Best Low-Volatility Stocks to Buy Now: GOLD, CBOE, SKM & AGRO

Low-Volatility Stocks to Consider Amid Middle East Uncertainty

Concerns over the ongoing conflict involving the U.S., Israel, and Iran have heightened anxiety among investors, as instability in the Middle East could negatively impact global markets and economies. As a result, stock prices are expected to fluctuate. In this environment, focusing on stocks with low beta values—such as Gold.com Inc, Cboe Global Markets, Inc., SK Telecom, and Adecoagro S.A.—may offer a more stable investment approach.

Understanding Stock Beta

Beta is a metric that indicates how much a stock's price moves in relation to the overall market, with the S&P 500 commonly used as the benchmark. A beta of 1 means the stock typically moves in sync with the market. Stocks with a beta above 1 are more volatile than the market, while those with a beta below 1 are less volatile.

For instance, if the market rises by 20%, a stock with a beta of 3 could increase by 60%. Conversely, if the market falls by 20%, that same stock might drop by 60%, highlighting the risks of high-beta investments.

How We Screened for Low-Beta Stocks

To identify stocks that are less sensitive to market swings, we focused on those with a beta between 0 and 0.6. However, beta alone isn't enough to build a strong portfolio, so we included additional criteria:

• Positive Price Change Over the Last 4 Weeks: The stock must have gained value in the past month.
• Average 20-Day Trading Volume Above 50,000: Ensures the stock is actively traded and liquid.
• Share Price of $5 or More: Only stocks trading at $5 or higher were considered.
• Zacks Rank #1 (Strong Buy): Indicates a strong likelihood of outperforming the broader U.S. market in the near term. See the full list of Zacks #1 Rank stocks here.

Out of 25 stocks that met these standards, here are four notable picks:

Gold.com Inc

Gold.com Inc has built a robust presence in the precious metals sector, benefiting from rising gold prices and expanding its reach internationally. The company's diverse revenue streams allow it to adapt to market changes, reinforcing its leadership in the industry.

Cboe Global Markets

Cboe Global Markets is seeing strong growth in options trading, which has boosted its fee income and profitability. The company maintains a healthy balance sheet with low debt and consistently rewards shareholders, making it an appealing choice for investors.

SK Telecom

As a top mobile service provider, SK Telecom is integrating artificial intelligence into its core operations. By prioritizing AI infrastructure and digital transformation, SK Telecom is well-positioned to deliver long-term value to its shareholders.

Adecoagro S.A.

Adecoagro S.A. produces over 1 million megawatt-hours of renewable electricity each year from agricultural byproducts and other sustainable sources. This allows the company to meet much of its own energy needs, reducing costs and reliance on external suppliers.

Explore Zacks' Top Stock Picks

Since 2000, Zacks' leading stock selection strategies have consistently outperformed the S&P 500's average annual return of 7.7%, achieving remarkable average gains of:

• +48.4%
• +50.2%
• +56.7%

You can access their current recommendations at no charge or obligation.

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For more insights from Zacks Investment Research, you can download their report on the 7 Best Stocks for the Next 30 Days. Get the free report here.

Free Stock Analysis Reports

• SK Telecom Co., Ltd. (SKM): Free Stock Analysis Report
• Cboe Global Markets, Inc. (CBOE): Free Stock Analysis Report
• Gold.com Inc. (GOLD): Free Stock Analysis Report
• Adecoagro S.A. (AGRO): Free Stock Analysis Report

This article was originally published by Zacks Investment Research.

Zacks Investment Research