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Zacks.com featured highlights Progressive, Booz Allen Hamilton, Atour Lifestyle and Stride
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For Immediate Release
Chicago, IL – February 6, 2024 – Stocks in this week’s article are The Progressive Corp. (PGR - Free Report) , Booz Allen Hamilton Holding Corp. (BAH - Free Report) , Atour Lifestyle Holdings Limited (ATAT - Free Report) and Stride Inc. (LRN - Free Report) .
Buy These 4 Low-Beta Stocks to Counter Market Volatility
The stock market is benefiting from a January jobs report that surpassed the expectations of most analysts. However, the optimism is tempered by Federal Reserve Chair Jerome Powell's statement on Wednesday indicating that the central bank is unlikely to reduce rates in March. Thus, the market will remain volatile, prompting an immediate need to construct a portfolio comprising low-beta stocks. Such securities are expected to yield strong returns and provide a safeguard against choppy market conditions.
In this regard, stocks like The Progressive Corp., Booz Allen Hamilton Holding Corp., Atour Lifestyle Holdings Limited and Stride Inc. are worth betting on.
Understanding 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 of the six stocks that qualified for the screening:
In the domestic market, The Progressive Corporation is among the largest auto insurers. The company continues to bank on increasing net earned premiums and is expected to witness earnings growth of 41% this year.
Booz Allen Hamilton Holding is a leading provider of management and technology consulting, analytics, engineering and digital solutions. In the federal defense and civil markets, the company is witnessing excellent organic revenue growth.
Atour Lifestyle Holdings is a well-known hospitality and lifestyle company in China. It is gaining from increasing occupancy rates and its hotel network expansion.
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.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. 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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights Progressive, Booz Allen Hamilton, Atour Lifestyle and Stride
For Immediate Release
Chicago, IL – February 6, 2024 – Stocks in this week’s article are The Progressive Corp. (PGR - Free Report) , Booz Allen Hamilton Holding Corp. (BAH - Free Report) , Atour Lifestyle Holdings Limited (ATAT - Free Report) and Stride Inc. (LRN - Free Report) .
Buy These 4 Low-Beta Stocks to Counter Market Volatility
The stock market is benefiting from a January jobs report that surpassed the expectations of most analysts. However, the optimism is tempered by Federal Reserve Chair Jerome Powell's statement on Wednesday indicating that the central bank is unlikely to reduce rates in March. Thus, the market will remain volatile, prompting an immediate need to construct a portfolio comprising low-beta stocks. Such securities are expected to yield strong returns and provide a safeguard against choppy market conditions.
In this regard, stocks like The Progressive Corp., Booz Allen Hamilton Holding Corp., Atour Lifestyle Holdings Limited and Stride Inc. are worth betting on.
Understanding 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 of the six stocks that qualified for the screening:
In the domestic market, The Progressive Corporation is among the largest auto insurers. The company continues to bank on increasing net earned premiums and is expected to witness earnings growth of 41% this year.
Booz Allen Hamilton Holding is a leading provider of management and technology consulting, analytics, engineering and digital solutions. In the federal defense and civil markets, the company is witnessing excellent organic revenue growth.
Atour Lifestyle Holdings is a well-known hospitality and lifestyle company in China. It is gaining from increasing occupancy rates and its hotel network expansion.
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.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2220711/buy-these-4-low-beta-stocks-to-counter-market-volatility
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. 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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.