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Low-beta defensive stocks highlighted as alternatives to SPY
The list says each defensive stock screened at a beta of 0.50 or under versus SPY, with positive profitability and historical earnings and revenue growth cited as quality factors.
Benzinga highlighted defensive U.S. stocks positioned as alternatives to the SPDR S&P 500 ETF (SPY), using SPY as the benchmark for correlation. The article frames the approach around stocks with low correlation to SPY, measured through beta and tied to the stock's volatility.
The screening criteria described in the piece call for defensive stocks with a beta of 0.50 or under compared to the SPY, along with “sound fundamentals,” including positive return on equity, return on assets, return on investment, and gross, operating, and net margins. It also says the stocks show positive historical earnings and revenue growth.
As examples, the article points to Procter and Gamble, noting a market capitalization of $330 billion, and describes the company’s consumer segments including beauty, grooming, healthcare, fabric and home care, and baby and family care. It also references Merck, describing its two healthcare sectors, pharmaceuticals and animal care, though additional details are cut off in the provided text.
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