Zacks.com featured highlights include: BJ's Wholesale Club, Eli Lilly, Sprouts Farmers Market, Kroger and Everbridge
For Immediate Release
Chicago, IL – July 16, 2020 – Stocks in this week’s article are BJ's Wholesale Club Holdings, Inc. BJ, Eli Lilly and Company LLY, Sprouts Farmers Market, Inc. SFM, The Kroger Co. KR and Everbridge, Inc. EVBG.
5 Low-Beta Stocks to Beat Coronavirus-Induced Volatility
Markets are extremely volatile as the large but opposing forces of gradual economic recovery and the new wave of coronavirus infections keep investors on the edge. Hence, it is of utmost importance to create a portfolio of low-beta securities since such stocks not only deliver healthy returns but also provide a shield against market volatility.
Meaning of Beta
Beta measures the volatility or risk of a particular asset in comparison to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of 20%, a stock with beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/1004556/5-lowbeta-stocks-to-beat-coronavirusinduced-volatility
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BJs Wholesale Club Holdings, Inc. (BJ): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
The Kroger Co. (KR): Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report
Everbridge, Inc. (EVBG): Free Stock Analysis Report
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