Exploring Three Low-Beta Stocks for Stable Returns Exploring Three Low-Beta Stocks for Stable Returns

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By Ronald Tech

The Allure of Low-Beta Stocks

Beta measures a stock’s volatility compared to a benchmark, like the S&P 500 Index.

Stocks with a beta above 1.0 are more volatile, while those below 1.0 offer stability.

Investing in low-beta stocks can add a defensive element to portfolios, balancing risk profiles.

Stocks in Focus

Unum Group (UNM)

Unum Group offers various insurance services and has seen increased earnings expectations leading to a Zacks Rank #1 (Strong Buy).

Investors can benefit from a 2.8% annual yield on UNM shares, with a robust 6.2% five-year annualized dividend growth rate.

Elevance Health (ELV)

Elevance Health supports healthier lives through health benefits, boasting a Zacks Rank #2 (Buy) amid positive earnings trends.

The latest quarterly results showed strong performance with earnings and sales beating estimates.

Interactive Brokers (IBKR)

Interactive Brokers operates as a global electronic market maker with positive analyst revisions, earning a Zacks Rank #2 (Buy).

Anticipate upcoming earnings growth with the stock outperforming the S&P 500 over the past two years.

The Potential of Low-Beta Stocks

Low-beta stocks, like IBKR, ELV, and UNM, contribute to stable portfolios with their defensive nature.

By blending these stocks with high-beta counterparts, investors can achieve a balanced risk mix.

Furthermore, the favorable Zacks Ranks on these stocks reflect analysts’ optimism.


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