For Immediate Release
Chicago, IL – August 6, 2018 - Stocks in this week’s article include: G-III Apparel Group, Ltd. (GIII - Free Report) , Rocky Brands, Inc. (RCKY - Free Report) , Vail Resorts, Inc. (MTN - Free Report) , Vanda Pharmaceuticals Inc. (VNDA - Free Report) and IntriCon Corp. (IIN - Free Report) .
Screen of the Week of Zacks Investment Research:
5 Low-Beta Stocks to Take Refuge in a Volatile Market
It is not a thumb rule that only risky securities can generate lucrative returns, although the crowd believes that it is. Risky stocks reward investors only when the market is on a bullish path.
We have created a strategy that clearly shows that less risky stocks could also generate handsome returns if some parameters are considered.
Meaning of Beta
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%, the portfolio return plummets 60% which is surely a matter of concern.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/315804/5-lowbeta-stocks-to-take-refuge-in-a-volatile-market
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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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
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Contact: Jim Giaquinto
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