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Investing Essentials: High-Beta Stocks

RRGB Beta Chart
RRGB Beta Chart

RRGB Beta data by YCharts .

Red Robin faces serious long-term competitive threats to the viability of its business, while Chart Industries is a recognized global leader in the industrial cryogenic liquids processing business. Those risks didn't just show up this year, either, so in many ways, beta is more of a trailing metric, reporting past volatility rather than today's risk.

Real-world business challenges are not factored into beta, but rather mere market volatility, which is a measure of the market's perception of risk and is short-term in nature.

A few words on business-focused investing

While beta can be a helpful metric when used in combination with other tools, remember that it's only a measure of past volatility against an index -- not a measure of safety. When researching any stock, study the whole business, looking for durable advantages. Never rely on metrics alone to tell you whether a company makes a good investment.

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The article Investing Essentials: High-Beta Stocks originally appeared on Fool.com.

Jason Hall owns shares of 3D Systems, Apple, Google (A shares), Netflix, and Stratasys. The Motley Fool recommends 3D Systems, Apple, Google (A shares), Netflix, and Stratasys. The Motley Fool owns shares of 3D Systems, Apple, General Electric Company, Google (A shares), Netflix, and Stratasys. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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


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

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