5 European Stocks With Low RiskGrade, Being Chased By The Smart Money

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The following is a list of European companies that have low levels of risk, as defined by the RiskGrade ratings developed by the RiskMetrics Group. Additionally, all of these stocks have seen significant net institutional inflows over the current quarter.

RiskGrades are calibrated to be more intuitive and easier to use than standard deviation or beta. According to the company, their rating system captures all the components of market risk: equity, interest rate, currency, and commodity risk.

The lower the RiskGrade rating, the lower the risk level of the stock. Willis Group Holdings Public Limited Company (WSH), the first company in our list, has a RiskGrade rating of 75, which means that it is less risky than 87% of the tickers traded on U.S. markets.

We're not going to go into detailed analysis for each company. The goal here is to give a starting point for value investors looking to get exposure to European stocks, with low risk profile. Full details below.

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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 RiskGrade rating.

1. Willis Group Holdings Public Limited Company (WSH): Insurance Brokers Industry. Market cap of $6.81B. RiskGrade 75. On a net basis, institutional investors bought 808.2K shares during the current quarter. The stock has gained 29.04% over the last year.

2. Unilever plc (UL): Food - Major Diversified Industry. Market cap of $89.91B. RiskGrade 81. On a net basis, institutional investors bought 1.8M shares during the current quarter. The stock has gained 11.04% over the last year.

3. Unilever NV (UN): Processed & Packaged Goods Industry. Market cap of $92.18B. RiskGrade 86. On a net basis, institutional investors bought 13.3M shares during the current quarter. The stock has gained 9.95% over the last year.

4. AstraZeneca PLC (AZN): Drug Manufacturers - Major Industry. Market cap of $63.83B. RiskGrade 88. On a net basis, institutional investors bought 2.7M shares during the current quarter. Relatively low correlation to the market (beta = 0.58), which may be appealing to risk averse investors. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 5.53%, current ratio at 1.5, and quick ratio at 1.4. The stock has gained 8.92% over the last year.

5. Qiagen NV (QGEN): Biotechnology Industry. Market cap of $4.58B. RiskGrade 90. On a net basis, institutional investors bought 5.9M shares during the current quarter. Relatively low correlation to the market (beta = 0.74), which may be appealing to risk averse investors. The stock has lost 15.09% over the last year.

RiskGrades sourced from RiskMetrics group, all other data sourced from Finviz.



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

Referenced Stocks: AZN , QGEN , UL , UN , WSH

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