For Immediate Release
Chicago, IL – March 12, 2020 - Stocks in this week’s article are Turning Point Brands Inc. (TPB - Free Report) , Sprouts Farmers Market, Inc. (SFM - Free Report) , Newmont Corp. (NEM - Free Report) and Enphase Energy Inc (ENPH - Free Report) .
Coronavirus Spreads Panic: 5 Low-Beta Stocks to the Rescue
The stock market has become extremely volatile since investors doubt central banks and governments’ ability to contain the novel coronavirus-led massive economic losses across most sectors.
Hence, it is of paramount importance to create a portfolio of low-beta stocks that are protected from market volatility and have the potential to deliver healthy returns.
Beta measures the volatility or risk of a particular asset in comparison 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 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 beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20% the stock will sink 60%, which is devastating.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/807616/coronavirus-spreads-panic-5-lowbeta-stocks-to-the-rescue
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