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Seeking a Volatility Shield? 2 Stocks Worth a Look
AWKAmerican Water Works pany(AWK) ZACKS·2025-04-09 00:20

Core Insights - The market has experienced volatility due to tariff discussions, impacting leading stocks negatively [1] - Targeting low-beta stocks can help investors balance their risk profiles during such volatility [1][6] - The Progressive Corp. (PGR) and American Water Works (AWK) are highlighted as potential 'defensive' additions [1][6] Company Performance - PGR shares have increased over 20% in 2025, significantly outperforming the S&P 500 [3] - PGR has consistently exceeded Zacks Consensus EPS estimates by an average of 18.5% over the last four quarters [3] - PGR currently has a Zacks Rank of 2 (Buy) with rising earnings expectations [3] - PGR offers a modest annual yield of 0.2%, appealing to investors despite not being a primary target for income-focused strategies [4] AWK Performance - AWK shares have gained 14% in 2025, contrasting with a 14% decline in the S&P 500 [5] - AWK exceeded both consensus EPS and sales expectations in its latest quarterly results [5] - The company reaffirmed its previous guidance, contributing to positive investor sentiment [5] - AWK provides a stronger income option with a current annual yield of 2.2% and an 8.8% five-year annualized dividend growth rate [5][7]