S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20

Low Beta Stocks

Beta is the result of a calculation that measures the relative volatility of a stock in correlation to a particular standard. For U.S. stocks that standard is usually, but not always, the S&P 500. Beta is a form of regression analysis and it can be useful for investors regardless of their risk tolerance. Beta is considered one of the few data points that can be beneficial for practitioners of fundamental analysis and technical analysis. This page lists stocks that have unusually low beta calculations, meaning there is little correlation between the price moves of these stocks and the S&P 500. More about low beta stocks.

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
Available with a MarketBeat All Access Subscription
MarketRank™Upgrade to All Access to use the All Ranks Filter
Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
Available with a MarketBeat All Access Subscription
Media SentimentUpgrade to All Access to use the All Sentiments Filter
Analyst consensus is the average investment recommendation among Wall Street research analysts.
Available with a MarketBeat All Access Subscription
Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PriceBetaPE RatioMarket CapVolumeAverage VolumeIndicator(s)
HRL
Hormel Foods
$42.81
-0.3%
0.0127.10$23.23 billion1.17 million2.20 millionDividend Increase
CTXS
Citrix Systems
$82.90
-2.2%
0.0133.03$10.34 billion1.81 million1.42 millionNews Coverage
INDI
indie Semiconductor
$13.47
+1.3%
0.013.76$1.75 billion698,7651.04 millionGap Down
ACI
Albertsons Companies
$35.72
+2.6%
0.0231.61$16.69 billion830,0401.71 millionNews Coverage
VALU
Value Line
$41.80
-4.1%
0.0317.27$399.48 million5,4577,526Short Interest ↑
News Coverage
EIG
Employers
$39.70
-2.3%
0.048.94$1.11 billion83,771139,214Analyst Revision
Gap Down
PBIP
Prudential Bancorp
$14.26
-1.7%
0.0418.05$111.14 million1,19619,275Gap Down
DGICA
Donegal Group
$13.97
-2.2%
0.0612.15$437.67 million40,23757,268Analyst Upgrade
Analyst Revision
News Coverage
PFHD
Professional
$19.29
-0.6%
0.0611.91$258.99 million4,75538,192Negative News
Gap Down
AOUT
American Outdoor Brands
$23.44
-2.3%
0.0616.62$330.60 million62,200166,409Short Interest ↓
Gap Down
CHT
Chunghwa Telecom
$40.00
-1.7%
0.0724.84$31.03 billion45,460102,681Short Interest ↓
Positive News
SLP
Simulations Plus
$48.52
-4.9%
0.07105.48$977.58 million98,712171,695
CHMG
Chemung Financial
$45.31
-2.0%
0.088.44$211.33 million4,21113,560Dividend Announcement
Analyst Upgrade
ARTNA
Artesian Resources
$42.75
-4.3%
0.0823.75$402.11 million13,26223,206
ATRI
Atrion
$735.20
-3.5%
0.0941.54$1.32 billion4,3986,656News Coverage
UFCS
United Fire Group
$21.44
-4.2%
0.0939.70$537.74 million80,64576,577Dividend Announcement
Gap Down
PBHC
Pathfinder Bancorp
$17.00
+0.1%
0.109.71$77.91 million7363,190Short Interest ↓
AWR
American States Water
$92.45
-2.4%
0.1136.40$3.41 billion170,982178,192Positive News
FRO
Frontline
$6.80
-5.7%
0.1226.15$1.34 billion1.68 million1.75 millionUpcoming Earnings
Gap Down
ARKO
Arko
$9.79
-4.6%
0.1261.19$1.22 billion349,501539,001News Coverage
Gap Down
ACNB
ACNB
$29.29
-0.3%
0.128.39$254.68 million2,72224,088
STRR
Star Equity
$2.61
-1.5%
0.1332.63$13.37 million141,860391,545Short Interest ↑
ANAB
AnaptysBio
$31.12
-2.1%
0.13111.14$856.05 million119,709302,749
ZTO
ZTO Express (Cayman)
$30.85
-1.9%
0.1438.09$19.16 billion3.45 million3.52 million
CCOI
Cogent Communications
$76.25
-2.9%
0.14152.50$3.64 billion213,830250,047Insider Selling
UG
United-Guardian
$15.97
-6.6%
0.1417.74$73.30 million12,4397,012Dividend Increase
Short Interest ↑
Gap Down
VLGEA
Village Super Market
$21.87
-1.3%
0.1415.96$318.32 million41,20335,721Upcoming Earnings
News Coverage
Positive News
CTHR
Charles & Colvard, Ltd.
$3.10
-2.5%
0.157.38$94.29 million120,671391,054Analyst Upgrade
Short Interest ↓
Positive News
Gap Down
PHI
PLDT
$33.24
-3.4%
0.1614.91$7.18 billion12,74984,048
JBSS
John B. Sanfilippo & Son
$82.91
-3.1%
0.1614.49$950.90 million19,11640,282
HMNF
HMN Financial
$24.01
+0.5%
0.167.46$110.33 million8106,427Short Interest ↓
News Coverage
PFIS
Peoples Financial Services
$48.50
-2.9%
0.169.94$347.89 million11,20512,457News Coverage
CWT
California Water Service Group
$62.95
-3.2%
0.1728.61$3.31 billion193,640211,999Short Interest ↓
Positive News
LANC
Lancaster Colony
$157.59
-2.8%
0.1831.97$4.34 billion57,17592,974Positive News
CLX
Clorox
$174.21
+3.7%
0.1850.35$21.40 billion2.36 million1.48 million
PSA
Public Storage
$327.02
-2.4%
0.1839.07$57.34 billion368,811719,861
REGN
Regeneron Pharmaceuticals
$643.35
-0.7%
0.1910.27$69.19 billion575,586848,898Insider Selling
WMK
Weis Markets
$62.58
-3.7%
0.1915.92$1.68 billion44,12291,548
ED
Consolidated Edison
$78.67
-0.7%
0.2023.48$27.80 billion1.34 million2.37 million
DLR
Digital Realty Trust
$164.76
-0.9%
0.2069.52$46.76 billion1.04 million1.41 millionAnalyst Report
AAME
Atlantic American
$3.97
-1.1%
0.216.61$80.81 million5,823777,154
WEC
WEC Energy Group
$89.17
-1.7%
0.2121.44$28.13 billion733,9261.17 millionInsider Selling
PINC
Premier
$39.01
-0.9%
0.2118.40$4.75 billion340,906572,036
SWX
Southwest Gas
$69.25
-1.4%
0.2116.93$4.18 billion323,182483,745Gap Down
EDRY
EuroDry
$20.71
-2.1%
0.214.06$58.90 million37,55674,407Short Interest ↑
CMS
CMS Energy
$60.13
-1.5%
0.2219.98$17.42 billion789,6791.92 millionAnalyst Revision
MEC
Mayville Engineering
$15.44
-0.9%
0.2345.41$315.55 million54,83177,985Short Interest ↓
Positive News
Gap Down
HIHO
Highway
$4.40
+3.5%
0.23220.11$17.72 million4,95282,766Short Interest ↓
News Coverage
TNDM
Tandem Diabetes Care
$129.66
-2.4%
0.23447.10$8.24 billion302,916676,556
SHEN
Shenandoah Telecommunications
$26.01
-3.2%
0.231.25$1.30 billion241,927232,457Short Interest ↓
NEM
Newmont
$55.94
+0.8%
0.2322.11$44.61 billion4.34 million6.41 millionAnalyst Report
Analyst Revision
PRTH
Priority Technology
$5.96
+0.3%
0.2329.80$412.06 million25,03869,097Short Interest ↑
Gap Down
UTMD
Utah Medical Products
$120.33
-3.3%
0.2331.25$439.33 million17,81310,220News Coverage
BH
Biglari
$147.07
+0.7%
0.230.64$334.73 million6,6405,592Insider Buying
KSPN
Kaspien
$12.85
-9.0%
0.2417.37$32.04 million4,99816,878Gap Down
QGEN
QIAGEN
$56.47
+3.5%
0.2422.06$12.87 billion1.35 million803,747Analyst Downgrade
Short Interest ↓
Gap Up
FDBC
Fidelity D & D Bancorp
$51.79
-3.7%
0.2412.51$292.41 million2,3704,790News Coverage
Gap Down
HE
Hawaiian Electric Industries
$38.76
-2.8%
0.2517.54$4.24 billion152,125490,368Short Interest ↓
SBAC
SBA Communications
$351.05
-1.0%
0.25133.48$38.46 billion247,180616,591Insider Selling
SFM
Sprouts Farmers Market
$26.89
+0.4%
0.2511.39$3.02 billion1.34 million2.32 million
FTS
Fortis
$43.71
-1.4%
0.2621.22$20.67 billion226,311362,300Dividend Increase
Short Interest ↑
HAE
Haemonetics
$51.92
-6.1%
0.2686.53$2.65 billion513,943658,533Gap Down
GILT
Gilat Satellite Networks
$6.75
-4.4%
0.266.55$381.64 million358,3501.09 millionShort Interest ↓
Gap Down
NEE
NextEra Energy
$86.09
-1.3%
0.2671.74$168.92 billion4.34 million7.57 million
MGYR
Magyar Bancorp
$11.72
-1.8%
0.2611.60$83.19 million3,83212,356Dividend Announcement
PEN
Penumbra
$250.16
-3.8%
0.26274.90$9.35 billion92,857269,234Analyst Upgrade
SCPL
SciPlay
$16.39
-1.4%
0.2718.84$2.10 billion178,280591,160Short Interest ↓
Gap Down
PNW
Pinnacle West Capital
$65.26
-2.3%
0.2712.90$7.36 billion875,845989,677Short Interest ↑
AWK
American Water Works
$170.31
-1.8%
0.2740.55$30.92 billion399,319823,853Short Interest ↑
FLO
Flowers Foods
$26.46
-2.1%
0.2825.44$5.59 billion616,5781.19 millionDividend Announcement
Analyst Revision
PCTI
PCTEL
$5.64
-1.2%
0.2862.67$102.87 million17,048149,212
SWKH
SWK
$19.11
-0.5%
0.289.32$244.78 million28,20818,421
OVBC
Ohio Valley Banc
$28.41
+0.4%
0.289.63$135.54 million6,97913,964Short Interest ↑
News Coverage
LPRO
Open Lending
$23.90
-4.0%
0.2840.51$3.02 billion577,9531.02 million
AMEH
Apollo Medical
$94.56
-3.8%
0.2959.47$5.25 billion211,052391,944Gap Down
ERIC
Telefonaktiebolaget LM Ericsson (publ)
$10.12
-3.1%
0.2914.46$33.74 billion4.36 million6.38 millionShort Interest ↑
Gap Down
EXR
Extra Space Storage
$198.79
-2.7%
0.2937.02$26.62 billion458,657733,303Dividend Announcement
AMN
AMN Healthcare Services
$116.49
+1.6%
0.2925.38$5.51 billion402,163355,757
CNF
CNFinance
$4.95
+8.6%
0.308.39$339.48 million278,268105,793Earnings Report
Analyst Upgrade
Short Interest ↓
News Coverage
Gap Down
High Trading Volume
HCSG
Healthcare Services Group
$17.77
-3.6%
0.3018.51$1.32 billion550,222723,416Gap Down
SAFT
Safety Insurance Group
$79.24
-0.4%
0.307.85$1.19 billion54,07564,124Positive News
JCTCF
Jewett-Cameron Trading
$10.63
+2.0%
0.308.57$37.09 million5,8874,653Upcoming Earnings
Short Interest ↑
News Coverage
DUK
Duke Energy
$99.28
-0.9%
0.3025.59$76.38 billion1.81 million3.02 million
ICCH
ICC
$16.50
0.307.78$54.29 million42546
COR
CoreSite Realty
$170.71
-0.3%
0.3082.87$7.55 billion611,282404,825Analyst Report
MITK
Mitek Systems
$16.95
-2.5%
0.3089.22$746.21 million278,909567,621
AGR
Avangrid
$51.67
-1.0%
0.3023.59$20.01 billion230,749537,894
MSVB
Mid-Southern Bancorp
$14.95
0.3030.51$45.15 million214,590Short Interest ↑
Negative News
RMD
ResMed
$251.21
-1.5%
0.3073.67$36.61 billion240,997587,596Insider Selling
AMT
American Tower
$262.87
-1.0%
0.3047.79$119.71 billion1.16 million1.81 million
WSBF
Waterstone Financial
$20.89
-2.7%
0.315.82$520.70 million79,02980,951Insider Selling
News Coverage
Negative News
SR
Spire
$61.49
-2.1%
0.3112.86$3.18 billion254,474320,510Earnings Report
Analyst Downgrade
BOMN
Boston Omaha
$29.78
-0.3%
0.319.25$880.77 million128,651143,581Gap Down
AEE
Ameren
$84.51
-1.5%
0.3122.12$21.73 billion644,8331.28 millionAnalyst Revision
NI
NiSource
$24.99
-1.9%
0.3222.12$9.81 billion1.71 million3.66 million
AEP
American Electric Power
$82.55
-1.5%
0.3217.23$41.58 billion1.64 million2.81 million
GOLD
Barrick Gold
$19.38
-0.1%
0.3217.30$34.47 billion13.97 million17.43 millionAnalyst Report
Analyst Revision
Gap Up
SJM
J. M. Smucker
$130.95
-1.0%
0.3218.42$14.19 billion579,610934,488Earnings Report
Analyst Report
Analyst Revision
News Coverage
CAJ
Canon
$22.46
-1.5%
0.3212.21$23.89 billion136,455304,369
MLAB
Mesa Laboratories
$312.80
-0.8%
0.32336.35$1.63 billion27,06528,172

What Are Low Beta Stocks

Many retail investors assume that you can’t predict the stock market. And since you can’t predict it, they assume that investing in stocks carries a certain amount of risk. Well, as it turns out, there is a way to assess the risk of a particular security: it’s called beta. Low beta stocks are those securities that carry the lowest amount of risk.

How to Use Low Beta Stocks to Minimize Risk and Increase Returns

Beta is essentially a measure of a stock’s volatility. Risk level is one of the most important stats to analyze in terms of investing in stocks. A comparison of a stock’s risk factor to your own level of risk tolerance will help you know whether to buy, sell, or avoid a certain security. Beta is the number that will help you understand a stock’s level of risk and make those decisions.

What Is the Beta of a Stock?

In the simplest terms, beta is a tool that compares how volatile a stock is in comparison to the overall market. The stock market is the “control” and has a definitive benchmark beta of 1.0, while each individual security is the “variable,” with a beta that varies in terms of how much the stock moves around.

A stock that is more volatile than the market has a beta of more than 1.0, while a stock that is less volatile than the market has a beta of less than 1.0. If you’re a short-term trader riding the market waves and looking at stock market gainers, stock beta can let you know which securities might be the riskiest—then you can decide whether or not to get involved.

As you can see from this explanation, risky stocks are not the only ones that carry risk. Every one of the individual stocks can be viewed as a risky stock to some degree, even if the degree is negligible. Even in bull markets, when it seems like the sky’s the limit forever, it’s impossible for a stock to mirror the benchmark.

How to Calculate Beta

The beta of a stock is calculated using regression analysis. In short, regression analysis is all about comparing one stable variable with other changing variables. The formula for calculating a stock’s beta is simple in theory—beta is found by dividing covariance by variance.

Covariance represents how similar or dissimilar two numbers are in their movements—in this case, a stock is being compared to the market. Positive numbers indicate that their movement is similar. Negative numbers indicate that their movements are different.

Variance represents how much the “control” variable bounces around in comparison to its mean—its normal state. To keep it short and sweet, a stock’s beta is calculated with the intention of assessing how similar or divergent a stock’s movement is in comparison to the market—and thereby determining its volatility. Beta, in turn, can be worked into a complex equation to create a Capital Asset Pricing Model (CAPM). This equation helps calculate the expected return of an asset, using its risk-free rate as a starting point (a hypothetical rate of return involving no risk).

Beyond beta, other formulas, such as the Sharpe Ratio—which uses standard deviation—can help investors determine how much additional yield they’ll get for every increase per unit of risk. Then there is tracking error, which helps investors understand how much performance has deviated from the intended benchmark.

As you can see, beta is the gateway stat for an in-depth, computational way of growing equity through leveraging statistical opportunities in the stock market. 

Low Beta Strategy

Low Beta Strategy focuses on investing in securities that have a low beta. These are stocks issued by companies in a sector like consumer goods, food, and utilities. This type of asset tends to avoid wild fluctuations because its line of business is both necessary and consistent. For example, utility companies exert a relative monopoly over their local region and face little competition in their sector.

Low Beta stocks are safer in terms of price when the market is down—they match the market, and don’t wildly plummet while the market is coasting. However, when the market is up, the same logic applies: these stocks gain less than some of their more volatile counterparts.

Some investment strategies actually involving investing in both low and high beta stocks simultaneously. Stocks with a higher beta—which can experience greater price fluctuations—can present opportunities for big gains through short-term trading of these volatility stocks. To offset potential losses, the investor will also buy into stocks with a lower beta and hold onto them for longer periods of time. This statistical arbitrage strategy is referred to as the bet against beta.

How to Reduce Risk in Your Portfolio

Unfortunately, beta is not a catchall indicator that can prevent losing your earnings to risky investments. While beta is a mathematical measure of how volatile a stock is in comparison to the market, it says nothing about other factors, like how a company operates, its debt, or current events that can affect its operations—such as its potential in regard to future earnings.

For example, a company in a stable industry like utilities can be poorly run, on the brink of bankruptcy, and facing a cataclysmic shutdown due to a recent energy-related event—but because it’s historically moved in close tandem with the overall market, it’s beta is low. Doesn’t sound like a good investment, does it?

One way to reduce risk in your portfolio is to diversify your investments. In terms of stocks, this can mean diversifying your portfolio through a range of companies and industries. However, if you want to truly minimize risk, the majority of your portfolio should be invested in stable, established, non-speculative securities, and preferably ones that pay good dividends or offer opportunities for growth.

One of the easiest ways to avoid risk is to invest in mutual funds or ETFs. This type of fund pools money from a number of investors. With a larger amount of money to play with, mutual fund managers can spread it out over a broader range of securities than each individual investor would be able to buy on their own. You can also diversify risk by investing in different types of asset classes. Between stocks, bonds, commodities, real estate, and business ownership, there are a number of vehicles for producing cash flow. A capital asset like a paid-off rental property can even produce free cash flow, unencumbered by expenses (this is every investor’s golden egg).

If your money is diversified, when one of your investments takes a hit, you won’t have to lose all your eggs—you’ve placed them in different baskets. While much ink has been spilled about which type of asset can consistently outperform the others in terms of growth, everyone can agree that at different times one asset outperforms the others; they all carry a degree of historical volatility (even real estate). 

If you do want to pick out which stock comprises your portfolio, another strategy for reducing risk is to invest in established, stable companies—but these companies are stable beyond their beta score. Large blue-chip companies, like those you’ll find in Warren Buffet’s portfolio, have been around for decades. They are well run, well-financed, and have low amounts of debt. Beta says nothing about the degree of competence with which a company is run, although competently-run, long-standing companies usually do have a lower beta score.

Even if you’re trying to avoid too much risk, most financiers would agree that it’s okay to take a small percentage of your portfolio (financial experts such as Benjamin Graham have suggested no more than 5%) and look at cheap stocks to buy. These stocks might be riskier, but they can also provide good returns if they work out. If they don’t, your losses will be marginal.

Is It Smart to Invest in Low Beta Stocks?

While beta is used to analyze risk, it does have some shortcomings. As mentioned, beta is a comparative statistic that says nothing about how a company is run. It’s been described by analysts as a sort of rearview mirror, reflecting what’s behind, but not necessarily what’s ahead (which, by contrast, is very impacted by the degree of managerial competence and current events).

That said, beta can be a good tool for short-game investors looking to minimize risk. For long-term investors, it’s not necessarily that useful.

Moreover, beta is a number that says nothing about a stock’s price movement in terms of whether it’s going up or down. All beta tells you is a stock’s volatility relative to the market. This is especially problematic in light of the fact that investors, especially short-term traders, make their moves based on stock prices. However, in conjunction with other stats that give a more complete picture of a stock and its performance, beta can be a useful tool for assessing a security’s level of risk—for short term investors. Long-term investors will want to get a more complete picture of a company, how it’s run, and its level of debt before making an investment.

Investors should not just look at a stock’s beta, but also examine their own level of risk tolerance. Younger investors building a retirement portfolio can afford to take on more risks. After all, they have decades of investment ahead of them. Older investors nearing retirement want to avoid risk and do what they can to stabilize their portfolio as much as possible since it will become a source of income.

There are many strategies for investing in stocks, and they all depend on the investor's preferred mode of gain. A dividend investing strategy can turn rivulets of pennies into a mighty dividend stream, which is great for investors who want passive income. Day trading is great for investors who are skilled enough to leverage swings in the most volatile stocks at the drop of a hat. Other investors might find themselves somewhere between the long game and the short game, figuring out the best growth stocks to scoop up and sell at a profit weeks or months later.

Institutional investors may make a beta calculation as part of their equity and growth strategy, but it’s not the only tool they leverage for assessing how to respond to systematic risk. They do an in-depth micro and macro analysis of stats like market capitalization and general market volatility. Investors also perform fundamental and financial analysis of a company to consider future growth and dividend yield.

Low Beta Stocks

Beta tells you how risky a stock is by comparing its activity to that of the market. It’s important to combine financial signifiers like beta and even professional analyst ratings with fundamental analysis of a company. Alternatively, you can turn over investment decisions to a money manager.

Assessing the balance between risk and reward as it relates to financial gain is the bread and butter of short-term trading. But if short-term trading is not for you, you may consider other strategies such as searching for dividend-paying stocks, the snowballing equity of which can be rolled back into more dividend stocks. Retail investors can also piggyback invest by mimicking the portfolio of established investors with a track record of success. These strategies can be a much easier way for the average investor to increase their stock market earnings than attempting to leverage stock market beta. However, if you are looking to leverage short positions through day trading or similarly short-term asset growth, beta can be a useful tool for determining the risk of a particular security.


Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.