Zacks.com featured highlights include JSanderson Farms, Otter Tail, J&J Snack Foods and AMN Healthcare

Zacks.com featured highlights include JSanderson Farms, Otter Tail, J&J Snack Foods and AMN Healthcare

Zacks Equity Research
6 min read
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For Immediate Release

Chicago, IL – July 13, 2022 – Stocks in this week’s article are Sanderson Farms, Inc. SAFM, Otter Tail Corp. OTTR, J&J Snack Foods Corp. JJSF and AMN Healthcare Services, Inc. AMN.

Buy These 4 Low-Beta Stocks to Sail Through a Volatile Market

Uncertainty prevails in the market, with investors waiting for fresh inflation data and corporate earnings. The market could be volatile as the data are likely to determine the path of interest rate hikes by the Federal Reserve. Market pundits are fearing potential recession as a strong job report is possibly encouraging the Fed to continue its aggressive increase in interest rate.

Hence, creating a portfolio of low-beta stocks is of utmost importance as the securities will deliver healthy returns and shield against volatile market conditions. In this regard, stocks like Sanderson Farms, Inc., Otter Tail Corp., J&J Snack Foods Corp., and AMN Healthcare Services, Inc. are worth betting on.

Beta Understanding

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.

Here are four stocks among 16 that qualified the screening:

Sanderson Farms secures stable cashflows from producing, processing and distributing fresh, frozen and minimally prepared chicken. Backed by higher average selling prices, Sanderson Farms is experiencing increased margins. For fiscal 2022, Sanderson Farms has witnessed increased earnings estimate revisions over the past 30 days.

Otter Tail Corp. is a leading player in electric utility and manufacturing businesses. For 2022 and 2023, Otter Tail has witnessed upward earnings estimate revisions over the past 60 days. In order to secure more stable cashflows, Otter Tail is planning to invest in rate base growth opportunities.

J&J Snack Foods is a well-known name in the snack food industry. J&J Snack has won new customers and launched products, with quarterly net sales exceeding the pre-covid mark.

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