U.S. Markets open in 3 hrs 18 mins

Should You Be Concerned About FONAR Corporation’s (NASDAQ:FONR) Historical Volatility?

Simply Wall St

If you’re interested in FONAR Corporation (NASDAQ:FONR), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.

Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that ‘Volatility is far from synonymous with risk’, beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

See our latest analysis for FONAR

What FONR’s beta value tells investors

Looking at the last five years, FONAR has a beta of 0.83. The fact that this is well below 1 indicates that its share price movements haven’t historically been very sensitive to overall market volatility. This means that — if history is a guide — buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how FONAR fares in that regard, below.

NasdaqCM:FONR Income Statement, March 14th 2019

How does FONR’s size impact its beta?

FONAR is a rather small company. It has a market capitalisation of US$148m, which means it is probably under the radar of most investors. Companies with market capitalisations around this size often show poor correlation with the broader market because market volatility is overshadowed by company specific events, or other factors. It’s worth checking to see how often shares are traded, because very small companies with very low beta values are often only thinly traded.

What this means for you:

One potential advantage of owning low beta stocks like FONAR is that your overall portfolio won’t be too sensitive to overall market movements. However, this can be a blessing or a curse, depending on what’s happening in the broader market. This article aims to educate investors about beta values, but it’s well worth looking at important company-specific fundamentals such as FONAR’s financial health and performance track record. I highly recommend you dive deeper by considering the following:

  1. Future Outlook: What are well-informed industry analysts predicting for FONR’s future growth? Take a look at our free research report of analyst consensus for FONR’s outlook.
  2. Past Track Record: Has FONR been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of FONR’s historicals for more clarity.
  3. Other Interesting Stocks: It’s worth checking to see how FONR measures up against other companies on valuation. You could start with this free list of prospective options.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

  • Tesla will mark the beginning of the end for this bull market, warns Ralph Nader
    Business
    MarketWatch

    Tesla will mark the beginning of the end for this bull market, warns Ralph Nader

    Apparently so, according to consumer advocate and former presidential candidate Ralph Nader, who issued a stark warning this week, not only on the electric-car maker's pricey stock, but on the stock market as a whole. “Deep in debt, selling less than 400,000 vehicles last year and challenged by several competing electric car models in 2020, Tesla's stock valuation stunningly exceeds VW which sold over 10 million vehicles last year,” Nader added in a follow-up tweet. Of course, his stance didn't sit well with Tesla fans.

  • Retirement: What Happens If a Spouse Dies?
    Business
    Investopedia

    Retirement: What Happens If a Spouse Dies?

    This form names the person or people who will receive your IRA and in what proportions. You can amend the form at any time, but whoever is on the form upon your death will receive the funds—even if they are an ex-spouse or a disinherited child. "If you name multiple people as beneficiaries of one retirement plan, they all take required minimum distributions (RMDs) based on the life expectancy of the eldest beneficiary (i.e., the person who has to take out the largest distributions).

  • Goldman Sachs: These 3 Stocks Are Poised to Surge by at Least 15%
    Business
    TipRanks

    Goldman Sachs: These 3 Stocks Are Poised to Surge by at Least 15%

    The stock analysts at Goldman Sachs have been busy. All of this is bread and butter for TipRanks, a platform that makes financial recommendations accountable, and expensive institutional datasets available, to all investors. Three tech stocks that usually fly under the radar – but Goldman sees them all with more than 15% upside potential in the coming year.

  • When Should You Buy The Walt Disney Company (NYSE:DIS)?
    Business
    Simply Wall St.

    When Should You Buy The Walt Disney Company (NYSE:DIS)?

    The Walt Disney Company (NYSE:DIS) saw significant share price movement during recent months on the NYSE, rising to highs of US$152 and falling to the lows of US$129. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Walt Disney's current trading price of US$142 reflective of the actual value of the large-cap?

  • Britain's Prince Charles appears to snub Pence
    World
    Associated Press Videos

    Britain's Prince Charles appears to snub Pence

    Britain's Prince Charles appeared to snub U.S. Vice President Mike Pence on Thursday during his arrival to the World Holocaust Forum event. Jan.

  • Business
    Thomson Reuters StreetEvents

    Edited Transcript of FCEL earnings conference call or presentation 22-Jan-20 3:00pm GMT

    Q4 2019 FuelCell Energy Inc Earnings Call

  • FICO scores, the 'most important numbers in your financial life,' are about to change
    Business
    USA TODAY

    FICO scores, the 'most important numbers in your financial life,' are about to change

    Americans who fall behind on loan payments, rack up rising debt or take out personal loans to consolidate debt will likely see their credit scores fall under updates planned for the popular FICO scores, according to Fair Isaac Corp., the creator FICO scores. “Most consumers will see less than a 20-point swing in either direction,” David Shellenberger, FICO's vice president, product management, scores, said in a statement on Thursday. About 40 million, he said, will see a sharper shift upward in scores, and 40 million will be hit with a similar-sized drop, Shellenberger said.

  • Business
    TheStreet.com

    7 Low-Risk Investments With High Returns in 2020

    The classic risk-free investment is Treasury securities, but even they carry some degree of price risk from changes in interest rates, though the risk of default is slim to none. To be clear, dividend-paying stocks do carry risk as they are still subject to the same factors that impact the stock market. Investing for dividend yield is about finding those companies that pay higher dividends as a source of yield.

  • Ericsson shares slump as earnings weighed by higher costs
    Business
    MarketWatch

    Ericsson shares slump as earnings weighed by higher costs

    Shares in Ericsson AB (ERIC) slumped as much as 8.2% in early trade Friday after seeing fourth-quarter earnings weighed by higher costs. The telecommunications equipment company (ERIC)(SE:ERIC)(SE:ERIC) saw costs rise in the quarter as it invested in acquisitions, digitization, security and ethics and compliance. Citi analyst Amit Harchandani said he expects consensus 2020 earnings before interest and tax expectations at Ericsson to move lower by 5%-10% on the higher operating expenditure.

  • These 10 Rules Made Warren Buffett a Billionaire
    Business
    MoneyWise

    These 10 Rules Made Warren Buffett a Billionaire

    Warren Buffett may be worth tens of billions, but he still lives simply, and his strategies for smart investing and amassing wealth aren't too complicated either. Buffett's first key to prosperity has little to do with picking stocks. "Without good communication skills, you won't be able to convince people to follow you even though you see over the mountain and they don't," Buffett once told a Stanford MBA student.

  • Dow Jones Futures: Intel, Atlassian Soar On Earnings, Boost 3 Leaderboard Stocks; Broadcom Rises On Apple Deal
    Business
    Investor's Business Daily

    Dow Jones Futures: Intel, Atlassian Soar On Earnings, Boost 3 Leaderboard Stocks; Broadcom Rises On Apple Deal

    Dow Jones futures and S&P 500 futures edged higher Thursday, while Nasdaq futures rose modestly, after the stock market rally showed continued resilience amid an expanding China coronavirus crisis. Chip giant Intel and software maker Atlassian crushed earnings views. Intel stock jumped in extended trade, with AMD stock and Nvidia stock also getting a lift.

  • Mark Cuban: Where the ‘frothy’ market goes from here depends on one thing
    Business
    MarketWatch

    Mark Cuban: Where the ‘frothy’ market goes from here depends on one thing

    “Interest rates were a lot different back then,” he continued. A day earlier, fellow billionaire Paul Tudor Jones, from the sidelines of the World Economic Forum in Davos, said we are currently in the “craziest monetary and fiscal mix in history,” and, at least to him, it's reminiscent of 1999. What happens next in the stock market, he said, depends where interest rates go from here.

  • GE Stock Rebounds From Recent Slump As 'The Story Has Shifted'
    Business
    Investor's Business Daily

    GE Stock Rebounds From Recent Slump As 'The Story Has Shifted'

    General Electric is in a "budding turnaround" and should see minimal disruption from the Boeing 737 Max crisis, Morgan Stanley said. GE stock rallied back near a buy point, snapping a string of down days. Morgan Stanley analyst Joshua Pokrzywinski on Wednesday hiked his GE stock rating to overweight from equal weight and the price target to 14 from 11.

  • Aurora Cannabis Could Recover in 2020 if the Stars Align
    Business
    InvestorPlace

    Aurora Cannabis Could Recover in 2020 if the Stars Align

    The Canadian cannabis sector has never marketed itself as a stable, worry-free opportunity. Once a bright spot in legal marijuana due to its massive international footprint, ACB stock plummeted in 2019 as fiscal concerns weighed more heavily than the company's potential opportunities. Since the last session of 2019, ACB stock appeared determined to kill every holding hands' patience.

  • Surgical Robotics Leader Dives As Sales, Earnings Growth Decelerate
    Business
    Investor's Business Daily

    Surgical Robotics Leader Dives As Sales, Earnings Growth Decelerate

    Surgical robotics giant Intuitive Surgical reported decelerating sales and earnings growth Thursday, leading ISRG stock to slide in after-hours trading. During the fourth quarter, Intuitive Surgical profit jumped nearly 18% to $3.48 a share. Likewise, the surgical robotics company pulled in $1.28 billion in fourth-quarter sales, growing 22% year over year to beat expectations for $1.2 billion.

  • Intel enjoys big rebound in cloud, but the future is still hazy
    Business
    MarketWatch

    Intel enjoys big rebound in cloud, but the future is still hazy

    Intel Corp. wrapped up a rocky 2019 by reporting record sales thanks to a big jump in sales of chips for data centers and cloud computing, but that rebound may just be temporary. The chip giant reported Thursday that its quarterly revenue surged past $20 billion for the first time ever at the end of 2019, fueled in part by a 19% jump in data center sales to $7.2 billion in the fourth quarter, a record performance for Intel's (INTC) second largest business. The data center arena has been feast or famine for the entire chip industry, as the sporadic ups and downs of hyperscaler companies and public cloud service providers have created doubts about where the cloud boom is headed.

  • What to watch in the markets: Friday, Jan 24
    Business
    Yahoo Finance Video

    What to watch in the markets: Friday, Jan 24

    Yahoo Finance's Myles Udland highlights the day's market action and upcoming earnings to drive headlines.

  • Qorvo and Skyworks Weigh Bids for Broadcom’s RF Chip Unit
    Business
    Bloomberg

    Qorvo and Skyworks Weigh Bids for Broadcom’s RF Chip Unit

    Semiconductor makers Qorvo Inc. and Skyworks Solutions Inc. are weighing bids for Broadcom Inc.

  • Wells Fargo former CEO John Stumpf fined $17.5 million, banned for life from banking
    Business
    American City Business Journals

    Wells Fargo former CEO John Stumpf fined $17.5 million, banned for life from banking

    Wells Fargo former Chairman and CEO John Stumpf has agreed to pay a fine of $17.5 million and accept a lifetime ban from the banking industry in a settlement the Office of the Comptroller of the Currency announced Thursday. Hope Hardison, Wells Fargo's (NYSE: WFC) former chief administrative officer and director of corporate human resources, agreed to pay a fine of $2.25 million and a personal cease and desist order that requires her to refrain from certain conduct in the future. The bank's former Chief Risk Officer Michael Loughlin will pay a fine of $1.25 million and a personal cease and desist order.

  • Analysts: These 3 “Strong Buy” Penny Stocks Could Gain Over 50%
    Business
    TipRanks

    Analysts: These 3 “Strong Buy” Penny Stocks Could Gain Over 50%

    Using TipRanks' Stock Screener tool, we filtered the results by current share price, analyst consensus and price target upside to track down 3 penny stocks that have amassed enough analyst support to earn a “Strong Buy” consensus rating. Adding to the good news, each pick boasts over 50% upside potential. Let's dive in.

  • Business
    NerdWallet

    Who Should Consider a Roth Conversion Now?

    The new law requires most IRAs inherited by people other than spouses to be drained within 10 years, which can lead to much higher tax bills for heirs. Spouses still have the option of treating an inherited IRA as their own and taking money out over their lifetimes. At the same time, the Secure Act delayed when required minimum distributions have to begin for most retirement account owners, increasing the age for mandatory distributions from 70 1/2 to 72.

  • Store closings pile up: With 1,200 closures already announced, retailers face another grim year
    Business
    USA TODAY

    Store closings pile up: With 1,200 closures already announced, retailers face another grim year

    National chains Macy's, J.C. Penney, Papyrus, Express and Pier 1 Imports, as well as other retailers, have collectively announced 1,218 store closures this year, according to global marketing research firm Coresight Research. The fallout comes after a year in which retailers closed more than 9,200 stores, according to Coresight. Those included the liquidation of Payless ShoeSource, Fred's, Gymboree and Charlotte Russe and mass closures by Family Dollar, Forever 21, Charming Charlie, Sears, Kmart, A.C. Moore and GameStop.

  • A Tale of 3 Healthcare Stocks – 2 to Buy, and 1 to Sell
    Business
    TipRanks

    A Tale of 3 Healthcare Stocks – 2 to Buy, and 1 to Sell

    So when Oppenheimer announced on Wednesday that it's taken a good hard look at the healthcare industry, and come up with two stocks it's confident it can recommend buying -- and one it's pretty sure should be sold -- this is advice investors should give careful consideration. Let's find out what Oppenheimer has to say, beginning with: Regeneron is one of a strange breed in biotech -- a company that actually makes money. years in business, Tarrytown, NY-based Regeneron develops medicines to treat a wide array of illnesses, everything from age-related macular degeneration and diabetic retinopathy (Eylea) to atopic dermatitis (Dupixent) to atherosclerotic cardiovascular disease (Praluent) and l...

  • 5G to IoT: 3 Long-Term Growth Stocks in the Tech Sector
    Business
    GuruFocus.com

    5G to IoT: 3 Long-Term Growth Stocks in the Tech Sector

    The tech industry is still in the early stages of rolling out 5G networks, but according to a Bank of America report, the 5G semiconductors market is expected to boom from $593 billion in 2018 to $19 billion by 2022. The market has already begun pricing in gains for the most popular stocks associated with 5G technology, such as smartphone producers Apple (NASDAQ:AAPL) and wireless communication giants such as Verizon (NYSE:VZ) and AT&T (NYSE:T). As the world becomes increasingly connected on the foundation of 5G, companies whose products are geared towards the so-called Internet of Things (IoT) are more likely to see stronger growth than their competitors.

  • Evaluating STMicroelectronics N.V.’s (EPA:STM) Investments In Its Business
    Business
    Simply Wall St.

    Evaluating STMicroelectronics N.V.’s (EPA:STM) Investments In Its Business

    Today we'll look at STMicroelectronics N.V. (EPA:STM) and reflect on its potential as an investment. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. First of all, we'll work out how to calculate ROCE.