Chicago, IL – May 25, 2022 – Stocks in this week’s article are Chesapeake Energy Corp. CHK, Renewable Energy Group, Inc. REGI and Pangaea Logistics Solutions Ltd. PANL.
Uncertainties are prevailing in the broader market, with investors concerned about the extent of the Federal Reserve's aggressive measures to raise interest rates to combat inflation. This is because excessive tightening of the financial conditions will take a toll on economic growth. These factors are making the market extremely volatile.
Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities will deliver healthy returns and provide a shield against volatile market conditions. In this regard, stocks like Chesapeake Energy Corp., Renewable Energy Group, Inc. and Pangaea Logistics Solutions Ltd. 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 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 beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
Here are three stocks that qualified the screening:
Chesapeake Energy Corp. is a leading oil and gas exploration and production player with a footprint in the prolific Marcellus, Haynesville and Eagle Ford shale plays.
In the past seven days, Chesapeake Energy has witnessed upward earnings estimate revisions for 2022 and 2023, respectively. The company has a strong focus on reducing direct greenhouse gases and methane emissions.
Renewable Energy Group, Inc. is a leading producer of renewable fuels like biodiesel. Thus, REGI is playing a vital role in leading the transition of energy and transportation industries to sustainability.
Renewable Energy has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. Year to date, Renewable Energy has gained 44.7%, outperforming the 16.5% increase of the composite stocks belonging to the industry.
Pangaea Logistics Solutions Ltd. generates incremental cashflows by providing logistics services to a broad base of industrial customers. PANL is now banking on dry bulk market fundamentals that are rapidly improving.
Over the past 30 days, Pangaea Logistics Solutions has witnessed upward earnings estimate revisions for 2022 and 2023, respectively. Year to date, Pangaea Logistics Solutions gained 75.4%, outperforming the 26.2% rise of the composite stocks belonging to the industry.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1928263/bet-on-these-3-low-beta-stocks-to-sail-through-a-choppy-market
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Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report
Renewable Energy Group, Inc. (REGI) : Free Stock Analysis Report
Pangaea Logistics Solutions Ltd. (PANL) : Free Stock Analysis Report
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