Zacks.com Featured Highlights Include: Clorox, Sprouts Farmers Market, WD-40 Company And Unicharm
Zacks Investment Research | Mar 25, 2020 10:05PM ET
For Immediate Release
Chicago, IL – March 26, 2020 – Stocks in this week’s article are The Clorox Company (NYSE:CLX) , Sprouts Farmers Market, Inc. (NASDAQ:SFM) , WD-40 Company (NASDAQ:WDFC) and Unicharm Corporation (OTC:UNICY) .
4 Low-Beta Picks to Stay Afloat Amid Coronavirus Crisis
The impact of the rapidly-spreading coronavirus outbreak has made the equity market extremely volatile. Thus, it seems wise to invest in some promising low-beta stocks that have the potential to hold up better even if the market continues to remain in the bearish territory owing to low market correlation.
Beta Understanding
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 than 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, then the portfolio will definitely lead to 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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