For Immediate Release
Chicago, IL – November 20, 2017 - Stocks in this week’s article Michael Kors Holdings Limited KORS, Tyson Foods, Inc. TSN, Sprouts Farmers Market, Inc. SFM, Triple-S Management Corporation GTS and Rayonier Inc. RYN
Scared of Market Volatility? Bet on 5 Low-Beta Stocks
Generally, the investment community believes that only risky securities could generate lucrative returns. The strategy seems meaningful when the market is bullish. But investors should also be ready to accept lackluster returns when the market turns bearish.
With intense research, we have developed a strategy which clearly shows that less risky assets can also provide investors with impressive returns only when some parameters are considered.
Meaning of Beta
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.
Building a Low-Risk Portfolio
In order to find stocks with lower-than-market volatility, we added beta between 0 and 0.6 as our main criterion for screening. However, we need to keep in mind that low beta is not the only metric to be considered for choosing stocks in a volatile market. Hence to reach the winning strategy, we have considered a few additional criteria.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/283265/scared-of-market-volatility-bet-on-5-lowbeta-stocks
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Rayonier Inc. (RYN) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
Tyson Foods, Inc. (TSN) : Free Stock Analysis Report
Triple-S Management Corporation (GTS) : Free Stock Analysis Report
Michael Kors Holdings Limited (KORS) : Free Stock Analysis Report
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