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.