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Beta measures a stock's volatility in comparison to the overall market. By definition, the market, such as the S&P 500 Index, has a beta of 1.0.
A beta above 1.0 suggests a stock is more volatile than the broader market, and a beta below 1.0 indicates the opposite. Low-beta stocks can provide several beneficial advantages for portfolios, including defensive qualities.
They can also offer stabilization when combined with high-beta stocks, helping to give a more balanced risk profile.
Three low-beta stocks – Interactive Brokers (IBKR - Free Report) , Elevance Health (ELV - Free Report) , and Consolidated Edison (ED - Free Report) – could all be considered for those looking for a more conservative approach.
In addition to decreased volatility, all three sport a favorable Zacks Rank, reflecting optimism among analysts.
Let’s take a closer look at each.
Elevance Health Keeps Beating Earnings Expectations
Elevance Health operates as a health benefits company, supporting consumers, families, and communities throughout the care journey to lead healthier lives. The company sports a favorable Zacks Rank #2 (Buy), with earnings expectations inching higher nearly across the board.
ELV’s latest quarterly results pleased investors, with shares moving well higher after the earnings release. Regarding headline figures, Elevance posted a 1% beat relative to the Zacks Consensus EPS estimate and reported sales modestly below expectations.
Earnings grew 12.5% year over year, whereas sales increased 1%. Below is a chart illustrating the company’s quarterly revenue.
Image Source: Zacks Investment Research
Interactive Brokers Crushes S&P 500
Interactive Brokers Group operates as an automated global electronic market maker and broker. Analysts have positively revised expectations across the board, landing the stock into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
It’s worth noting that the stock is a big-time outperformer over the last two years, adding an impressive 125% in value compared to the S&P 500’s 50% gain. Increased trading activity has benefited the company nicely over recent years.
Image Source: Zacks Investment Research
Consolidated Edison Keeps Rewarding Shareholders
Consolidated Edison, a current Zacks Rank #2 (Buy), is a diversified utility holding company with subsidiaries engaged in both regulated and unregulated businesses. The company has been a great earnings performer, exceeding the Zacks Consensus EPS estimate by an average of 6% across its last four releases.
Income-focused investors could find ED shares attractive, currently yielding a solid 3.8% annually. Dividend growth is also apparent, with the company sporting a modest 2% five-year annualized dividend growth rate.
The company has long displayed a shareholder-friendly nature, as we can see illustrated below.
Image Source: Zacks Investment Research
Bottom Line
Low-beta stocks can provide several beneficial advantages for portfolios, including defensive qualities.
They can also offer stabilization when combined with high-beta stocks, helping to give a more balanced risk profile.
And for those seeking a more conservative approach, all three low-beta stocks above - Interactive Brokers (IBKR - Free Report) , Elevance Health (ELV - Free Report) , and Consolidated Edison (ED - Free Report) – could be considerations.
In addition to decreased volatility, all three sport favorable Zacks Ranks, reflecting optimism among analysts.
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Tame Volatility with These 3 Low Beta Stocks
Beta measures a stock's volatility in comparison to the overall market. By definition, the market, such as the S&P 500 Index, has a beta of 1.0.
A beta above 1.0 suggests a stock is more volatile than the broader market, and a beta below 1.0 indicates the opposite. Low-beta stocks can provide several beneficial advantages for portfolios, including defensive qualities.
They can also offer stabilization when combined with high-beta stocks, helping to give a more balanced risk profile.
Three low-beta stocks – Interactive Brokers (IBKR - Free Report) , Elevance Health (ELV - Free Report) , and Consolidated Edison (ED - Free Report) – could all be considered for those looking for a more conservative approach.
In addition to decreased volatility, all three sport a favorable Zacks Rank, reflecting optimism among analysts.
Let’s take a closer look at each.
Elevance Health Keeps Beating Earnings Expectations
Elevance Health operates as a health benefits company, supporting consumers, families, and communities throughout the care journey to lead healthier lives. The company sports a favorable Zacks Rank #2 (Buy), with earnings expectations inching higher nearly across the board.
ELV’s latest quarterly results pleased investors, with shares moving well higher after the earnings release. Regarding headline figures, Elevance posted a 1% beat relative to the Zacks Consensus EPS estimate and reported sales modestly below expectations.
Earnings grew 12.5% year over year, whereas sales increased 1%. Below is a chart illustrating the company’s quarterly revenue.
Image Source: Zacks Investment Research
Interactive Brokers Crushes S&P 500
Interactive Brokers Group operates as an automated global electronic market maker and broker. Analysts have positively revised expectations across the board, landing the stock into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
It’s worth noting that the stock is a big-time outperformer over the last two years, adding an impressive 125% in value compared to the S&P 500’s 50% gain. Increased trading activity has benefited the company nicely over recent years.
Image Source: Zacks Investment Research
Consolidated Edison Keeps Rewarding Shareholders
Consolidated Edison, a current Zacks Rank #2 (Buy), is a diversified utility holding company with subsidiaries engaged in both regulated and unregulated businesses. The company has been a great earnings performer, exceeding the Zacks Consensus EPS estimate by an average of 6% across its last four releases.
Income-focused investors could find ED shares attractive, currently yielding a solid 3.8% annually. Dividend growth is also apparent, with the company sporting a modest 2% five-year annualized dividend growth rate.
The company has long displayed a shareholder-friendly nature, as we can see illustrated below.
Image Source: Zacks Investment Research
Bottom Line
Low-beta stocks can provide several beneficial advantages for portfolios, including defensive qualities.
They can also offer stabilization when combined with high-beta stocks, helping to give a more balanced risk profile.
And for those seeking a more conservative approach, all three low-beta stocks above - Interactive Brokers (IBKR - Free Report) , Elevance Health (ELV - Free Report) , and Consolidated Edison (ED - Free Report) – could be considerations.
In addition to decreased volatility, all three sport favorable Zacks Ranks, reflecting optimism among analysts.