For Immediate Release
Chicago, IL – November 12, 2024 – Stocks in this week’s article are Sprouts Farmers Market Inc. (SFM – Free Report) , Mission Produce Inc. (AVO – Free Report) , Stride Inc. (LRN – Free Report) and The Progressive Corp. (PGR – Free Report) .
Buy 4 Low-Beta Stocks to Beat Market Volatility
While U.S. markets have gained from investor optimism following the election, the lack of substantial fiscal support from China has disappointed investors. This could limit global economic growth, affecting U.S. companies with international exposure. Given the backdrop, constructing a portfolio of low-beta stocks may be prudent, as the market may witness volatility.
In this regard, stocks like Sprouts Farmers Market Inc., Mission Produce Inc., Stride Inc. and The Progressive Corp. are worth betting on.
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.
Here are four among 16 stocks that qualified the screening:
Sprouts Farmers Market
Increasing customer engagement and solid comparable store sales are benefiting Sprouts Farmers Market. SFM is positioning itself for continued growth with plans to open 33 new stores in 2024 and a projected comparable store sales growth of 8% to 10% for the fourth quarter of 2024.
Mission Produce
As a global leader in the avocado industry, Mission Produce is well-positioned to capitalize on the growing consumer demand for healthy eating. Avocados, rich in more than 20 vitamins and minerals, offer significant health benefits for the heart, skin and weight management, making them an increasingly popular choice among health-conscious consumers.
Stride
Stride maintains a stable business model by revolutionizing the educational experiences of individuals through the utilization of innovative, high-quality and technology-enabled educational solutions.
The Progressive Corporation
In the domestic market, The Progressive Corporation is among the largest auto insurers. The company continues to bank on increasing average earned premiums per policy and is expected to witness earnings growth of 115.2% this year.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2368428/buy-4-low-beta-stocks-sfm-avo-lrn-pgr-to-beat-market-volatility?art_rec=quote-stock_overview-zacks_news-ID02-txt-2368428
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