5 Low-Beta Stocks With Upside to Buy Amid Ongoing Market Volatility

Market Overview - Wall Street experienced a shaky start to 2025, with indexes retreating from earlier highs due to concerns over rising inflation and fewer anticipated rate cuts by the Federal Reserve [1][5] - The consumer price index (CPI) rose 0.3% in November, marking its largest gain since April 2024, with a year-over-year increase of 2.7% [4] - The Federal Reserve has cut interest rates by 100 basis points since September, with the current benchmark policy rate at 4.25-4.5%, but indicated only two potential rate cuts in 2025 [6] Defensive Stock Recommendations - Investing in defensive stocks from sectors like utilities and consumer staples is advised due to ongoing market volatility [2] - Recommended stocks include: - Atmos Energy Corporation (ATO): Expected earnings growth rate of 5.1%, Zacks Rank 2, beta of 0.71, dividend yield of 2.55% [8] - IDACORP, Inc. (IDA): Expected earnings growth rate of 5.5%, Zacks Rank 2, beta of 0.65, dividend yield of 3.15% [9] - Pinnacle West Capital Corporation (PNW): Expected earnings growth rate of 16.3%, Zacks Rank 2, beta of 0.56, dividend yield of 4.30% [11] - Tyson Foods (TSN): Expected earnings growth rate of 13.2%, Zacks Rank 1, beta of 0.81, dividend yield of 3.60% [13] - United Natural Foods, Inc. (UNFI): Expected earnings growth rate of over 100%, Zacks Rank 1, beta of 0.63 [15] Stock Characteristics - The recommended stocks are categorized as low-beta stocks, with betas greater than 0 but less than 1, making them less volatile compared to the broader market [3]