Seeking Defense? 3 Top-Ranked Low-Beta Stocks Worth a Look

Core Viewpoint - The article discusses the performance of low-beta stocks during recent market volatility, highlighting The Progressive Corp. (PGR), Sony (SONY), and American Water Works (AWK) as defensive investment options due to their positive earnings outlook and favorable Zacks Ranks [1][16]. Group 1: The Progressive Corp. (PGR) - PGR shares have increased over 20% in 2025, significantly outperforming the S&P 500, driven by strong quarterly results [3]. - The company is expected to achieve 7% EPS growth on 16% higher sales in the current fiscal year [3]. - Net premiums earned, a key revenue driver, grew 20% year-over-year in the latest quarter, indicating strong momentum [4]. - PGR shares yield a modest 0.1% annually, appealing more to growth-focused investors rather than income-focused ones [6]. Group 2: Sony (SONY) - SONY shares have also risen over 20% in 2025, outperforming the market, with positive post-earnings movement despite missing consensus expectations [7]. - The company has upgraded its profit guidance, maintaining a favorable outlook for the current fiscal year, and holds a Zacks Rank 1 (Strong Buy) [7]. - SONY offers a 1.9% annual dividend yield, with a 24% five-year annualized dividend growth rate, making it attractive for income-seeking investors [8]. Group 3: American Water Works (AWK) - AWK shares have gained 13% in 2025, contrasting with a decline in the S&P 500, following strong quarterly results that exceeded EPS and sales expectations [9]. - The company reaffirmed its previous guidance, contributing to a positive outlook [12]. - AWK has a current annual yield of 2.2%, nearly double that of the S&P 500, with an 8.8% five-year annualized dividend growth rate [12].