The U.S. stock market is expected to remain volatile due to several factors. While indexes like the S&P 500 have hit record highs, market movements have been choppy due to concerns over global trade policies, inflation trends and the Federal Reserve's actions on interest rates. Tariff uncertainties and shifting economic policies add to unpredictability, while sector-specific pullbacks, like in consumer discretionary and communication services, create further fluctuations.
Against this backdrop, creating a curated portfolio of low-beta stocks is a wise move. This offers a safeguard against heightened market fluctuations and positions investors to navigate volatility with greater resilience and foresight.
Hence, stocks like BJ’s Wholesale Club BJ, Virtu Financial Inc VIRT, TXO Partners LP TXO and First Community Corporation FCCO are worth betting on.
Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.
Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are four of the 11 stocks that qualified for the screening:
BJ’s Wholesale Club
BJ’s Wholesale Club presents a compelling investment opportunity as a leading membership-based warehouse retailer with a strong value proposition. The company continues to expand its footprint, as seen in its latest club opening in Brooksville, FL, reinforcing its commitment to providing unbeatable savings—up to 25% off grocery store prices—to budget-conscious consumers. BJ’s diversified product offerings, including fresh foods, household essentials and gas, enhance its competitive positioning, while digital innovations like ExpressPay and same-day delivery cater to evolving consumer preferences.
Virtu Financial
Virtu Financial is making great progress with its Virtu Technology Solutions, which is becoming more popular. This service helps other companies, like broker-dealers, use advanced tools for trading and analyzing financial data. By offering these high-tech solutions, Virtu is setting itself up for long-term growth and success in the market.
TXO Partners
TXO Partners has a strong footprint in the oil-rich Permian – the most prolific basin in the United States. Being involved in exploration and production activities, the master limited partnership may continue to gain from a favorable commodity pricing environment. Notably, TXO's Mancos Shale project, with 58,500 contiguous acres holding nearly 3 Tcfe of natural gas potential, is set to be a game-changer by potentially increasing reserves fivefold, with Phase I targeting a 3,520-acre block estimated to hold 200-300 Bcf of natural gas, nearly doubling existing reserves.
First Community
First Community presents a strong investment case as a well-managed community bank with consistent earnings, solid loan and deposit growth, and disciplined capital management. The company maintains excellent asset quality, a diversified revenue stream from banking and investment advisory services and a longstanding dividend history. Its focus on core deposits and prudent risk management positions it for sustainable long-term growth???.
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.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
First Community Corporation (FCCO) : Free Stock Analysis Report
Virtu Financial, Inc. (VIRT) : Free Stock Analysis Report
TXO Partners LP (TXO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.