and electric systems. With no debt load and a solid $2.8 billion backlog, the company’s business outlook seems promising.
View the Zacks #1 Rank List
Image: Bigstock
3 Best Low-Beta Stocks to Buy Right Away: LQDA, FLXS & AGX
Key Takeaways
Though the United States and Iran reached an interim deal last week, significant uncertainty still persists. With fears dominating the market, it is ideal for investors to increase their allocation to low-beta stocks. Stocks that may attract investors' attention are Liquidia Corporation (LQDA - Free Report) , Flexsteel Industries, Inc. (FLXS - Free Report) and Argan, Inc. (AGX - 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 (Strong Buy):Zacks Rank #1 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 12 stocks that qualified for the screening:
Liquidia
Liquidia is experiencing rapid growth in YUTREPIA adoption, with increasing patient referrals, expanding prescriber base and rising market share. The company has achieved profitability and is generating positive cash flow, supported by a strong cash position. It is also pursuing expansion into additional indications and larger market opportunities through ongoing and planned clinical developments.
Flexsteel Industries
Flexsteel Industries is a well-known manufacturer of furniture in the United States. The company is a maker and seller of furniture through many retailers and online channels. The company’s robust balance sheet, as reflected in strong cash balances and no debt load, will likely help it to sail through every cycle of the business environment.
Argan
Argan is well-positioned to capitalize on the rising demand for new power infrastructure for data centers, factories and electric systems. With no debt load and a solid $2.8 billion backlog, the company’s business outlook seems promising.