Zacks.com featured highlights include: Abercrombie, Dr. Reddy???s, Cree, Otter and Shenandoah
For Immediate Release
Chicago, IL - December 18, 2018 - Stocks in this week's article are Abercrombie & Fitch Co.ANF , Dr. Reddy's Laboratories Ltd.RDY , Cree, Inc.CREE , Otter Tail Corp.OTTR and Shenandoah Telecommunications Co.SHEN .
Bet on These 5 Low-Beta Stocks to Fight Market Volatility
There is a common misconception that only risky stocks can prove rewarding. Notably, those securities generate handsome returns only when the market is bullish.
However, there are investment strategies that show that low-beta stocks also generate high returns if some 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/342943/bet-on-these-5-lowbeta-stocks-to-fight-market-volatility
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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