Best Low-Beta Stocks to Own Right Away: GOLD, CBOE, SKM & AGRO

Investors are worried about the U.S.-Israeli war on Iran as the Middle East tension could hurt the global financial markets and the economies. Thus, the stock market will remain volatile. Amid rising fears, one can bet on low-beta stocks like Gold.com Inc GOLD, Cboe Global Markets, Inc. CBOE, SK Telecom SKM and Adecoagro S.A. AGRO.

What Does Beta of a Stock Measure?

Beta measures the volatility or risk of a particular asset compared 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 a 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 a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.

Screening Criteria Using Research Wizard:

We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.

Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month.

Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable.

Price Greater Than or Equal to $5: They must all be trading at a minimum of $5 or higher.

Zacks Rank Equal to 1: Zacks Rank #1 (Strong Buy) stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.

Here are four of the 25 stocks that qualified for the screening:

Gold.com

Gold.com has established a strong foothold through its comprehensive approach to the precious metals market. The company continues to benefit from the sustained upward trend in gold prices as well as its growing international footprint. Its multiple revenue channels enable it to capitalize on fluctuations in the market, helping strengthen its position within the industry.

Cboe Global Markets

Among the business areas where Cboe Global is growing, options trading remains active. As trading activity surges, CBOE collects more fees, which is fueling profits. The company is financially strong with low debt while consistently rewarding shareholders, thereby giving investors added confidence.

SK Telecom

SK Telecom is a leading provider of mobile services and is now employing AI at the core of its business. While focusing strongly on AI infrastructure, digital transformation and AI services, SKM is well-positioned to create long-term value for shareholders.

Adecoagro S.A.

From agricultural waste and other renewable sources, Adecoagro SA generates more than 1 million megawatt-hours of renewable electricity annually. Owing to this, AGRO is capable of utilizing a significant proportion of the energy it consumes from its own renewable energy sources. This is why the company is reducing its expenses and dependence on an external source of energy.

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SK Telecom Co., Ltd. (SKM): Free Stock Analysis Report

Cboe Global Markets, Inc. (CBOE): Free Stock Analysis Report

Gold.com Inc. (GOLD): Free Stock Analysis Report

Adecoagro S.A. (AGRO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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