Zacks.com Featured Highlights Include: Ollie's Bargain Outlet, Movado, KMG Chemicals, Newmont Mining And G-III Apparel
Zacks Investment Research | Jan 08, 2018 09:00PM ET
For Immediate Release
Chicago, IL – January 9, 2018 - Stocks in this week’s article Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) , Movado Group, Inc. (NYSE:MOV) , KMG Chemicals, Inc. (NYSE:KMG) , Newmont Mining Corporation (NYSE:NEM) and G-III Apparel Group, Ltd. (NASDAQ:GIII) .
Don’t Worry About Market Volatility: Buy These 5 Low-Beta Stocks
Investors generally believe only risky stocks could garner better returns than the market. The strategy works only when the market remains bullish. In a bearish market, the scenario, however, will be opposite.
In this article, we have proven that less risky stocks can also reward investors with handsome returns if some specific parameters are considered while building an investment strategy.
Beta Understanding
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.
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