For Immediate Release
Chicago, IL – August 31, 2022 – Stocks in this week’s article are Otter Tail Corp. OTTR, Ardmore Shipping Corp. ASC, Lancaster Colony Corp. LANC and BJ's Wholesale Club Holdings, Inc. BJ.
Stamp Out a Choppy Market with These 4 Low-Beta Stocks
Inflationary pressure will probably continue to make the market volatile. The Fed chairman Jerome Powell warns that the central bank should keep raising interest rates to combat inflation, raising fears of recession.
Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities will deliver healthy returns and shield against volatile market conditions. In this regard, stocks like Otter Tail Corp., Ardmore Shipping Corp., Lancaster Colony Corp. and BJ's Wholesale Club Holdings, Inc. are worth betting on.
Beta measures the volatility or risk of a particular asset compared 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.
Here are four stocks among 13 that qualified the screening:
Otter Tail Corp. is a leading player in electric utility and manufacturing businesses. For 2022 and 2023, Otter Tail has witnessed upward earnings estimate revisions in the past 30 days. To secure more stable cashflows, Otter Tail is planning to invest in rate base growth opportunities.
Ardmore Shipping's outlook seems bright since the company has set a core strategy of developing a modern, high-quality fleet of products and chemical tankers. Building up good commercial relationships for the long term is also a strong focus of Ardmore Shipping. In 2022, ASC will likely see an earnings growth of 318%.
Lancaster Colony is a well-known name in manufacturing and marketing specialty food products. To counter the inflationary pressure, Lancaster Colony resorted to continued pricing actions to boost net sales. LANC is benefitting from handsome demand for frozen garlic bread and frozen dinner rolls.
BJ's Wholesale Club is a leading player in offering a differentiated shopping experience. BJ's Wholesale Club is improving it's merchandising and witnessing an increase in its member base in both size and quality.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1973973/stamp-out-choppy-market-with-these-4-low-beta-stocks
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BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
Otter Tail Corporation (OTTR) : Free Stock Analysis Report
Ardmore Shipping Corporation (ASC) : Free Stock Analysis Report
Lancaster Colony Corporation (LANC) : Free Stock Analysis Report
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