Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you worry about stock market volatility? For ideas on how to search for low volatility stocks, we ran a screen.

We began by screening the small-cap sector for low-volatility stocks, with average intra-day volatility over the last month under 2% (meaning, on average, these stocks have traded within a 2% range each day).

We then screened for those with strong profitability compared to industry peers, with higher gross, operating, and pretax margins than their industry averages by at least 5% on each margin. This indicates that these companies are taking a greater percentage of their revenues as profits, and they also have stronger control over their cost structures.

(click to enlarge)

Do you think these stocks offer less risk? Use this list as a starting point for your own analysis.

List sorted by difference between pretax margin and industry average.

1. Resource Capital Corp. (NYSE:RSO): Operates as a specialty finance company that focuses primarily on commercial real estate and commercial finance in the United States. Market cap at $442.34M, most recent closing price at $5.32. Average intra-day volatility over the last month at 1.71%. TTM gross margin at 64.09% vs. industry average at 42.43%. TTM operating margin at 64.09% vs. industry average at 40.1%. TTM pretax margin at 39.33% vs. industry average at 22.41%.

2. Entertainment Properties Trust (NYSE:EPR): Develops, owns, leases, and finances entertainment and related properties in the United States and Canada. Market cap at $1.97B, most recent closing price at $42.55. Average intra-day volatility over the last month at 1.84%. TTM gross margin at 55.63% vs. industry average at 42.43%. TTM operating margin at 55.63% vs. industry average at 40.1%. TTM pretax margin at 32.68% vs. industry average at 22.41%.

3. Alexander's Inc. (NYSE:ALX): Engages in leasing, managing, developing, and redeveloping properties in the greater New York City metropolitan area. Market cap at $2.B, most recent closing price at $397.47. Average intra-day volatility over the last month at 1.27%. TTM gross margin at 51.42% vs. industry average at 42.43%. TTM operating margin at 51.42% vs. industry average at 40.1%. TTM pretax margin at 32.48% vs. industry average at 22.41%.

*Profitability data sourced from Fidelity, all other data sourced from Finviz.

Source: 3 Low Risk Small-Caps With Strong Profitability