For Immediate Release
Chicago, IL – October 1, 2019 - Stocks in this week’s article are Rent-A-Center, Inc. (RCII - Free Report) , Guess?, Inc. (GES - Free Report) , ChannelAdvisor (ECOM - Free Report) , TiVo Corporation (TIVO - Free Report) and Hallmark Financial Services Inc. (HALL - Free Report) .
Buy These 5 Low-Beta Stocks to Sidestep Market Volatility
It is a common misconception that only risky stocks offer lucrative returns. In fact, the strategy works well only in bullish market conditions.
In this article we have presented a strategy that clearly shows high returns can also be generated from stocks with lower risks, only if some parameters are considered.
Beta measures the volatility or risks to a security relative to the market (we are considering the S&P 500 here). That is, beta measures the extent to which the price of a stock moves with respect to the market.
If the beta is equal to 1 it means that the stock is as volatile as the market. So, a stock is relatively more volatile if it has beta greater than 1 and less volatile if beta is less than 1.
For example, if the beta is 1.8 then the stock will witness 80% more movement than the market. Hence, we can say that if the market goes up, the stock will outperform by 80%. Conversely, if the market plunges, the stock will lose much more value than the market.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/542575/buy-these-5-lowbeta-stocks-to-sidestep-market-volatility?art_rec=quote-stock_overview-zacks_news-ID02-txt-542575
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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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