For Immediate Release
Chicago, IL – November 5, 2019 - Stocks in this week’s article are US Foods Holding Corp. USFD, Genesco Inc. GCO, Thomson Reuters TRI, FTI Consulting Inc. FCN and Ellington Financial Inc. EFC.
Buy These 5 Low-Beta Stocks to Tackle Market Volatility
Although there is a general belief that only risky stocks can prove profitable, such securities perform well only in bullish market conditions.
Notably, there is a strategy which clearly shows that low-beta stocks can also generate lucrative returns if some specific parameters are considered.
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/602203/buy-these-5-lowbeta-stocks-to-tackle-market-volatility
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Thomson Reuters Corp (TRI) : Free Stock Analysis Report
Ellington Financial LLC (EFC) : Free Stock Analysis Report
US Foods Holding Corp. (USFD) : Free Stock Analysis Report
Genesco Inc. (GCO) : Free Stock Analysis Report
FTI Consulting, Inc. (FCN) : Free Stock Analysis Report
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