It seems like wherever you put money lately, you just can’t avoid the volatility. So what is an investor to do? One option is to focus on companies that historically have a lower level of volatility and low betas. As simple as this sounds, it’s astounding how often investors don’t look at a firm’s beta, volatility metrics, and/or market cap relative to market swings.
We ran a screen for companies that had low beta relative to the market (beta<1). From this pool, we screened for mid-cap companies because right now we feel that they’re being overlooked, which means there may be greater opportunity. Finally, we screened for companies that had low volatility (30-day volatility-annualized<20). This provides investors with a unique list of companies that illustrate low volatility from multiple points relative to what we’ve all seen recently.
The list is sorted from high to low by quarterly sales growth.
Motorola Mobility (MMI)
Sector | Technology |
Industry | Diversified Communication Services |
Market Cap | $6.39B |
Beta | .1 |
Analyst Sentiment | 20/40 List - Buy/Outperform (Neutral) |
Motorola Mobility Holdings, Inc. is a provider of technologies, products and services that enable a range of mobile and wireline digital communication, information and entertainment experiences. The firm’s 30-day volatility (annualized) is 3.31965. Over the last month MMI has lost 0.51%. The short interest for the firm is 9.60% as of July 15.
QEP Resources (QEP)
Sector | Basic Materials |
Industry | Basic Materials |
Market Cap | $6.01B |
Beta | .1 |
Analyst Sentiment | 12/14 - List Buy/Outperform (Bullish) |
The company operates in independent oil exploration and natural gas along with production. The firm’s 30-day volatility (annualized) is 14.36. Over the last month QEP has lost 18.96%. The short interest for the firm is 2.40% as of July 15.
Apollo Group (APOL)
Sector | Services |
Industry | Education & Training Services |
Market Cap | $6.16B |
Beta | 0.09 |
Analyst Sentiment | 12/22 List - Hold/Neutral (Neutral) |
The company is an education provider for more than 30 years and operates through subsidiaries: The University of Phoenix, Inc., Institute for Professional Development, The College for Financial Planning Institutes Corporation and Western International. The firm’s 30-day volatility (annualized) was 15.53. Over the last month APOL has lost 11.05%.
Family Dollar (FDO)
Sector | Services |
Industry | Discount, Variety Stores |
Market Cap | $ 5.43B |
Beta | 0.08 |
Analyst Sentiment | 16/23 - Hold/Neutral (Neutral) |
The company, together with its wholly-owned subsidiaries, operates a chain of more than 6,200 general merchandise retail discount stores in 44 states, providing low to lower-middle income consumers with a range of merchandise in neighborhood stores. The firm’s 30-day volatility (annualized) was 16.16. Over the last month FDO has lost 17.16%. The short interest for the firm is 3.40% as of July 15.
SAIC (SAI)
Sector | Services |
Industry | Technical Services |
Market Cap | $4.98B |
Beta | 0.22 |
Analyst Sentiment | 11/14 – List Hold/Neutral (Neutral) |
The company offers engineering, systems integration, & technical services along with services to all branches of the the military and government agencies. The firm’s 30-day volatility (annualized) was 16.49. Over the last month SAI has lost 15.56%. The short interest for the firm is 4.50% as of July 15.
We hope this helps investors as they do their own due diligence and look to identify firms that have less volatility relative to the market.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
