For Immediate Release
Chicago, IL – November 5, 2019 - Stocks in this week’s article are US Foods Holding Corp.
USFD, Genesco Inc. ( GCO Quick Quote GCO - Free Report) , Thomson Reuters TRI, FTI Consulting Inc. FCN and Ellington Financial Inc. EFC. Buy These 5 Low-Beta Stocks to Tackle Market Volatility
Although there is a general belief that only risky stocks can prove profitable, such securities perform well only in bullish market conditions.
Notably, there is a strategy which clearly shows that low-beta stocks can also generate lucrative returns if some specific 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/602203/buy-these-5-lowbeta-stocks-to-tackle-market-volatility 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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See these high-potential stocks free >>.
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Contact: Jim Giaquinto
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