For Immediate Release
Chicago, IL – December 11, 2019 - Stocks in this week’s article are FTI Consulting Inc. FCN, Chuy’s Holdings Inc. CHUY, Target Corp. TGT, ChannelAdvisor Corp. ECOM and PennyMac Financial Services, Inc. PFSI.
Worried About Market Volatility? Here Are 5 Low-Beta Stocks
Most investors pick risky stocks for high returns. However, the strategy works well only when the market is bullish. Precisely, risky securities have high market exposure and generate lackluster returns in the bearish market conditions. Hence, the best way to avoid market volatility is to develop a portfolio of low-beta stocks.
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 instance, 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/663668/worried-about-market-volatility-here-are-5-lowbeta-stocks
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ChannelAdvisor Corporation (ECOM) : Free Stock Analysis Report
PennyMac Financial Services, Inc. (PFSI) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report
FTI Consulting, Inc. (FCN) : Free Stock Analysis Report
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