For Immediate Release
Chicago, IL – September 30, 2022 – Stocks in this week’s article are Scorpio Tankers Inc. STNG, AMN Healthcare Services, Inc. AMN, KnowBe4, Inc. KNBE and BJ's Wholesale Club Holdings, Inc. BJ.
Sail Through Market Volatility with These 4 Low-Beta Stocks
Broad inflationary pressures are increasing. There are signals from the Fed that in the upcoming meetings, additional rate hikes are likely, thereby raising fears of a recession and spurring market volatility.
Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities will deliver healthy returns and shield against volatile market conditions. In this regard, stocks like Scorpio Tankers Inc., AMN Healthcare Services, Inc., KnowBe4, Inc. and BJ's Wholesale Club Holdings, Inc. are worth betting on.
Understanding of Beta
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 stocks among five that qualified the screening:
Scorpio Tankers is expected to generate significant cashflows since the company is the largest product tanker owner in the world. Scorpio Tankers has a diversified blue-chip customer base, providing services related to the marine transportation of refined petroleum products. For 2022, STNG is likely to see earnings growth of 315.4%.
KnowBe4 is well known name for providing security awareness training and a simulated phishing platform. In the current geopolitical-tension environment, there has been a heightened demand for organizations to establish a strong security culture. In the past 30 days, KnowBe4 has witnessed upward earnings estimate revisions for 2022 and 2023.
AMN Healthcare Services, a leader in total talent solutions for healthcare organizations, has been pleasing shareholders by repurchasing 6.8 million shares since 2016. The portfolio of AMN Healthcare's diversified solutions is in great demand as healthcare organizations are still facing a massive shortage of labor. In the past 60 days, AMN Healthcare has witnessed upward earnings estimate revisions for 2022 earnings.
BJ's Wholesale Club is a leading player in offering a differentiated shopping experience. BJ is improving its merchandising and witnessing an increased member base in terms of size and quality.
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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/1986349/sail-through-market-volatility-with-these-4-low-beta-stocks
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BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
KnowBe4, Inc. (KNBE) : Free Stock Analysis Report
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