For Immediate Release
Chicago, IL – June 1, 2020 – Stocks in this week’s article are B&G Foods, Inc. BGS, Sprouts Farmers Market, Inc. SFM, The Clorox Company CLX, Gold Fields Ltd. GFI and BJ’s Wholesale Club Holdings, Inc. BJ.
5 Low-Beta Stocks to Beat the Coronavirus Blues
The coronavirus pandemic has hammered the global economy since strict social-distancing measures taken across countries to contain the spread of the virus has shut down businesses. Although investors are optimistic about the reopening of economies, the positivity is unlikely to stay unless there is any drug or vaccine that will be a permanent solution to COVID-19.
Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities can not only deliver healthy returns but also provide a shield against market volatility.
Beta indicates the volatility of a particular stock with respect to the market. In other words, beta measures the extent of stock price movement relative to the market (we are considering S&P 500 here).
If a company has a beta of 1, it means that the relative volatility of the stock is the same as that of the S&P 500. In the same way, if the stock’s beta is greater than 1 then it is more volatile compared to the market. Conversely, a beta below 1 signifies less volatility.
Now, if a portfolio’s beta is 3, it is three times more volatile than the market. Hence, if the market is projected to give 20% return, the portfolio will then definitely contribute 60% return which is amazing.
However, the opposite case also holds true. If the market slips 20% then the portfolio return plummets 60% which is surely a matter of concern.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/951583/5-lowbeta-stocks-to-beat-coronavirus-blues
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BJs Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
The Clorox Company (CLX) : Free Stock Analysis Report
Gold Fields Limited (GFI) : Free Stock Analysis Report
BG Foods, Inc. (BGS) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
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