For Immediate Release
Chicago, IL – November 21, 2019 - Stocks in this week’s article are Casey's General Stores Inc. CASY, Vista Outdoor Inc. VSTO, Chuy’s Holdings Inc. CHUY, MicroStrategy Inc. MSTR and CBIZ, Inc. CBZ.
Tackle Market Volatility with These 5 Low-Beta Stocks
There is a general belief that only risky stocks fetch handsome returns. However, the securities are rewarding only in bullish market conditions.
We have created an investment strategy that clearly shows that low-beta stocks can generate lucrative returns even if the market is bearish.
Meaning of Beta
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/629072/tackle-market-volatility-with-these-5-lowbeta-stocks?art_rec=quote-stock_overview-zacks_news-ID01-txt-629072
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MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report
Vista Outdoor Inc. (VSTO) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report
CBIZ, Inc. (CBZ) : Free Stock Analysis Report
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