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Zacks.com featured highlights include Erie Indemnity, Sprouts Farmers Market, Newmont and Unilever
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For Immediate Release
Chicago, IL – September 5, 2024 – Stocks in this week’s article are Erie Indemnity Co. (ERIE - Free Report) , Sprouts Farmers Market Inc. (SFM - Free Report) , Newmont Corp. (NEM - Free Report) and Unilever (UL - Free Report) .
Volatility Concerns? Bet on 4 Low-Beta Stocks: ERIE, SFM, NEM, UL
Investors are bracing for a volatile market this week as key economic data are set to be released, including job openings, jobless claims and the crucial nonfarm payrolls report. These labor market figures will likely influence the Federal Reserve's decision on its upcoming rate cut, which could vary from a standard adjustment to a more substantial reduction, impacting broader market dynamics.
Given this uncertainty, constructing a portfolio of low-beta stocks may be prudent. In this regard, stocks like Erie Indemnity Co., Sprouts Farmers Market Inc., Newmont Corp. and Unilever are worth betting on.
What Does the 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 17 stocks that qualified for the screening:
Erie Indemnity
Erie Indemnity has witnessed a rise in management fee revenues from policy issuance and renewal services. Increasing management fee revenues from administrative services are also aiding Erie Indemnity. Further, compared to the composite stocks belonging to the industry, the company has a much stronger balance sheet.
Sprouts Farmers Market
Increasing engagement of customers and solid comparable store sales are aiding Sprouts Farmers Market. The company's board of directors has approved a new $600 million share repurchase program, reflecting its robust cash flow generation. In 2024, SFM plans to open roughly 35 new stores and anticipates total sales growth in the range of 9% to 10%.
Newmont
Newmont, a leading explorer and producer of gold, is advancing on its divesture program and is well-focused on repurchasing shares and reducing its debt burden. NEM owns a top-quality collection of Tier 1 assets, which are considered high-value, low-cost and long-life mining assets. This strong portfolio is expected to provide the company with the ability to generate sustainable, profitable and responsible gold production for many years to come.
Unilever
Unilever, renowned for its strong portfolio of brands, is among the world's leading consumer goods companies. The company generates billions of dollars in turnover, with more than 55% coming from emerging markets. Unilever has a vast customer base, with 3.4 billion people using its products daily.
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.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Erie Indemnity, Sprouts Farmers Market, Newmont and Unilever
For Immediate Release
Chicago, IL – September 5, 2024 – Stocks in this week’s article are Erie Indemnity Co. (ERIE - Free Report) , Sprouts Farmers Market Inc. (SFM - Free Report) , Newmont Corp. (NEM - Free Report) and Unilever (UL - Free Report) .
Volatility Concerns? Bet on 4 Low-Beta Stocks: ERIE, SFM, NEM, UL
Investors are bracing for a volatile market this week as key economic data are set to be released, including job openings, jobless claims and the crucial nonfarm payrolls report. These labor market figures will likely influence the Federal Reserve's decision on its upcoming rate cut, which could vary from a standard adjustment to a more substantial reduction, impacting broader market dynamics.
Given this uncertainty, constructing a portfolio of low-beta stocks may be prudent. In this regard, stocks like Erie Indemnity Co., Sprouts Farmers Market Inc., Newmont Corp. and Unilever are worth betting on.
What Does the 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 17 stocks that qualified for the screening:
Erie Indemnity
Erie Indemnity has witnessed a rise in management fee revenues from policy issuance and renewal services. Increasing management fee revenues from administrative services are also aiding Erie Indemnity. Further, compared to the composite stocks belonging to the industry, the company has a much stronger balance sheet.
Sprouts Farmers Market
Increasing engagement of customers and solid comparable store sales are aiding Sprouts Farmers Market. The company's board of directors has approved a new $600 million share repurchase program, reflecting its robust cash flow generation. In 2024, SFM plans to open roughly 35 new stores and anticipates total sales growth in the range of 9% to 10%.
Newmont
Newmont, a leading explorer and producer of gold, is advancing on its divesture program and is well-focused on repurchasing shares and reducing its debt burden. NEM owns a top-quality collection of Tier 1 assets, which are considered high-value, low-cost and long-life mining assets. This strong portfolio is expected to provide the company with the ability to generate sustainable, profitable and responsible gold production for many years to come.
Unilever
Unilever, renowned for its strong portfolio of brands, is among the world's leading consumer goods companies. The company generates billions of dollars in turnover, with more than 55% coming from emerging markets. Unilever has a vast customer base, with 3.4 billion people using its products daily.
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/2331685/volatility-concerns-bet-on-4-low-beta-stocks-erie-sfm-nem-ul
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
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/performancefor information about the performance numbers displayed in this press release.