The Zacks Analyst Blog Highlights: Laureate, Jabil, Casey???s, Abercrombie & Fitch And CenterPoint Energy
Zacks Investment Research | Jan 17, 2019 10:16PM ET
For Immediate Release
Chicago, IL – January 18, 2019 - Stocks in this week’s article are Laureate Education Inc. (NASDAQ:LAUR) , Jabil, Inc. (NYSE:JBL) , Casey’s General Stores, Inc. (NASDAQ:CASY) , Abercrombie & Fitch Company (NYSE:ANF) and CenterPoint Energy, Inc. (NYSE:CNP) .
Fight Market Volatility with These Low-Beta Stocks
Most investors believe that only risky stocks yield handsome returns. However, the strategy works well only when the market is bullish.
There are other plans that can be created according to the investment objectives of individual clients. In this article, we have presented a strategy that shows healthy returns can also be earned with a low-risk portfolio only when some other parameters are kept in mind.
Beta Understanding
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 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.
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