It’s been a volatile couple of weeks in the market, with tariff talks spooking investors and causing negative price action in many of the leading stocks.

But investors can help balance out their risk profiles by targeting low-beta stocks, helping during intense volatility spikes like we’ve recently witnessed.

Three low-beta stocks, namely The Progressive Corp. PGR, Sony SONY, and American Water Works AWK, could all be seen as ‘defensive’ additions.

All three have also enjoyed positive earnings estimate revisions over recent months, landing them into favorable Zacks Ranks. Let’s take a closer look at each.

PGR Shares Remain Hot

PGR shares have been rockstar performers in 2025 so far, up more than 20% and widely outperforming relative to the S&P 500. Strong quarterly results helped aid the move, with its next set expected next month near mid-April.

The stock sports a Zacks Rank #2 (Buy), with its earnings outlook bullish across the board. The insurance titan is expected to see 7% EPS growth on 16% higher sales in its current fiscal year.

Image Source: Zacks Investment Research

Net premiums earned, the company’s core driver of revenue, have shown solid growth over recent periods, growing 20% year-over-year throughout its latest quarter. The momentum here is undoubtedly a big positive for PGR, leading to strong quarterly prints over recent periods.

Below is a chart illustrating PGR’s net premiums earned on a quarterly basis.

Image Source: Zacks Investment Research

Shares also provide a small level of passive income, with PGR shares currently yielding a modest 0.1% annually. Unlike other insurers, PGR shares aren’t commonly targeted among income-focused investors, but the raw share performance helps bridge that gap nicely.

Sony Lifts Guidance

SNY shares have also been red-hot in 2025 so far, up just over 20% and widely outperforming relative to the general market. Its recent set of quarterly results sparked a positive post-earnings move despite falling short of our consensus expectations, with upgraded profit guidance more than enough to keep shareholders happy.

The outlook for its current fiscal year continues to remain constructive, with the stock also sporting the highly-coveted Zacks Rank #1 (Strong Buy).

Image Source: Zacks Investment Research

Shares also reflect an attractive option for those with an appetite for income, with the company sporting a shareholder-friendly 24% five-year annualized dividend growth rate. Shares currently yield a solid 1.9% annually compared to a 1.2% yield from the S&P 500.

It’s critical to note here that SONY pays its dividends semiannually.

AWK Keeps Paying Shareholders

AWK shares have also shown relative strength in 2025, gaining 13% compared to the S&P 500’s modest decline. Its latest set of quarterly results in mid-February perked shares up nicely, with the company exceeding both consensus EPS and sales expectations.

The company also reaffirmed previous guidance, adding to the positivity. Shares reflect the strongest play from an income standpoint, with the current 2.2% annual yield nearly double that of the S&P 500. AWK has upped its payout five times over the past five years, translating to an 8.8% five-year annualized dividend growth rate.

Image Source: Zacks Investment Research

Further, the company’s margins picture remains positive, as shown below. Please note that the chart below tracks values on a trailing-twelve-month basis.

Image Source: Zacks Investment Research

Bottom Line

During periods of heightened volatility, low-beta stocks can provide a valuable layer of defense and a more balanced risk profile.

And over recent months, several low-beta stocks – The Progressive Corp. PGR, Sony SONY, and American Water Works AWK – have enjoyed positive earnings estimate revisions, landing them into favorable Zacks Ranks.

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The Progressive Corporation (PGR) : Free Stock Analysis Report

American Water Works Company, Inc. (AWK) : Free Stock Analysis Report

Sony Corporation (SONY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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