Low Beta Stocks Beta is the a calculation that measures the relative volatility of a stock in correlation to a particular standard. For U.S. stocks that standard is usually, but not always, the S&P 500. Beta is a form of regression analysis and it can be useful for investors regardless of their risk tolerance. Beta is considered one of the few data points that can be beneficial for practitioners of both fundamental analysis and technical analysis. This page lists stocks that have unusually low beta calculations, meaning there is little correlation between the price moves of these stocks and the S&P 500. Learn more about low beta stocks. Country USA (NYSE & NASDAQ) United States(NYSE & NASDAQ) United States(All Exchanges) Canada United Kingdom Europe Australia Sector All Sectors Aerospace Auto/Tires/Trucks Basic Materials Business Services Computer and Technology Construction Consumer Discretionary Consumer Goods Consumer Staples Finance Industrial Products Medical Miscellaneous Multi-Sector Conglomerates Oils/Energy Retail/Wholesale Services Transportation Utilities All Market Caps Large Cap ($10B+) Medium Cap ($2B-$10B) Small Cap (<$2B) Market Cap MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.Available with a MarketBeat All Access SubscriptionMarketRank™Upgrade to All Access to use the All Ranks Filter Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.Available with a MarketBeat All Access SubscriptionMedia SentimentUpgrade to All Access to use the All Sentiments Filter Analyst consensus is the average investment recommendation among Wall Street research analysts.Available with a MarketBeat All Access SubscriptionAnalyst ConsensusUpgrade to All Access to use the All Ratings Filter Export to Excel CompanyCurrent PriceBetaPE RatioMarket CapVolumeAverage VolumeIndicator(s)MAYSJ.W. Mays$44.06+0.1%0.01489.00$88.72 million14368Earnings ReportNews CoverageFICVFrontier Investment$10.32-0.2%0.0160.71$258.50 million77,95534,714High Trading VolumePVPrimavera Capital Acquisition$5.11+0.2%0.0115.49$274.66 million18,476103,184Gap UpLANVLanvin Group$5.11+0.2%0.0115.49$667.95 million18,476300,328STETST Energy Transition I$10.49+0.1%0.0130.85$316.69 million725,243175,285High Trading VolumeCIZNCitizens$12.00-1.0%0.027.74$67.96 million4,3381,080Dividend CutHigh Trading VolumeZTOZTO Express (Cayman)$27.08-1.5%0.0220.21$16.55 billion1.46 million3.14 millionAnalyst DowngradeOXACOxbridge Acquisition$11.08+1.1%0.03158.29$45.78 million141298News CoveragePLMRPalomar$59.06-0.6%0.0327.47$1.48 billion99,497164,809Insider SellingAnalyst RevisionNews CoverageINSWInternational Seaways$36.85+1.7%0.033.20$1.78 billion535,341491,849News CoveragePBHCPathfinder Bancorp$13.17-1.1%0.046.36$61.96 million3,5602,123Positive NewsBSAQBlack Spade Acquisition$10.330.0441.32$218.22 million3,081199,429ENCPEnergem$10.780.05215.50$36.67 million02,534Positive NewsBWCBlue Whale Acquisition Corp I$10.13+0.1%0.0577.85$67.47 million52,918232,570Positive NewsFANHFanhua$7.69+0.9%0.0514.51$409.35 million107,37287,380Gap UpSIEBSiebert Financial$2.55-4.9%0.0636.43$87.11 million30,20156,191Analyst ReportCULLCullman Bancorp$10.61-0.5%0.0620.11$78.70 million2,167834High Trading VolumeTDCXTDCX$9.09-6.8%0.0716.83$1.39 billion38,49447,829YMMFull Truck Alliance$6.70+0.4%0.0747.86$7.38 billion9.84 million5.03 millionNATNordic American Tankers$3.72+2.2%0.078.86$760.02 million2.53 million2.71 millionPROCProcaps Group$4.25-1.8%0.0813.28$488.52 million4,8369,378Positive NewsIHTInnSuites Hospitality Trust$2.72-17.6%0.0845.34$30.29 million33,61474,864Analyst ReportPositive NewsGap DownOSUROraSure Technologies$5.26-2.8%0.0913.49$396.35 million647,482724,776Analyst DowngradeNews CoverageTNPTsakos Energy Navigation$17.18-0.5%0.091.47$509.27 million170,793250,818CGEMCullinan Oncology$13.11+0.8%0.0910.75$511.69 million296,536360,187Insider SellingAnalyst RevisionNews CoverageGLDICredit Suisse X-Links Gold Shares Covered Call ETN$143.790.0%0.10184.40$57.52 million1,4725,166Dividend IncreaseCHMGChemung Financial$39.300.116.33$185.12 million8,01212,070PNTPOINT Biopharma Global$10.24+1.3%0.1212.19$1.07 billion703,934701,219SDPISuperior Drilling Products$1.17-2.5%0.1214.63$35.09 million41,38474,240Analyst ReportHMNFHMN Financial$18.99+1.3%0.1210.16$84.14 million2,2691,657TRTootsie Roll Industries$38.46-1.4%0.1335.19$2.74 billion109,347128,532Dividend AnnouncementNews CoverageMSVBMid-Southern Bancorp$10.500.1316.15$30.29 million1033,843CHTChunghwa Telecom$40.74+0.3%0.1325.78$31.52 billion31,42276,674Dividend CutMGYRMagyar Bancorp$10.43+0.4%0.138.48$69.50 million1,7713,580GLBSGlobus Maritime$0.91-1.1%0.141.24$18.83 million46,02453,195Earnings ReportAnalyst ReportBLFYBlue Foundry Bancorp$10.25-1.1%0.14512.76$273.94 million64,369105,535Positive NewsOVBCOhio Valley Banc$24.98+0.9%0.149.08$118.22 million2,3082,515Analyst ReportNews CoverageFCALFirst Trust California Municipal High Income ETF$48.68-0.4%0.15128.09$119.25 million6,15517,016Positive NewsGRVYGravity$59.30+1.8%0.165.34$404.77 million8,14214,637COCOVita Coco$28.04+1.3%0.16127.46$1.56 billion491,099828,791IGICInternational General Insurance$9.33+0.9%0.174.53$435.06 million15,47844,182GLGTD$0.68+4.9%0.175.40$94.15 million106,51172,456ARTNAArtesian Resources$49.88-0.8%0.1727.56$474.36 million18,84144,589Positive NewsHRLHormel Foods$40.88+0.6%0.1823.90$22.20 billion1.64 million2.66 millionBIIBBiogen$308.88+1.3%0.1814.34$44.71 billion1.23 million849,196News CoverageNAPADuckhorn Portfolio$13.99+1.2%0.1827.98$1.59 billion1.69 million625,063News CoverageGap UpHigh Trading VolumeCLBKColumbia Financial$19.08-0.5%0.1923.85$2.03 billion139,921170,100Positive NewsACRXAcelRx Pharmaceuticals$1.24+11.7%0.190.18$13.54 million315,467194,625Positive NewsGap UpFROFrontline$14.67+3.1%0.195.06$3.17 billion3.70 million3.42 millionGap UpUTMDUtah Medical Products$97.12-2.2%0.1920.62$360.23 million7,2356,547OPOFOld Point Financial$15.55-0.8%0.217.66$77.93 million2,4245,673Ex-DividendAnalyst DowngradeEURNEuronav$16.31+1.7%0.217.80$3.23 billion1.91 million1.93 millionDividend IncreaseAnalyst DowngradeSELFGlobal Self Storage$5.06-1.0%0.2120.24$56.94 million8,46315,233Positive NewsATHMAutohome$30.08+0.0%0.2113.67$3.78 billion651,345573,712Positive NewsVIRTVirtu Financial$18.38-0.5%0.229.28$3.04 billion798,403748,320BNTXBioNTech$109.25+0.3%0.224.20$26.50 billion507,082702,470LANCLancaster Colony$198.33-0.5%0.2241.67$5.49 billion102,701103,142Analyst UpgradeNATHNathan's Famous$81.30-1.1%0.2216.97$335.31 million6,6276,293Dividend AnnouncementFCAPFirst Capital$28.80+0.2%0.227.33$96.51 million3,4842,103Analyst ReportNews CoveragePositive NewsGap DownBAFNBayFirst Financial$14.500.23181.25$59.52 million106798Positive NewsHAPPHappiness Development Group$2.78-2.5%0.235.79$19.32 million68614,340REGNRegeneron Pharmaceuticals$746.52-0.5%0.2320.29$82.01 billion536,615486,066Analyst ReportBZKanzhun$15.30+2.3%0.24255.00$5.60 billion6.14 million3.34 millionEIGEmployers$38.79-1.0%0.2414.26$1.05 billion109,531149,717UBCPUnited Bancorp$11.60-1.2%0.247.58$69.38 million1,0763,699News CoveragePFISPeoples Financial Services$41.03-2.3%0.258.21$300.33 million3,9779,086Analyst UpgradeNews CoverageGap DownSTERSterling Check$11.82+0.8%0.2584.43$1.14 billion666,896404,429IHiHuman$2.89+4.3%0.259.63$148.39 million10,28316,634News CoverageFVCBFVCBankcorp$10.44-0.1%0.2510.72$185.02 million50,95526,945News CoverageNegative NewsGCBCGreene County Bancorp$31.160.2516.98$530.56 million20,00314,641Insider SellingPPIHPerma-Pipe International$10.55+1.4%0.2514.65$83.24 million5253,454Upcoming EarningsPositive NewsFINWFinWise Bancorp$8.96+0.7%0.256.14$114.14 million22,70716,951Positive NewsGap UpCTRACoterra Energy$24.58+0.1%0.264.69$18.60 billion5.43 million7.42 millionPositive NewsGISGeneral Mills$82.29-0.4%0.2717.77$48.54 billion2.71 million3.15 millionCFFIC&F Financial$55.85-2.5%0.276.50$196.83 million6,10810,247News CoverageESSAESSA Bancorp$16.380.277.84$170.39 million25,23119,871BFCBank First$86.65-1.3%0.2816.26$912.38 million13,87015,409FCNFTI Consulting$191.150.0%0.2830.58$6.50 billion172,337228,951Positive NewsTCBXThird Coast Bancshares$17.12-1.0%0.2810.44$234.94 million44,82836,990Positive NewsJCTCFJewett-Cameron Trading$4.670.2866.72$16.34 million1,0461,593Positive NewsSPOKSpok$12.78-0.4%0.287.94$255.95 million86,016208,859Positive NewsQDELQuidelOrtho$84.74+0.1%0.2946.56$5.64 billion255,296282,062Positive NewsNRPNatural Resource Partners$48.30+0.7%0.293.56$605.96 million10,31918,379Positive NewsPINCPremier$26.07+0.6%0.2916.93$3.09 billion468,985881,450Positive NewsARKOArko$7.98-0.7%0.2916.98$967.25 million148,537276,695CZFSCitizens Financial Services$91.30+0.6%0.2912.53$363.86 million8,5328,191News CoverageCLXClorox$156.65-0.5%0.30270.09$19.46 billion928,856951,013EQCEquity Commonwealth$20.82-0.3%0.3045.25$2.29 billion531,239823,964Analyst UpgradeUSCBUSCB Financial$10.70-0.2%0.3010.19$210.35 million6,81218,381News CoveragePositive NewsGap DownSTCNSteel Connect$0.82-0.6%0.301.49$50.28 million32,87360,296Upcoming EarningsStock SplitPositive NewsGap UpBRBSBlue Ridge Bankshares$9.33+0.6%0.3014.81$175.60 million13,56533,601JBSSJohn B. Sanfilippo & Son$122.36+0.7%0.3021.70$1.40 billion49,82559,162Positive NewsOVLYOak Valley Bancorp$24.89+1.8%0.306.88$202.40 million10,95230,472Positive NewsSAFTSafety Insurance Group$76.38-0.6%0.3042.91$1.14 billion56,51062,674Insider BuyingOCUPOcuphire Pharma$3.76-5.1%0.314.53$82.95 million163,080386,162Positive NewsSWKHSWK$17.52+0.6%0.3115.50$223.11 million1,95015,836Positive NewsICCHICC$15.99-2.5%0.3134.02$51.68 million5,679705Gap DownHigh Trading VolumeLARKLandmark Bancorp$21.55-0.3%0.3111.18$112.77 million6793,203Analyst ReportNews CoverageLRNStride$41.25-0.7%0.3215.80$1.79 billion234,063283,737HSYHershey$255.89+0.3%0.3231.05$52.15 billion691,1231.08 million What Are Low Beta Stocks Many retail investors assume that you can’t predict the stock market. And since you can’t predict it, they assume that investing in stocks carries a certain amount of risk. Well, as it turns out, there is a way to assess the risk of a particular security: it’s called beta. Low beta stocks are those securities that carry the lowest amount of risk. How to Use Low Beta Stocks to Minimize Risk and Increase Returns What Is the Beta of a Stock? How to Calculate Beta Low Beta Strategy How to Reduce Risk in Your Portfolio Is It Smart to Invest in Low Beta Stocks? Beta is essentially a measure of a stock’s volatility. Risk level is one of the most important stats to analyze in terms of investing in stocks. A comparison of a stock’s risk factor to your own level of risk tolerance will help you know whether to buy, sell, or avoid a certain security. Beta is the number that will help you understand a stock’s level of risk and make those decisions. What Is the Beta of a Stock? In the simplest terms, beta is a tool that compares how volatile a stock is in comparison to the overall market. The stock market is the “control” and has a definitive benchmark beta of 1.0, while each individual security is the “variable,” with a beta that varies in terms of how much the stock moves around. A stock that is more volatile than the market has a beta of more than 1.0, while a stock that is less volatile than the market has a beta of less than 1.0. If you’re a short-term trader riding the market waves and looking at stock market gainers, stock beta can let you know which securities might be the riskiest—then you can decide whether or not to get involved. As you can see from this explanation, risky stocks are not the only ones that carry risk. Every one of the individual stocks can be viewed as a risky stock to some degree, even if the degree is negligible. Even in bull markets, when it seems like the sky’s the limit forever, it’s impossible for a stock to mirror the benchmark. How to Calculate Beta The beta of a stock is calculated using regression analysis. In short, regression analysis is all about comparing one stable variable with other changing variables. The formula for calculating a stock’s beta is simple in theory—beta is found by dividing covariance by variance. Covariance represents how similar or dissimilar two numbers are in their movements—in this case, a stock is being compared to the market. Positive numbers indicate that their movement is similar. Negative numbers indicate that their movements are different. Variance represents how much the “control” variable bounces around in comparison to its mean—its normal state. To keep it short and sweet, a stock’s beta is calculated with the intention of assessing how similar or divergent a stock’s movement is in comparison to the market—and thereby determining its volatility. Beta, in turn, can be worked into a complex equation to create a Capital Asset Pricing Model (CAPM). This equation helps calculate the expected return of an asset, using its risk-free rate as a starting point (a hypothetical rate of return involving no risk). Beyond beta, other formulas, such as the Sharpe Ratio—which uses standard deviation—can help investors determine how much additional yield they’ll get for every increase per unit of risk. Then there is tracking error, which helps investors understand how much performance has deviated from the intended benchmark. As you can see, beta is the gateway stat for an in-depth, computational way of growing equity through leveraging statistical opportunities in the stock market. Low Beta Strategy Low Beta Strategy focuses on investing in securities that have a low beta. These are stocks issued by companies in a sector like consumer goods, food, and utilities. This type of asset tends to avoid wild fluctuations because its line of business is both necessary and consistent. For example, utility companies exert a relative monopoly over their local region and face little competition in their sector. Low Beta stocks are safer in terms of price when the market is down—they match the market, and don’t wildly plummet while the market is coasting. However, when the market is up, the same logic applies: these stocks gain less than some of their more volatile counterparts. Some investment strategies actually involving investing in both low and high beta stocks simultaneously. Stocks with a higher beta—which can experience greater price fluctuations—can present opportunities for big gains through short-term trading of these volatility stocks. To offset potential losses, the investor will also buy into stocks with a lower beta and hold onto them for longer periods of time. This statistical arbitrage strategy is referred to as the bet against beta. How to Reduce Risk in Your Portfolio Unfortunately, beta is not a catchall indicator that can prevent losing your earnings to risky investments. While beta is a mathematical measure of how volatile a stock is in comparison to the market, it says nothing about other factors, like how a company operates, its debt, or current events that can affect its operations—such as its potential in regard to future earnings. For example, a company in a stable industry like utilities can be poorly run, on the brink of bankruptcy, and facing a cataclysmic shutdown due to a recent energy-related event—but because it’s historically moved in close tandem with the overall market, it’s beta is low. Doesn’t sound like a good investment, does it? One way to reduce risk in your portfolio is to diversify your investments. In terms of stocks, this can mean diversifying your portfolio through a range of companies and industries. However, if you want to truly minimize risk, the majority of your portfolio should be invested in stable, established, non-speculative securities, and preferably ones that pay good dividends or offer opportunities for growth. One of the easiest ways to avoid risk is to invest in mutual funds or ETFs. This type of fund pools money from a number of investors. With a larger amount of money to play with, mutual fund managers can spread it out over a broader range of securities than each individual investor would be able to buy on their own. You can also diversify risk by investing in different types of asset classes. Between stocks, bonds, commodities, real estate, and business ownership, there are a number of vehicles for producing cash flow. A capital asset like a paid-off rental property can even produce free cash flow, unencumbered by expenses (this is every investor’s golden egg). If your money is diversified, when one of your investments takes a hit, you won’t have to lose all your eggs—you’ve placed them in different baskets. While much ink has been spilled about which type of asset can consistently outperform the others in terms of growth, everyone can agree that at different times one asset outperforms the others; they all carry a degree of historical volatility (even real estate). If you do want to pick out which stock comprises your portfolio, another strategy for reducing risk is to invest in established, stable companies—but these companies are stable beyond their beta score. Large blue-chip companies, like those you’ll find in Warren Buffet’s portfolio, have been around for decades. They are well run, well-financed, and have low amounts of debt. Beta says nothing about the degree of competence with which a company is run, although competently-run, long-standing companies usually do have a lower beta score. Even if you’re trying to avoid too much risk, most financiers would agree that it’s okay to take a small percentage of your portfolio (financial experts such as Benjamin Graham have suggested no more than 5%) and look at cheap stocks to buy. These stocks might be riskier, but they can also provide good returns if they work out. If they don’t, your losses will be marginal. Is It Smart to Invest in Low Beta Stocks? While beta is used to analyze risk, it does have some shortcomings. As mentioned, beta is a comparative statistic that says nothing about how a company is run. It’s been described by analysts as a sort of rearview mirror, reflecting what’s behind, but not necessarily what’s ahead (which, by contrast, is very impacted by the degree of managerial competence and current events). That said, beta can be a good tool for short-game investors looking to minimize risk. For long-term investors, it’s not necessarily that useful. Moreover, beta is a number that says nothing about a stock’s price movement in terms of whether it’s going up or down. All beta tells you is a stock’s volatility relative to the market. This is especially problematic in light of the fact that investors, especially short-term traders, make their moves based on stock prices. However, in conjunction with other stats that give a more complete picture of a stock and its performance, beta can be a useful tool for assessing a security’s level of risk—for short term investors. Long-term investors will want to get a more complete picture of a company, how it’s run, and its level of debt before making an investment. Investors should not just look at a stock’s beta, but also examine their own level of risk tolerance. Younger investors building a retirement portfolio can afford to take on more risks. After all, they have decades of investment ahead of them. Older investors nearing retirement want to avoid risk and do what they can to stabilize their portfolio as much as possible since it will become a source of income. There are many strategies for investing in stocks, and they all depend on the investor's preferred mode of gain. A dividend investing strategy can turn rivulets of pennies into a mighty dividend stream, which is great for investors who want passive income. Day trading is great for investors who are skilled enough to leverage swings in the most volatile stocks at the drop of a hat. Other investors might find themselves somewhere between the long game and the short game, figuring out the best growth stocks to scoop up and sell at a profit weeks or months later. Institutional investors may make a beta calculation as part of their equity and growth strategy, but it’s not the only tool they leverage for assessing how to respond to systematic risk. They do an in-depth micro and macro analysis of stats like market capitalization and general market volatility. Investors also perform fundamental and financial analysis of a company to consider future growth and dividend yield. Low Beta Stocks Beta tells you how risky a stock is by comparing its activity to that of the market. It’s important to combine financial signifiers like beta and even professional analyst ratings with fundamental analysis of a company. Alternatively, you can turn over investment decisions to a money manager. Assessing the balance between risk and reward as it relates to financial gain is the bread and butter of short-term trading. But if short-term trading is not for you, you may consider other strategies such as searching for dividend-paying stocks, the snowballing equity of which can be rolled back into more dividend stocks. Retail investors can also piggyback invest by mimicking the portfolio of established investors with a track record of success. These strategies can be a much easier way for the average investor to increase their stock market earnings than attempting to leverage stock market beta. However, if you are looking to leverage short positions through day trading or similarly short-term asset growth, beta can be a useful tool for determining the risk of a particular security. 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