For Immediate Release
Chicago, IL – June 30, 2020 – Stocks in this week’s article are B&G Foods, Inc. BGS, K12 Inc. LRN, The Kroger Co. KR, Ericsson ERIC and iClick Interactive Asia Group Ltd. ICLK.
5 Low-Beta Stocks to Beat the Renewed Coronavirus Panic
Markets have become extremely volatile since investors are worried that the second wave of coronavirus might delay the recovery in global economy. Thus, the optimism surrounding the reopening of economies is unlikely to stay unless there is any permanent drug or vaccine solution to COVID-19.
Hence, it would be wise to create a portfolio of low-beta stocks since the securities can not only provide protection against the choppy market but also generate healthy returns.
Meaning of Beta
Beta indicates the volatility of a particular stock with respect to the market. In other words, beta measures the extent of stock price movement relative to the market (we are considering S&P 500 here).
If a company has a beta of 1, it means that the relative volatility of the stock is the same as that of the S&P 500. In the same way, if the stock’s beta is greater than 1 then it is more volatile compared to the market. Conversely, a beta below 1 signifies less volatility.
Now, if a portfolio’s beta is 3, it is three times more volatile than the market. Hence, if the market is projected to give 20% return, the portfolio will then definitely contribute 60% return which is amazing.
However, the opposite case also holds true. If the market slips 20% then the portfolio return plummets 60% which is surely a matter of concern.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/994313/5-lowbeta-stocks-to-beat-the-renewed-coronavirus-panic
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Ericsson (ERIC) : Free Stock Analysis Report
The Kroger Co. (KR) : Free Stock Analysis Report
BG Foods, Inc. (BGS) : Free Stock Analysis Report
K12 Inc (LRN) : Free Stock Analysis Report
iClick Interactive Asia Group Ltd. (ICLK) : Free Stock Analysis Report
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