Zacks.com Featured Highlights Include: Rent-A-Center, Aaron's, Casey's, Magellan Health And NorthWestern
Zacks Investment Research | Jun 27, 2019 12:27AM ET
For Immediate Release
Chicago, IL – June 27, 2019 - Stocks in this week’s article are Rent-A-Center, Inc. (NASDAQ:RCII) , Aaron's Inc. (NYSE:AAN) , Casey's General Stores Inc. (NASDAQ:CASY) , Magellan Health, Inc. (NASDAQ:MGLN) and NorthWestern Corp. (NYSE:NWE) .
Tackle Market Volatility with These 5 Low-Beta Stocks
Most investors believe that only risky stocks generate high returns. However, the strategy works only when the market is bullish.
Many strategies assure handsome returns for risk-averse investors. We have created one with low-beta stocks after considering several other parameters.
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.
For the rest of this Screen of the Week article please visit Zacks.com at: Zacks Investment Research
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