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LQDA benefits from rising YUTREPIA adoption, broader referrals and positive cash flow.
FLXS has strong cash balances and no debt, supporting resilience across business cycles.
AGX holds a $2.8 billion backlog, while ELMD sees growth from untreated bronchiectasis patients.
Iran is reportedly seeking negotiations after the U.S. strikes, but President Donald Trump says it is still unclear whether peace will hold or the conflict will resume. Thus, uncertainty remains, and the market will likely be volatile. With fears dominating the market, it is ideal for investors to increase their allocation to low-beta stocks. Stocks that seem to be good bets now are Liquidia Corporation (LQDA - Free Report) , Flexsteel Industries, Inc. (FLXS - Free Report) , Electromed, Inc. (ELMD - 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 13 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.
Electromed
Electromed makes SmartVest, a medical device that helps people with lung conditions clear mucus from their airways. The company sees significant growth potential because many bronchiectasis patients remain untreated, while insurance coverage and physician awareness continue to improve. Strong profitability, a debt-free balance sheet and a healthy cash position provide a solid foundation for future growth.
View the Zacks #1 Rank List
Image: Bigstock
4 Low-Beta Stocks to Minimize Portfolio Risk: LQDA, FLXS, ELMD & AGX
Key Takeaways
Iran is reportedly seeking negotiations after the U.S. strikes, but President Donald Trump says it is still unclear whether peace will hold or the conflict will resume. Thus, uncertainty remains, and the market will likely be volatile. With fears dominating the market, it is ideal for investors to increase their allocation to low-beta stocks. Stocks that seem to be good bets now are Liquidia Corporation (LQDA - Free Report) , Flexsteel Industries, Inc. (FLXS - Free Report) , Electromed, Inc. (ELMD - 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 13 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.
Electromed
Electromed makes SmartVest, a medical device that helps people with lung conditions clear mucus from their airways. The company sees significant growth potential because many bronchiectasis patients remain untreated, while insurance coverage and physician awareness continue to improve. Strong profitability, a debt-free balance sheet and a healthy cash position provide a solid foundation for future growth.