For Immediate Release
Chicago, IL – June 22, 2021 – Stocks in this week’s article are J & J Snack Foods Corp. JJSF, Rocky Brands, Inc. RCKY, Vista Outdoor Inc. VSTO, Sturm, Ruger & Company, Inc. RGR and EuroDry Ltd. EDRY.
Buy These 5 Low-Beta Stocks to Combat a Choppy Market
Coronavirus vaccines are rolling out at a healthy pace, making scope for more people to socialize and attend office. Despite this, markets have become volatile on rising anticipation that the Federal Reserve will raise interest rates as early as next year to quell the inflation worries.
Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities will not only deliver healthy returns but also provide a shield against choppy market conditions.
Meaning of Beta
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 a 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 example, if the market offers a return of 20%, a stock with a 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/1742100/buy-these-5-low-beta-stocks-to-combat-the-choppy-market
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Sturm, Ruger & Company, Inc. (RGR) : Free Stock Analysis Report
J & J Snack Foods Corp. (JJSF) : Free Stock Analysis Report
Rocky Brands, Inc. (RCKY) : Free Stock Analysis Report
Vista Outdoor Inc. (VSTO) : Free Stock Analysis Report
EURODRY LTD (EDRY) : Free Stock Analysis Report
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