Chicago, IL – March 24, 2022 – Stocks in this week’s article are Meridian Bioscience, Inc. VIVO, OP Bancorp OPBK, ICU Medical, Inc. ICUI and Pangaea Logistics Solutions Ltd. PANL.
Buy These 4 Low-Beta Stocks to Combat the Choppy Market
The stock market has been extremely volatile. Investors anticipate Russia's war in Ukraine to result in sustained inflation, which could drag the economy of the United States to recession. The only sign of relief is that the Federal Reserve will possibly take necessary steps to tamp down the inflation.
However, the U.S. market is likely to be choppy at least in the near term. 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. Four such stocks that could sail through the choppy market are Meridian Bioscience, Inc., OP Bancorp, ICU Medical, Inc. and Pangaea Logistics Solutions Ltd.
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 the four stocks among the 13 that qualified the screening:
Meridian Bioscience, headquartered in Cincinnati, OH, primarily manufactures diagnostic test kits for gastrointestinal and respiratory infectious diseases.
For fiscal 2022 earnings per share (EPS), Meridian Bioscience has witnessed upward estimate revisions over the past 60 days. Year to date, Meridian Bioscience has gained 25.2% versus the industry's 6.7% decline.
OP Bancorp has a solid business model and serves the banking needs of professionals and businesses with small and medium-sized operations.
In 2022 and 2023, OP Bancorp is likely to see earnings growth of 10.6% and 4.3%, respectively. Year to date, OP Bancorp has gained 10.4% compared with the industry's 6.4% rally.
ICU Medical has a stable business model and is a well-known name in developing and selling innovative medical products.
In 2022 and 2023, ICU Medical is likely to see earnings growth of 30.3% and 17.3%, respectively. Year to date, ICU Medical has gained 2.2% versus the industry's 6.7% decline.
Pangaea Logistics Solutions has been generating solid cash flows and is a well-known name in providing logistic services to a wide range of industrial customers.
For 2022 earnings per share, Pangaea Logistics has witnessed upward earnings estimate revisions in the past 30 days. Year to date, Pangaea Logistics has gained 50.3% compared with the industry's 30.9% improvement.
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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/1886043/buy-these-4-low-beta-stocks-to-combat-the-choppy-market
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Meridian Bioscience Inc. (VIVO) : Free Stock Analysis Report
ICU Medical, Inc. (ICUI) : Free Stock Analysis Report
Pangaea Logistics Solutions Ltd. (PANL) : Free Stock Analysis Report
OP Bancorp (OPBK) : Free Stock Analysis Report
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