For Immediate Release
Chicago, IL – April 25, 2022 – Stocks in this week’s article are Transportadora de Gas del Sur SA TGS, The Kroger Co. KR, OP Bancorp OPBK and Telecom Argentina S.A. TEO.
Navigate Through Market Volatility with These 4 Low-Beta Stocks
Investors worry that the markets might be in trouble with the Federal Reserve likely to tighten the monetary policy rapidly. Although most of the S&P 500 companies that have reported earnings so far have beaten the Zacks Consensus Estimate, negative headlines like inflation and the Russia-Ukraine conflict have made the market extremely volatile and it will possibly continue to be choppy, at least in the near term.
Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities will deliver healthy returns and provide a shield against volatile market conditions.
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 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 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 that qualified the screening:
Transportadora de Gas del Sur SA's midstream asset portfolio has the most extensive natural gas pipeline network in Latin America. Transportadora de Gas del Sur generates stable fee-based revenues since its pipeline assets transport more than 60% of the gas consumed in Argentina.
Transportadora de Gas del Sur has witnessed upward estimate revisions for its 2022 bottom line in the past 60 days. The upward revisions are backed by TGS' stable business model and strong focus on creating differential value for shareholders. Also, Transportadora de Gas del Sur has lower debt exposure than the composite stocks belonging to the industry.
On the basis of annual sales, The Kroger Co. is among the leading retailers in the United States. The Kroger is a well-known supermarket company, operating an economical three-tier distribution system.
For fiscal 2022, The Kroger has witnessed upward earnings estimate revisions in the past 30 days. KR is expecting momentum in its business to continue this year and has boosted its capability to adapt to the operating environment that is changing rapidly.
OP Bancorp has a solid business model and serves the banking needs of professionals and businesses with small and medium-sized operations.
In 2022 and 2023, OP Bancorp is likely to see earnings growth of 18.1% and 3.6%, respectively. Year to date, OP Bancorp has gained 7.6% compared with the industry's 4.8% rally.
Telecom Argentina S.A. is a well-known name since it is a leading provider of telecommunications services in Argentina and internationally. Telecom Argentina has been investing that will enable it to provide high-speed mobile connectivity.
For 2022 and 2023, Telecom Argentina has witnessed upward estimate revisions for its bottom line in the past 30 days.
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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/1905214/navigate-through-market-volatility-with-these-4-low-beta-stocks
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The Kroger Co. (KR) : Free Stock Analysis Report
Telecom Argentina Stet France Telecom S.A. (TEO) : Free Stock Analysis Report
Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report
OP Bancorp (OPBK) : Free Stock Analysis Report
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