Zacks.com Featured Highlights Include: Casey's General Stores, Vista Outdoor, Chuy's, MicroStrategy And CBIZ
Zacks Investment Research | Nov 20, 2019 09:30PM ET
For Immediate Release
Chicago, IL – November 21, 2019 - Stocks in this week’s article are Casey's General Stores Inc. (NASDAQ:CASY) , Vista Outdoor Inc. (NYSE:VSTO) , Chuy’s Holdings Inc. (NASDAQ:CHUY) , MicroStrategy Inc. (NASDAQ:MSTR) and CBIZ, Inc. (NYSE:CBZ) .
Tackle Market Volatility with These 5 Low-Beta Stocks
There is a general belief that only risky stocks fetch handsome returns. However, the securities are rewarding only in bullish market conditions.
We have created an investment strategy that clearly shows that low-beta stocks can generate lucrative returns even if the market is bearish.
Meaning of Beta
Beta indicates the volatility of a particular stock with respect to the market. In other words, beta measures the extent of stock price movement relative to the market (we are considering S&P 500 here).
If a company has a beta of 1, it means that the relative volatility of the stock is the same as that of the S&P 500. In the same way, if the stock’s beta is greater than 1 then it is more volatile compared to the market. Conversely, a beta below 1 signifies less volatility.
Now, if a portfolio’s beta is 3, it is three times more volatile than the market. Hence, if the market is projected to give 20% return, the portfolio will then definitely contribute 60% return which is amazing.
However, the opposite case also holds true. If the market slips 20% then the portfolio return plummets 60% which is surely a matter of concern.
For the rest of this Screen of the Week article please visit Zacks.com at: Original post
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