22 Stocks with Low Market Risk, Bullish Options Sentiment

By
A A A
Share |

If you prefer stocks with low correlations to the overall market, you may want to read this list.

Here we present 22 stocks with betas less than 1, indicating that their volatility in response to shocks that move the overall market is more subdued than average. These stocks have also seen significant decreases in their put/call ratio within the last ten trading days – an indicator that options traders are more bullish on these particular names.

Is this bullishness justified by company operations and outlook, or is it excessive? Use this list as a starting-off point for your own analysis into low-beta opportunities.

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned

2. Compare analyst ratings for all stocks mentioned below 

3. Visualize market cap changes for the top stocks mentioned

List sorted by decrease in put/call ratio.

1. Edison International (EIX): Electric Utilities Industry. Market cap of $12.44B. Beta at 0.7. Put/Call ratio has decreased 74.51% over the last ten trading days (from 1.53 to 0.39, which is currently at 0% of the annual range). The stock has gained 16.01% over the last year. (View investor sentiment on EIX)

2. TransCanada Corp. (TRP): Gas Utilities Industry. Market cap of $29.01B. Beta at 0.77. Put/Call ratio has decreased 71.43% over the last ten trading days (from 0.07 to 0.02, which is currently at 5% of the annual range). The stock has gained 15% over the last year. (View investor sentiment on TRP)

3. LM Ericsson Telephone Co. (ERIC): Communication Equipment Industry. Market cap of $39.87B. Beta at 0.99. Put/Call ratio has decreased 69.91% over the last ten trading days (from 1.13 to 0.34, which is currently at 11% of the annual range). It's been a rough couple of days for the stock, losing 5.14% over the last week. (View investor sentiment on ERIC)

4. Turkcell Iletisim Hizmetleri AS (TKC): Wireless Communications Industry. Market cap of $12.65B. Beta at 0.83. Put/Call ratio has decreased 67.39% over the last ten trading days (from 0.46 to 0.15, which is currently at 1% of the annual range). TKC offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.25%, current ratio at 2.45, and quick ratio at 2.43. The stock has lost 4.77% over the last year.

5. Marsh & McLennan Companies, Inc. (MMC): Insurance Brokers Industry. Market cap of $15.91B. Beta at 0.73. Put/Call ratio has decreased 65.44% over the last ten trading days (from 1.36 to 0.47, which is currently at 14% of the annual range). The stock has gained 20.39% over the last year.

6. Valeant Pharmaceuticals International, Inc. (VRX): Drug Delivery Industry. Market cap of $15.56B. Beta at 0.76. Put/Call ratio has decreased 64.06% over the last ten trading days (from 0.64 to 0.23, which is currently at 1% of the annual range). The stock is exhibiting strong upside momentum--currently trading 5.36% above its SMA20, 19.66% above its SMA50, and 69.53% above its SMA200. The stock has had a good month, gaining 31.96%.

7. Allergan Inc. (AGN): Drug Manufacturers - Other Industry. Market cap of $23.37B. Beta at 0.91. Put/Call ratio has decreased 57.89% over the last ten trading days (from 0.76 to 0.32, which is currently at 11% of the annual range). The stock has gained 18.96% over the last year.

8. Encana Corporation (ECA): Major Integrated Oil & Gas Industry. Market cap of $23.91B. Beta at 0.94. Put/Call ratio has decreased 54.37% over the last ten trading days (from 1.03 to 0.47, which is currently at 14% of the annual range). The stock has gained 5.14% over the last year.

9. Mitsubishi UFJ Financial Group, Inc. (MTU): Money Center Banks Industry. Market cap of $64.95B. Beta at 0.95. Put/Call ratio has decreased 46.15% over the last ten trading days (from 0.13 to 0.07, which is currently at 6% of the annual range). The stock has lost 15.31% over the last year.

10. Praxair Inc. (PX): Synthetics Industry. Market cap of $31.24B. Beta at 0.86. Put/Call ratio has decreased 43.75% over the last ten trading days (from 0.8 to 0.45, which is currently at 0% of the annual range). The stock has gained 19.21% over the last year.

11. United Parcel Service, Inc. (UPS): Air Delivery & Freight Services Industry. Market cap of $70.94B. Beta at 0.82. Put/Call ratio has decreased 34.25% over the last ten trading days (from 0.73 to 0.48, which is currently at 1% of the annual range). The stock has gained 8.67% over the last year.

12. Nike Inc. (NKE): Textile - Apparel Footwear & Accessories Industry. Market cap of $37.26B. Beta at 0.91. Put/Call ratio has decreased 33.01% over the last ten trading days (from 1.03 to 0.69, which is currently at 7% of the annual range). The stock has gained 4.41% over the last year.

13. Lockheed Martin Corporation (LMT): Aerospace/Defense Products & Services Industry. Market cap of $26.88B. Beta at 0.99. Put/Call ratio has decreased 31.71% over the last ten trading days (from 0.82 to 0.56, which is currently at 1% of the annual range). The stock has lost 6.08% over the last year.

14. QUALCOMM Incorporated (QCOM): Communication Equipment Industry. Market cap of $87.60B. Beta at 0.97. Put/Call ratio has decreased 30.23% over the last ten trading days (from 0.86 to 0.6, which is currently at 0% of the annual range). The stock has gained 25.27% over the last year.

15. Toyota Motor Corp. (TM): Auto Manufacturers - Major Industry. Market cap of $121.13B. Beta at 0.71. Put/Call ratio has decreased 20.93% over the last ten trading days (from 0.86 to 0.68, which is currently at 0% of the annual range). The stock has lost 1.92% over the last year.

16. Yahoo! Inc. (YHOO): Internet Information Providers Industry. Market cap of $21.41B. Beta at 0.87. Put/Call ratio has decreased 20.00% over the last ten trading days (from 0.45 to 0.36, which is currently at 1% of the annual range). The stock has lost 11.04% over the last year.

17. Telefonos de Mexico, S.A.B. de C.V. (TMX): Long Distance Carriers Industry. Market cap of $16.61B. Beta at 0.99. Put/Call ratio has decreased 19.44% over the last ten trading days (from 0.72 to 0.58, which is currently at 2% of the annual range). TMX offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.58%, current ratio at 1.61, and quick ratio at 1.56. The stock has gained 18.65% over the last year.

18. M&T Bank Corp. (MTB): Regional - Northeast Banks Industry. Market cap of $10.49B. Beta at 0.78. Put/Call ratio has decreased 17.39% over the last ten trading days (from 0.69 to 0.57, which is currently at 0% of the annual range). The stock has gained 6.13% over the last year.

19. 3M Co. (MMM): Diversified Machinery Industry. Market cap of $65.10B. Beta at 0.82. Put/Call ratio has decreased 17.31% over the last ten trading days (from 1.04 to 0.86, which is currently at 8% of the annual range). The stock has gained 9.94% over the last year.

20. CH Robinson Worldwide Inc. (CHRW):
Air Delivery & Freight Services Industry. Market cap of $12.37B. Beta at 0.76. Put/Call ratio has decreased 17.02% over the last ten trading days (from 0.47 to 0.39, which is currently at 13% of the annual range). The stock is a short squeeze candidate, with a short float at 5.88% (equivalent to 7.12 days of average volume). The stock has gained 31.39% over the last year.

21. Mylan, Inc. (MYL): Drugs - Generic Industry. Market cap of $10.27B. Beta at 0.72. Put/Call ratio has decreased 11.11% over the last ten trading days (from 0.45 to 0.4, which is currently at 2% of the annual range). Short float at 7.71% (equivalent to 5.82 days of average volume), indicating the stock is a short squeeze candidate. The stock has gained 7.66% over the last year.

22. Paychex Inc. (PAYX): Staffing & Outsourcing Services Industry. Market cap of $11.56B. Beta at 0.85. Put/Call ratio has decreased 10.00% over the last ten trading days (from 0.3 to 0.27, which is currently at 1% of the annual range). The stock has gained 6.25% over the last year.

Options data sourced from Schaeffer’s, beta and all other data sourced from Finviz. Data sourced on April 19.

 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


Kapitall

Kapitall

More from Kapitall:

Related Videos

Stocks

Referenced

100%
100%
100%
83%
100%

Most Active by Volume

74,972,696
  • $16.29 ▲ 1.24%
58,110,176
  • $63.0301 ▲ 2.92%
52,113,540
  • $4.30 ▲ 4.37%
45,053,607
  • $26.18 ▲ 3.40%
40,556,519
  • $3.22 ▲ 0.94%
33,697,770
  • $50.83 ▲ 1.90%
33,642,638
  • $4.56 ▲ 2.01%
31,530,460
  • $20.06 ▲ 11.88%
As of 4/22/2014, 04:07 PM