For Immediate Release
Chicago, IL – February 12, 2020 – Stocks in this week’s article are Lindsay Corp. LNN, Spirit Airlines Inc. SAVE, PulteGroup Inc. PHM, MicroStrategy MSTR and HEICO Corp. HEI.
Tackle Market Volatility with These 5 Low-Beta Stocks
It is widely believed that attractive returns come from risky stocks. However, the strategy seems to work only if the market is bullish. Thus, investing in some specific low-beta stocks seems profitable since the securities are less correlated to the market and have the potential to deliver impressive returns even during bearish market conditions.
Beta measures the volatility or risks to a security relative to the market (we are considering the S&P 500 here). That is, beta measures the extent to which the price of a stock moves with respect to the market.
If the beta is equal to 1 it means that the stock is as volatile as the market. So, a stock is relatively more volatile if it has beta greater than 1 and less volatile if beta is less than 1.
For example, if the beta is 1.8 then the stock will witness 80% more movement than the market. Hence, we can say that if the market goes up, the stock will outperform by 80%. Conversely, if the market plunges, the stock will lose much more value than the market.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/760084/tackle-market-volatility-with-these-5-lowbeta-stocks
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Lindsay Corporation (LNN) : Free Stock Analysis Report
PulteGroup, Inc. (PHM) : Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report
Heico Corporation (HEI) : Free Stock Analysis Report
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