5 Low Beta Stocks Under $10 To Fight Market Volatility

In the wake of the Brexit fears, the strengthening of Japanese yen and weak investment-driven growth in China has induced a further spike in the Volatility S&P 500 Index or VIX. On Jun 13, the VIX rose 3.97% to close at 20.97, marking the highest single-day jump since Dec 11, 2015.

While the fear of Brexit fears loom large, which has the potential to disrupt the European trading bloc, the ongoing ‘Earnings Recession’ isn’t helping the scenario either. This led the S&P 500 Index to fall to 2079 after the market closed on Jun 13 – the worst since Apr 25, 2016.

Given this scenario, investors are advised to put in their money into low beta stocks in their portfolio to counter market volatility. Beta is the sensitivity of a stock’s movement relative to the market. Through our Zacks stock screener, investors can choose the correct mix of low beta stocks.

Our Picks

We have narrowed down on stocks that have beta lower than 0.65, a Zacks Rank #2 (Buy) or better and is currently priced less than $10 a share. While Buy-rated stocks are much sought after, share prices below $10 will ensure that the dollar effect of volatility in an investor’s portfolio is minimal.

Capstead Mortgage Corp. (NYSE:CMO) is a Real Estate Investment Trust (REIT) in the U.S. On Monday, it closed at $9.56. Currently, the stock exhibits a beta of 0.38 and has a Zacks Rank #2.

Fortuna Silver Mines Inc. (NYSE:FSM) is a mineral exploration company based in Latin America. On Monday, the stock closed at $6.45. At present, it carries a Zacks Rank #2 and a beta of 0.63.

IAMGOLD Corp. (TO:IAG) is a mineral exploration company with focus on North and South America, and West Africa. On Monday, it closed at $3.88. At present, the stock has a Zacks Rank #2 and exhibits a beta of 0.08.

Pretium Resources Inc. (TO:PVG) is a gold and silver exploration company. On Monday, it closed at $8.87. At present, the stock sports a Zacks Rank #1 (Strong Buy) and has a beta of 0.23.

TransAlta Corp. (NYSE:TAC) is an electricity generation company. On Monday, it closed at $5.44. At present, the stock carries a Zacks Rank #2 and a beta of 0.46.