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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: https://www.zacks.com/stock/news/834182/4-LowBeta-Picks-to-Stay-Afloat-Amid-Coronavirus-Crisis
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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