Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Zacks.com Featured Highlights Craft Brew Alliance, Stamps.com, Triple-S Management, Orion Engineered Carbons And SolarEdge

Published 08/29/2017, 10:57 PM
Updated 07/09/2023, 06:31 AM

For Immediate Release

Chicago, IL – August 30, 2017 - Stocks in this week’s article include Craft Brew Alliance, Inc.(NASDAQ: (NASDAQ:BREW) – Free Report), Stamps.com (NASDAQ: (NASDAQ:STMP) – Free Report), Triple-S Management Corporation (NYSE: (NYSE:GTS) – Free Report), Orion Engineered Carbons S.A. (NYSE: (NYSE:OEC) – Free Report), SolarEdge Technologies, Inc. (NASDAQ: (NASDAQ:SEDG) – Free Report).

Screen of the Week of Zacks Investment Research:

Overcome Market Volatility with 5 Low-Beta Stocks

In-depth and thorough research are keys to success when it comes to the equity market. Simply following the crowd and investing in risky stocks blindly for lucrative returns will be a wastage of time and money. This is because risky securities derive good returns only when markets are bullish and hence the converse scenario should also be taken into account.

In this article, we are introducing a strategy that shows how to generate handsome returns from less risky stocks.

Beta Understanding

Beta indicates the volatility of a particular stock with respect to the market. In other words, beta measures the extent of stock price movement relative to the market (we are considering S&P 500 here).

If a company has a beta of 1, it means that the relative volatility of the stock is the same as that of the S&P 500. In the same way, if the stock’s beta is greater than 1 then it is more volatile compared to the market. Conversely, a beta below 1 signifies less volatility.

Now, if a portfolio’s beta is 3, it is three times more volatile than the market. Hence, if the market is projected to give 20% return, the portfolio will then definitely contribute 60% return which is amazing.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

However, the opposite case also holds true. If the market slips 20% then the portfolio return plummets 60% which is surely a matter of concern.

The Winning Strategy

In our screening criteria, we included beta in the range of 0 to 0.6 for short listing low risk stocks. But this can’t be the only criterion for betting on stocks. The other parameters that need to be added to create a winning portfolio are:

Percentage Change in Price in the Last 4 Weeks greater than zero: This ensures that the stocks saw positive price movement over the last one month.

Average 20 Day Volume greater than 50,000: A substantial trading volume ensures that the stocks are easily tradable.

Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.

Zacks Rank equal to 1: Zacks Rank #1 (Strong Buy) stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months.

Here are five of the seven stocks that qualified the screening:

Headquartered in Portland, OR, Craft Brew Alliance, Inc. (NASDAQ: BREWFree Report) is involved in brewing and selling craft beers. The company managed to beat the Zacks Consensus Estimate for earnings in two of the last four quarters, with an average positive surprise of 222.74%. Also, for 2017, we are expecting the company to witness year-over-year earnings improvement of 350%.

Stamps.com(NASDAQ: STMPFree Report) — headquartered in El Segundo, CA — is the provider of services that include shipping and mailing letters and parcels through the internet. The company surpassed the Zacks Consensus Estimate for earnings in each of the past four quarters with an average positive earnings surprise of 30.64%. Also, the Zacks Consensus Estimate for earnings for the third quarter has been revised upward over the last 30 days.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Headquartered in San Juan, Puerto Rico,Triple-S Management Corporation (NYSE: GTSFree Report) is a managed care firm and provider of insurance products and associated services. During 2017, Triple-S will likely see earnings growth of 561.5%. Also, for full-year 2017, the Zacks Consensus Estimate for earnings has been revised upward over a period of 30 days.

Headquartered in Luxembourg,Orion Engineered Carbons S.A. (NYSE: OECFree Report) is involved in supplying Carbon Black all over the world. The company posted an average positive earnings surprise of 2.22% for the last four quarters. Moreover, for 2017, we are expecting the company to post year-over-year earnings growth of 19%.

SolarEdge Technologies, Inc. (NASDAQ: SEDGFree Report) — headquartered in Herzliya, Israel — is involved in designing and selling optimized inverter systems. The company surpassed the Zacks Consensus Estimate for earnings in all the prior four quarters with an average positive surprise of 21.72%.

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.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Click here to sign up for a free trial to the Research Wizard today.

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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don’t wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111

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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!Click here for your free subscription to Profit from the Pros.

Get the full Report on BREW - FREE

Get the full Report on STMP - FREE

Get the full Report on GTS - FREE

Get the full Report on OEC - FREE

Get the full Report on SEDG - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook (NASDAQ:FB): 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/performance

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.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .


Stamps.com Inc. (STMP): Free Stock Analysis Report

Craft Brew Alliance, Inc. (BREW): Free Stock Analysis Report

Orion Engineered Carbons S.A (OEC): Free Stock Analysis Report

Triple-S Management Corporation (GTS): Free Stock Analysis Report

SolarEdge Technologies, Inc. (SEDG): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.