Zacks.com Featured Highlights Include: Taro, Anglo American, EGain, Korea Electric And Grupo Aeroportuario
Zacks Investment Research | Mar 05, 2019 10:04PM ET
For Immediate Release
Chicago, IL – March 6, 2019 - Stocks in this week’s article are Taro Pharmaceutical Industries Ltd (NYSE:TARO) , Anglo American (LON:AAL) plc (OTC:NGLOY) , eGain (NASDAQ:EGAN) , Korea Electric Power Corp. (NYSE:KEP) and Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE:PAC) .
Counter Market Volatility with These 5 Low-Beta Stocks
To earn high returns, one has to gamble — this is a common belief in the investment world. However, this works well only when the market is bullish.
This article presents a strategy that shows low-beta stocks or low-risky securities can also prove rewarding when a few other parameters are considered.
Meaning of Beta
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.
For the rest of this Screen of the Week article please visit Zacks.com at: Zacks Investment Research
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