Zacks.com featured highlights include Otter Tail, Ardmore Shipping, Scorpio Tankers and Custom Truck One Source

For Immediate Release

Chicago, IL – August 15, 2022 – Stocks in this week’s article are Otter Tail Corp. OTTR, Ardmore Shipping Corp. ASC, Scorpio Tankers Inc. STNG, Custom Truck One Source Inc. CTOS.

Combat Choppy Markets with These 4 Low-Beta Stocks

Inflationary pressure will probably continue to make the market volatile. To tame inflation, the Fed raised interest rates in June and July and might consider a further hike when it meets again in September.

Hence, creating a portfolio of low-beta stocks is of utmost importance since the securities will deliver healthy returns and provide a shield against volatile market conditions. In this regard, stocks like Otter Tail Corp., Ardmore Shipping Corp., Scorpio Tankers Inc., Custom Truck One Source Inc. are worth betting on.

Understanding of Beta

Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security's price movement relative to the market. In this article, we are considering the S&P 500 as the market.

If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.

For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.

Here are four stocks among 23 that qualified the screening:

Otter Tail Corporation is a leading player in electric utility and manufacturing businesses. For 2022 and 2023, Otter Tail has witnessed upward earnings estimate revisions over the past 60 days. In order to secure more stable cashflows, Otter Tail is planning to invest in rate base growth opportunities.

Ardmore Shipping's outlook seems bright since the company has set a core strategy of developing a modern, high-quality fleet of products and chemical tankers. Building up good commercial relationships for the long term is also a strong focus of Ardmore Shipping. For 2022, ASC is likely to see earnings growth of 318%.

Scorpio Tankers is expected to generate significant cashflows since the company is the largest product tanker owner in the world. Scorpio Tankers has a diversified blue-chip customer base, thereby providing services related to marine transportation of refined petroleum products. In 2022, STNG is likely to see earnings growth of 263.1%.

Custom Truck One Source is a well-known provider of specialty equipment to the rail, electric utility, telecom and other end markets that are infrastructure-related. Custom Truck is accomplishing record production levels, despite many headwinds, as reflected in the completion of more vehicles in the June quarter of this year than any other quarter.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1967634/combat-choppy-market-with-these-4-low-beta-stocks

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Otter Tail Corporation (OTTR) : Free Stock Analysis Report
 
Ardmore Shipping Corporation (ASC) : Free Stock Analysis Report
 
Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
 
Custom Truck One Source, Inc. (CTOS) : Free Stock Analysis Report
 
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