For Immediate Release
Chicago, IL – September 21, 2018 - Stocks in this week’s article include: G-III Apparel Group, Ltd. (GIII - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) , US Ecology, Inc. (ECOL - Free Report) , Penumbra, Inc. (PEN - Free Report) and North American Construction Group Ltd. (NOA - Free Report) .
Screen of the Week of Zacks Investment Research:
Brave Market Volatility with These 5 Low-Beta Stocks
It is a common misconception that only risky investments prove rewarding. The strategy works best when the market is bullish. But we shouldn't forget that investing in these stocks may lead to huge losses during market downturns.
After thorough research, we have created a strategy which clearly shows that a portfolio of less risky stocks can also generate impressive returns when a few parameters are considered.
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% then 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/324135/brave-market-volatility-with-these-5-lowbeta-stocks
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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
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Contact: Jim Giaquinto
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