×
S&P 500   3,822.69 (+0.03%)
DOW   31,051.76 (+0.34%)
QQQ   284.27 (+0.26%)
AAPL   140.16 (+1.98%)
MSFT   261.53 (+1.97%)
META   163.77 (+1.92%)
GOOGL   2,242.01 (+0.08%)
AMZN   109.48 (+1.94%)
TSLA   674.88 (-3.31%)
NVDA   155.42 (-2.75%)
NIO   21.61 (-3.35%)
BABA   115.74 (-0.87%)
AMD   77.48 (-4.09%)
MU   56.15 (-2.96%)
CGC   3.53 (-2.22%)
T   20.73 (+0.58%)
GE   64.06 (-2.76%)
F   11.53 (-2.37%)
DIS   95.02 (-0.94%)
AMC   13.29 (-0.67%)
PFE   51.18 (+1.03%)
PYPL   71.49 (-0.46%)
NFLX   176.61 (-1.66%)
S&P 500   3,822.69 (+0.03%)
DOW   31,051.76 (+0.34%)
QQQ   284.27 (+0.26%)
AAPL   140.16 (+1.98%)
MSFT   261.53 (+1.97%)
META   163.77 (+1.92%)
GOOGL   2,242.01 (+0.08%)
AMZN   109.48 (+1.94%)
TSLA   674.88 (-3.31%)
NVDA   155.42 (-2.75%)
NIO   21.61 (-3.35%)
BABA   115.74 (-0.87%)
AMD   77.48 (-4.09%)
MU   56.15 (-2.96%)
CGC   3.53 (-2.22%)
T   20.73 (+0.58%)
GE   64.06 (-2.76%)
F   11.53 (-2.37%)
DIS   95.02 (-0.94%)
AMC   13.29 (-0.67%)
PFE   51.18 (+1.03%)
PYPL   71.49 (-0.46%)
NFLX   176.61 (-1.66%)
S&P 500   3,822.69 (+0.03%)
DOW   31,051.76 (+0.34%)
QQQ   284.27 (+0.26%)
AAPL   140.16 (+1.98%)
MSFT   261.53 (+1.97%)
META   163.77 (+1.92%)
GOOGL   2,242.01 (+0.08%)
AMZN   109.48 (+1.94%)
TSLA   674.88 (-3.31%)
NVDA   155.42 (-2.75%)
NIO   21.61 (-3.35%)
BABA   115.74 (-0.87%)
AMD   77.48 (-4.09%)
MU   56.15 (-2.96%)
CGC   3.53 (-2.22%)
T   20.73 (+0.58%)
GE   64.06 (-2.76%)
F   11.53 (-2.37%)
DIS   95.02 (-0.94%)
AMC   13.29 (-0.67%)
PFE   51.18 (+1.03%)
PYPL   71.49 (-0.46%)
NFLX   176.61 (-1.66%)
S&P 500   3,822.69 (+0.03%)
DOW   31,051.76 (+0.34%)
QQQ   284.27 (+0.26%)
AAPL   140.16 (+1.98%)
MSFT   261.53 (+1.97%)
META   163.77 (+1.92%)
GOOGL   2,242.01 (+0.08%)
AMZN   109.48 (+1.94%)
TSLA   674.88 (-3.31%)
NVDA   155.42 (-2.75%)
NIO   21.61 (-3.35%)
BABA   115.74 (-0.87%)
AMD   77.48 (-4.09%)
MU   56.15 (-2.96%)
CGC   3.53 (-2.22%)
T   20.73 (+0.58%)
GE   64.06 (-2.76%)
F   11.53 (-2.37%)
DIS   95.02 (-0.94%)
AMC   13.29 (-0.67%)
PFE   51.18 (+1.03%)
PYPL   71.49 (-0.46%)
NFLX   176.61 (-1.66%)

3 Legendary Low-Beta Stocks Set to Outperform

Thursday, April 21, 2022 | Sean Sechler
3 Legendary Low-Beta Stocks Set to Outperform

These Iconic Low-Beta Stocks Could Continue to Outperform

While going into riskier areas of the market can be exciting and lucrative when the market is moving to the upside, volatility can subject your portfolio to massive drawdowns. That’s why it always makes sense to include at least a few low-beta names in your plans, as these companies allow investors to reduce their downside exposure and passively manage a portfolio over the years. Since many of these stocks are blue-chip names that are beyond their hyper-growth stages, they often pay dividends and generate reliable returns for patient shareholders.

With the way that the tech sector continues to falter given rising interest rates and persistent inflation, it makes sense to explore safer options in the market more than ever. Many of these stocks have already been strong performers in 2022, and with so much uncertainty about the economy still in play, it’s easy to envision a scenario in which this trend continues.

That’s why we’ve put together the following list of 3 legendary low-beta stocks set to outperform. Here’s what sets these stocks apart:

Northrop Grumman Corp (NYSE: NOC)

This aerospace and defense company is legendary thanks to its storied history of U.S. government contracts and a reputation for innovating in the advanced military technology space. With the military operation in Ukraine likely to increase the amount of government spending on defense budgets, companies like Northrop Grumman are in a perfect position to grow their top line over the next few quarters and potentially longer. The firm’s segments include defense services, aeronautics, mission systems, and space systems, and there’s plenty for investors to like about owning a business that generates stable earnings in any economic environment.

With a beta value of 0.72, Northrop Grumman is a lower-volatility name that could offer plenty of upside going forward. The company’s management team recently boosted the dividend by 8%, which is exactly the type of move long-term investors love to see. Shares currently offer investors a 1.35% dividend yield, which is definitely attractive given how inflation continues coming in hot. Northrop Grumman will report its Q1 earnings on April 28th, and investors that have been looking to add shares should certainly keep an eye on how the market reacts to those numbers.

PepsiCo (NASDAQ: PEP)

The beverages industry is essentially dominated by two massive players, which makes them both solid picks for investors given their market-leading positions. While Coca-Cola certainly is a fine low-volatility pick, investors should not overlook PepsiCo, which is a well-managed company that has built a beverage and snack food empire. Did you know that on average, 11 of the 15 best-selling products in convenience stores come from this consumer staples giant?

Whether it's iconic beverage brands like Pepsi, Mountain Dew, 7UP, Tropicana, and Gatorade, or top-selling food brands like Lay’s, Doritos, Ruffles, Tostitos, and Cheetos, it’s safe to say that this company will generate consistently stellar sales for years to come. With plenty of upside in international markets and a goal for cost savings and productivity gains of $1 billion through 2023, this is a consumer-staples name that is absolutely heading in the right direction. Although shares are trading near all-time highs, a 2.52% dividend yield still makes this a great pick for almost any diversified portfolio.

International Business Machines (NYSE: IBM)

While IBM shares carry a beta value of 1.09, it's still less volatile than many other options in the tech sector are could be a great buy at this time following a positive Q1 earnings report. The company topped estimates and forecasted for a strong 2022 in terms of revenue thanks to growing cloud and consulting prospects. If you aren’t familiar with the legendary “Big Blue”, it’s a provider of enterprise IT hardware, software, and services. The opportunity to add exposure to trends like artificial intelligence and hybrid cloud is a no-brainer, plus the company’s margins are already improving after the recent spinoff.

The bottom line here is that IBM operates in a strong area of the tech sector at the moment given how many companies are pursuing digital transformations, which should continue for years to come. With a 5.2% dividend yield and a beta value of 1.09, International Business Machines is a solid tech stock for investors who want exposure to high-upside trends without as much risk as younger growth companies.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Northrop Grumman (NOC)
2.7598 of 5 stars
$461.14-0.8%1.50%12.71Hold$445.44
International Business Machines (IBM)
2.9081 of 5 stars
$140.02-1.3%4.71%22.95Hold$147.25
PepsiCo (PEP)
2.8948 of 5 stars
$166.76+1.7%2.76%22.81Moderate Buy$177.13
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Northrop Grumman right now?

Before you consider Northrop Grumman, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Northrop Grumman wasn't on the list.

While Northrop Grumman currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:


Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastHow to Profit In The Bear Market

Today, Kate is joined by a repeat guest, Rob Isbitts of Sungarden Investment Publishing. Rob specializes in ETF portfolios designed to deliver returns in any kind of market condition, including the current bear. In this conversation, Rob gives specific ideas for handling various allocations in your portfolio, and discusses how to approach inverse ETFs.

MarketBeat 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 MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. 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 | RSS Feeds

© 2022 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.