U.S. Markets closed

Does The Tivity Health, Inc. (NASDAQ:TVTY) Share Price Tend To Follow The Market?

Simply Wall St

If you own shares in Tivity Health, Inc. (NASDAQ:TVTY) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market.

Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.

See our latest analysis for Tivity Health

What TVTY's beta value tells investors

Given that it has a beta of 1.20, we can surmise that the Tivity Health share price has been fairly sensitive to market volatility (over the last 5 years). If the past is any guide, we would expect that Tivity Health shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Tivity Health's revenue and earnings in the image below.

NasdaqGS:TVTY Income Statement, December 11th 2019

Does TVTY's size influence the expected beta?

Tivity Health is a small company, but not tiny and little known. It has a market capitalisation of US$948m, which means it would be on the radar of intstitutional investors. It is quite common to see a small-cap stock with a beta greater than one. In part, that's because relatively few investors can influence the price of a smaller company, compared to a large company.

What this means for you:

Since Tivity Health tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. In order to fully understand whether TVTY is a good investment for you, we also need to consider important company-specific fundamentals such as Tivity Health’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 TVTY’s future growth? Take a look at our free research report of analyst consensus for TVTY’s outlook.
  2. Past Track Record: Has TVTY 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 TVTY's historicals for more clarity.
  3. Other Interesting Stocks: It's worth checking to see how TVTY measures up against other companies on valuation. You could start with this free list of prospective options.

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.

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. Thank you for reading.

  • Best Buy launches investigation into CEO Corie Barry
    Business
    American City Business Journals

    Best Buy launches investigation into CEO Corie Barry

    Best Buy Co. Inc. CEO Corie Barry is under investigation by the retailer's board after it received an anonymous letter alleging an inappropriate romantic relationship between Barry and another executive before she became CEO last year. It claimed that she had been romantically involved with former Best Buy Senior Vice President Karl Sanft in the period before she took over as the company's CEO, the newspaper said. Best Buy's board has hired law firm Sidley Austin LLP as part of the investigation.

  • What's the Average 401(k) Balance by Age?
    Business
    Investopedia

    What's the Average 401(k) Balance by Age?

    It can be hard to determine exactly how much you'll need for your own post-career days, but finding out how others are planning—or not—can offer a benchmark for setting goals and milestones. k) Plan Balances by Generation The good news is that Americans have been making an effort to save more. According to Fidelity Investments, the financial services firm that administers more than $7.4 trillion in assets, the average 401(k) plan balance reached $106,000 in the second quarter of 2019.

  • Man who made a killing during financial crisis says that, at some point, the stock market will slow down — but, till then, ‘I love riding a horse that’s running’
    Business
    MarketWatch

    Man who made a killing during financial crisis says that, at some point, the stock market will slow down — but, till then, ‘I love riding a horse that’s running’

    The U.S. stock market has enjoyed a nearly uninterrupted assault on records, highlighted by the Dow Jones Industrial Average (DJIA) closing at a milestone above 29,000 for the first time and the S&P 500 (SPX) achieving its own landmark close above the psychological round-number at 3,300, while investors in the Nasdaq Composite Index (COMP) may have their sights trained on 10,000.

  • Disadvantages of Roth IRAs Every Investor Should Know
    Business
    Investopedia

    Disadvantages of Roth IRAs Every Investor Should Know

    A Roth IRA is a tax-exempt retirement savings account that holds investments that you choose using after-tax money. If you're thinking about opening an account, consider the disadvantages of Roth IRAs first. Roth and traditional IRAs are excellent ways to stash money away for retirement.

  • A former Silicon Valley ‘party animal’ gets hit with a $31 million hangover
    Business
    MarketWatch

    A former Silicon Valley ‘party animal’ gets hit with a $31 million hangover

    Just a few years ago, Silicon Valley venture capitalist Michael Rothenberg was on top of the world — almost literally. The startup financier, still in his early 30s, was hosting clients at the Super Bowl, booking the San Francisco Giants' baseball stadium for all-day events, and flying the favored few over Napa Valley vineyards in hot-air balloons. Rothenberg, only a few years out of Harvard Business School, was an early-stage investor in new-wave fintech companies like Robinhood.

  • 3 “Strong Buy” Stocks for the 5G Revolution in 2020
    Business
    TipRanks

    3 “Strong Buy” Stocks for the 5G Revolution in 2020

    Investors in Tower Semiconductor stock can expect to see "low double-digit" organic growth in 2020, says Needham analyst Rajvindra Gill. And while that may not sound like much, it's significantly faster -- potentially as much as twice as fast -- as the 6.7% growth rate that most Wall Street analysts are expecting (which could mean additional upgrades will follow as Tower delivers on its promises). Tower aims to aggressively expand capacity at its factories churning out 200mm and 300mm chips to supply growing demand for 5G smartphones, which are experiencing "stronger than expected 5G proliferation."

  • What's the Difference Between Retirement in Canada and America?
    Business
    Investopedia

    What's the Difference Between Retirement in Canada and America?

    Key Differences: Retirement Savings Plans When it comes to saving for retirement, Canada and America both offer individuals similar financial vehicles with similar tax advantages. Canada's RRSP vs. America's Traditional IRA In Canada, Registered Retirement Savings Plans (RRSPs) allow investors to receive a tax deduction on their yearly contributions. Money invested in the plan grows tax-deferred, which advances the benefits of compounded returns.

  • Netflix Co-Founder on CEO Reed Hastings: He's courageous & focused
    Business
    Yahoo Finance Video

    Netflix Co-Founder on CEO Reed Hastings: He's courageous & focused

    Netflix CEO Reed Hastings was named Yahoo Finance's CEO of the decade. Yahoo Finance's Zack Guzman, Brian Cheung and Netflix Co-Founder & former CEO Marc Randolph discuss on YFi PM.

  • Goldman Sachs: These 2 Stocks Are Poised to Surge by at Least 20%
    Business
    TipRanks

    Goldman Sachs: These 2 Stocks Are Poised to Surge by at Least 20%

    Let's start with some good news – according to Goldman Sachs' chief global equity strategist Peter Oppenheimer, 2020 will see a continuation of last year's surge. Oppenheimer believes 2019's bull run was down to valuation expansion. With this in mind, we decided to have a look at two stocks Goldman Sachs thinks are poised to make headway in 2020.

  • McDermott Is Said to Prepare for Bankruptcy as Soon as Next Week
    Business
    Bloomberg

    McDermott Is Said to Prepare for Bankruptcy as Soon as Next Week

    McDermott International Inc. is preparing to file for bankruptcy as soon as next week to address its more than $4 billion debt load, according to people with knowledge of the matter. The Houston-based company, which builds oil platforms and gas-export plants for energy producers, is negotiating a restructuring plan that could see its debt converted into equity with existing term-loan lenders getting the majority of the shares, said the people.

  • Will Roth IRA Withdrawals Be Taxed in the Future?
    Business
    Investopedia

    Will Roth IRA Withdrawals Be Taxed in the Future?

    Today, they offer some of the best tax advantages of any retirement account. The fear exists that Roth IRA withdrawals might somehow be taxed in the future. Under current tax law, you can withdraw Roth contributions and their accumulated earnings tax-free as long as you're at least age 59 ½ and it has been at least five years since you first contributed to a Roth IRA.

  • Business
    Financial Times

    Federal Reserve’s embrace of higher inflation is ‘momentous’ for markets

    US stocks, junk bonds, silver, oil, bitcoin and even Greece-focused exchange traded funds posted stunning gains, boosted by easy central bank policies. Now new risks lurk, as the US Federal Reserve continues to keep interest rates low and pursue monthly liquidity injections, as well as purchases of Treasury bills at a similar magnitude as previous rounds of quantitative easing. Jeffrey Gundlach, chief executive of DoubleLine Capital, said it was a remarkable day for financial markets in late October, when Fed chair Jay Powell said he would need to see a “really significant move up in inflation that's persistent, before we would even consider raising rates to address inflation concerns”.

  • These 13 Tempting Dividend Stocks Torched Investors
    Business
    Investor's Business Daily

    These 13 Tempting Dividend Stocks Torched Investors

    Investors wound up losing money despite each of these stocks yielding 3% at the start of 2019 — because the stocks themselves plummeted. The SPDR S&P 500 ETF Trust, in comparison, started 2019 yielding just 2.01% (it's down to 1.7% now). Losing money especially stung in 2019, when the S&P 500 rose nearly 29%.

  • Business
    Barrons.com

    Time to Short Apple, Says Rupal Bhansali. Yes, Short Apple.

    Bhansali: (7270) (ticker: FUJHY) is in the auto sector, which is extremely out of favor, but the company is doing very well. Auto sales are peaking, and there is a trend toward low combustion-engine-oriented companies like Tesla. However, Subaru is one of the lowest-cost producers of the types of cars it sells, and yet one of the most profitable, with 9% margins.

  • Business
    Barrons.com

    Tesla and 25 Other Stock Picks from Barron’s Roundtable Pros

    Could shares of realty firm Redfin more than double? Is Apple a “blue chip of yesterday”? Indeed, now that the furious macro forecasting is behind us—what the legendary investor and former Roundtable member Peter Lynch once called “weekend worrying”—it's time for the rubber to meet the road, as five of our panelists give—and defend—their views on specific stocks and other investments.

  • Fiat Chrysler, Wingstop, Amazon: Companies to Watch
    Business
    Yahoo Finance Video

    Fiat Chrysler, Wingstop, Amazon: Companies to Watch

    Fiat Chrysler, Wingstop, Amazon and companies to watch.

  • Business
    Barrons.com

    Tesla and Spotify Stock Could Soar Tenfold, James Anderson Says

    The Roundtable members spend half of their daylong meeting each January proposing stocks, bonds, and funds that they believe will race ahead or fall on their faces, and this year was no different. Weighing in below is James Anderson of Baillie Gifford. James Anderson: We have owned (3690) (ticker: 3690.Hong Kong), the Chinese delivery company that has a 65% market share.

  • 4 changes that could affect Social Security in 2020
    Business
    USA TODAY

    4 changes that could affect Social Security in 2020

    If you're one of almost 69 million Americans who receive Social Security or Supplemental Security Income benefits, you'll notice a small change in your monthly check this year. More than 63 million beneficiaries will receive a 1.6% cost-of-living adjustment this month. The 8 million SSI beneficiaries received their COLA on Dec. 31.

  • 3 Buy-Rated Mortgage REIT Stocks That Pay a 7% Dividend  Yield — Or More
    Business
    TipRanks

    3 Buy-Rated Mortgage REIT Stocks That Pay a 7% Dividend Yield — Or More

    Scholars who study the stock market's historical performance estimate that over time, the payment (and reinvestment, and compounding) of dividends have contributed anywhere from 30% to 90% of the S&P 500's total returns. Knowing this, and having just been presented with a new stock report from investment bank B. Riley FBR, we've taken a good close look at the REITs highlighted therein -- and run them through our TipRanks Stock Screener tool to ensure that other analysts agree with B. Riley. Starting at the top is Old Greenwich, Connecticut-based Ellington Financial.

  • U.S.
    Financial Times

    Could new regulation spell the death of trusts?

    p These days trusts are often used in wills for estate planning and are frequently combined with life assurance policies. They also feature in inheritance tax planning because they allow people to control how their assets are used after they have given them away.

  • Intel layoffs? Reports of cuts amid a reorganization of Intel's data center group
    Business
    American City Business Journals

    Intel layoffs? Reports of cuts amid a reorganization of Intel's data center group

    Semiconductor industry sites are reporting layoffs at Intel as the company reorganizing its Data Center Group around its “Data-centric” strategy. The websites SemiAccurate and AnandTech have each reported that roles within the former Data Center Group are being cut and shifted. An Intel spokesman declined to comment on the accuracy of these reports and instead noted the company will be holding its fourth-quarter conference call with Wall Street analysts on Thursday.

  • Business
    Benzinga

    3 Growth Stocks To Buy For 2020

    The key to successful stock market investing is finding the stocks that boast not only strong historical growth but, more importantly, above-average growth in the years ahead. The following three growth plays not only have unbeatable records but are likely to continue growing at high rates for years to come. Thanks to the rise of e-commerce retail, many brick-and-mortar retailers are struggling or are finding themselves in outright decline.

  • Business
    Benzinga

    9 Takeaways From The JPMorgan Healthcare Conference

    The JPMorgan Healthcare Conference, which showcases innovations in the industry and provides a platform to exchange ideas and insights as well as to make breaking announcements, went by without much fanfare this year. In 2019, the conference made a splash, with Bristol-Myers Squibb Co (NYSE: BMY) announcing its multibillion-dollar purchase of Celgene just ahead of the conference and Eli Lilly And Co (NYSE: LLY) revealing its intention to buy Loxo Oncology. The 2020 conference did not see any M&A announcements outside of Teladoc Health Inc's (NYSE: TDOC) agreement to buy enterprise telehealth solutions provider InTouch Health for $600 million.

  • 3 Beaten-Down Energy Stocks That Are Bound to Make a Comeback
    Business
    TipRanks

    3 Beaten-Down Energy Stocks That Are Bound to Make a Comeback

    Setting the Stock Screener filters to show only stocks from the basic materials sector, with a Strong Buy analyst consensus and upside potential of 20% or more, we picked three energy stocks that Wall Street's agree are ready to start climbing. We'll start with Callon Petroleum, a small-cap oil and gas exploration and development company focused on the Permian Basin of West Texas. Over the past decade, the Permian formation has become North America's largest proven energy reserve and has pushed the US into position as the world's top oil producer.

  • Politics
    Fox Business

    Tax cuts 2.0 could include this middle-class windfall: Kudlow

    The Trump administration has begun reviewing ways to carry out its goal of cutting taxes for the middle class. While lowering the payroll tax isn't high on the White House's list, adjusting the earned income tax credit for low to moderate earners is something that's being examined, Larry Kudlow, director of the National Economic Council, told FOX Business' Stuart Varney. We want to aim this at even faster economic growth going out in the president's second term,” Kudlow said.