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Zacks.com featured highlights include The Progressive, JD.com, Mission Produce and ProAssurance
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For Immediate Release
Chicago, IL – October 7, 2024 – Stocks in this week’s article are The Progressive Corp. (PGR - Free Report) , JD.com Inc (JD - Free Report) , Mission Produce Inc. (AVO - Free Report) and ProAssurance Corp. (PRA - Free Report) .
Secure Your Portfolio with 4 Low-Beta Stocks: PGR, JD, AVO, PRA
As investors remain vigilant about the escalating conflict in the Middle East, uncertainty continues to dominate the market. The rise in the Cboe Volatility Index, often referred to as Wall Street's fear gauge, reflects this increased anxiety and doubt among investors.
Given this uncertainty, constructing a portfolio of low-beta stocks may be prudent. In this regard, stocks like The Progressive Corp., JD.com Inc, Mission Produce Inc. and ProAssurance Corp. are worth betting on.
What Are Low Beta Stocks?
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 12 stocks that qualified for the screening:
Progressive Corporation
By increasing the premiums, Progressive Corporation has successfully countered the challenges posed by high claims costs, leading to improved underwriting profitability. Despite the premium hikes, PGR has still been able to grow its customer base, which indicates strong demand and competitive positioning in the market.
JD.com
JD.com has grown from an online shopping platform to helping other businesses run more efficiently using its technology. The company is known for its supply chain and has become a leader in this space. JD.com is strongly committed to returning capital to shareholders, as reflected in its recent announcement of $5 billion in a new stock buyback program.
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.
ProAssurance
ProAssurance has seen an increase in renewal pricing in its medical professional liability business, indicating that its pricing strategy is aligning with the rising costs of claims. Also, the company has a solid financial position, as evidenced by its balance sheet, which shows that more than 90% of its investment portfolio consists of investment-grade fixed maturities.
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 include The Progressive, JD.com, Mission Produce and ProAssurance
For Immediate Release
Chicago, IL – October 7, 2024 – Stocks in this week’s article are The Progressive Corp. (PGR - Free Report) , JD.com Inc (JD - Free Report) , Mission Produce Inc. (AVO - Free Report) and ProAssurance Corp. (PRA - Free Report) .
Secure Your Portfolio with 4 Low-Beta Stocks: PGR, JD, AVO, PRA
As investors remain vigilant about the escalating conflict in the Middle East, uncertainty continues to dominate the market. The rise in the Cboe Volatility Index, often referred to as Wall Street's fear gauge, reflects this increased anxiety and doubt among investors.
Given this uncertainty, constructing a portfolio of low-beta stocks may be prudent. In this regard, stocks like The Progressive Corp., JD.com Inc, Mission Produce Inc. and ProAssurance Corp. are worth betting on.
What Are Low Beta Stocks?
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 12 stocks that qualified for the screening:
Progressive Corporation
By increasing the premiums, Progressive Corporation has successfully countered the challenges posed by high claims costs, leading to improved underwriting profitability. Despite the premium hikes, PGR has still been able to grow its customer base, which indicates strong demand and competitive positioning in the market.
JD.com
JD.com has grown from an online shopping platform to helping other businesses run more efficiently using its technology. The company is known for its supply chain and has become a leader in this space. JD.com is strongly committed to returning capital to shareholders, as reflected in its recent announcement of $5 billion in a new stock buyback program.
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.
ProAssurance
ProAssurance has seen an increase in renewal pricing in its medical professional liability business, indicating that its pricing strategy is aligning with the rising costs of claims. Also, the company has a solid financial position, as evidenced by its balance sheet, which shows that more than 90% of its investment portfolio consists of investment-grade fixed maturities.
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/2346319/secure-your-portfolio-with-4-low-beta-stocks-pgr-jd-avo-pra
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/performance for information about the performance numbers displayed in this press release.