North American equity markets witnessed a massive sell off in the recent past due to certain geopolitical concerns in various regions like Russia, Ukraine and Israel, as well as banking problems in Europe and the Argentine default. According to various reports, Russia is believed to be amassing troops on the border with Ukraine and has taken various stringent economic actions against the U.S and Europe which had imposed sanctions on the former for supporting Ukraine. Moreover, it is believed that U.S. stock indices are trading at peak valuations which could mean a quick sell off on any negative event. Any earlier-than-expected hike in interest rates by the Federal Reserve could also impact equities negatively.
Today, we have picked 12 low beta stocks across sectors which in our view provide a safe investment during the fearful market, reflected in their consistent history of earnings growth, attractive dividends payments and below market price/earnings ratios. The beta of these stocks is below 1 according to Bloomberg calculations. Moreover, the shortlisted stocks have recorded strong and consistent earnings growth during the past two years and are expected to record strong earnings growth during 2014. The selected stocks are currently trading at relatively low forward price-to-earnings (PE) multiples compared to the index and provide attractive dividend yields. During the past three months, a majority of these stocks have accumulated gains with average daily traded volume in excess of 100,000 shares.
|
Company Name |
Exchange |
Ticker |
Sector |
Market Cap |
Last Price |
Average Volume |
Price Change |
EPS Growth |
EPS Growth |
EPS Growth |
1Yr- Fwd PE |
Beta |
Dividend Yield |
|
Compressco Partners |
NASDAQ |
GSJK |
Energy |
0.7 |
21.65 |
136,307 |
-20.1% |
131.1% |
6.7% |
30.5% |
15.1 |
0.84 |
8.5% |
|
PDL BioPharma Inc |
NASDAQ |
PDLI |
Healthcare |
1.5 |
9.45 |
2,179,549 |
12.4% |
6.3% |
24.3% |
23.5% |
4.6 |
0.91 |
7.1% |
|
Cedar Fair LP |
NYSE |
FUN |
Lesiure |
2.8 |
50.69 |
140,909 |
-2.5% |
43.0% |
6.6% |
22.6% |
18.2 |
0.93 |
5.2% |
|
Otter Tail Corp |
NASDAQ |
OTTR |
Utilities |
1.0 |
27.65 |
105,075 |
-4.8% |
11.6% |
29.2% |
12.3% |
16.0 |
0.96 |
4.1% |
|
Corus Entertainment |
TSX |
CJR/B |
Communications |
2.1 |
24.36 |
303,679 |
-1.7% |
3.5% |
6.7% |
13.7% |
13.0 |
0.56 |
3.9% |
|
Contrans Group Inc |
TSX |
CSS |
Industrial |
0.5 |
15.06 |
211,422 |
1.4% |
45.6% |
4.8% |
17.8% |
14.9 |
0.80 |
3.6% |
|
Maiden Holdings Ltd |
NASDAQ |
MHLD |
Financial |
0.9 |
11.69 |
357,702 |
-5.0% |
60.0% |
89.1% |
24.3% |
8.0 |
0.80 |
3.5% |
|
Cracker Barrel Old Country Store Inc |
NASDAQ |
CBRL |
Resturant |
2.3 |
97.15 |
173,071 |
1.6% |
20.8% |
10.7% |
12.5% |
17.4 |
0.81 |
2.2% |
|
Canadian Western Bank |
TSX |
CWB |
Financial |
3.3 |
40.88 |
220,382 |
9.8% |
8.2% |
5.4% |
14.1% |
15.0 |
0.76 |
2.1% |
|
Brinker International Inc |
NYSE |
EAT |
Resturant |
2.9 |
44.43 |
839,735 |
-9.5% |
24.5% |
18.1% |
16.8% |
16.3 |
0.98 |
2.1% |
|
WestJet Airlines Ltd |
TSX |
WJA |
Airlines |
3.7 |
28.89 |
483,270 |
20.4% |
68.9% |
14.5% |
12.8% |
12.5 |
0.43 |
1.4% |
|
Home Capital Group Inc |
TSX |
HCG |
Financial |
3.9 |
55.05 |
246,168 |
12.9% |
16.8% |
15.6% |
14.9% |
13.1 |
0.67 |
1.3% |
Source: Bloomberg
Company Description:
Compressco Partners LP (NASDAQ: GSJK)
Compressco Partners, LP provides compression-based production services to the natural gas and oil exploration and production companies.The company’s services include related liquids separation and gas metering services. Compressco also offers ongoing well evaluations.
PDL BioPharma Inc (NASDAQ: PDLI)
PDL BioPharma Inc. discovers, develops, and markets therapies for serious or life-threatening illnesses, commercially focused on the acute care, hospital setting.
Cedar Fair LP (NYSE: FUN)
Cedar Fair, L.P. owns and operates amusement parks. The company’s parks operate under the Cedar Point, Knott’s Berry Farm, Dorney Park & Wildwater Kingdom, Valleyfair, and Worlds of Fun and Oceans of Fun names. Cedar Fair’s parks are family-oriented theme parks that are located in various areas of the United States.
Otter Tail Corp (NASDAQ: OTTR)
Otter Tail Corporation, through its utility business units, provides electricity and energy services to customers in Minnesota, North Dakota, and South Dakota. The company, through its Varistar Corporation unit, operates manufacturing, plastics, health services, construction, entertainment, telecommunications, and transportation businesses with customers across the United States and Canada.
Corus Entertainment Inc (TSX: CJR/B)
Corus Entertainment Inc. is a Canadian-based media and entertainment company. The company’s core business includes radio, specialty and pay television, as well as children’s publishing and animation, which is sold internationally.
Contrans Group Inc (TSX: CSS)
Contrans Group, Inc. provides transportation services throughout Canada and the United States. The company provides shippers with flatbed, van, dry tank, liquid tank and dump trailer equipment services, as well as third party logistic solutions.
Maiden Holdings Ltd (NASDAQ: MHLD)
Maiden Holdings Ltd., through its subsidiaries, focuses on providing non-catastrophic, customized reinsurance products and services. The company offers its services to small and mid-size insurance companies in the United States and Europe
Cracker Barrel Old Country Store Inc (NASDAQ: CBRL)
Cracker Barrel Old Country Store, Inc. operates restaurants. The company serves various breakfast, lunch, and dinner dishes such as pancakes, sandwiches, fried chicken, and ice cream. Cracker Barrel Old Country Store serves customers throughout the United States.
Canadian Western Bank (TSX: CWB)
Canadian Western Bank is a Schedule I chartered bank which operates in western Canada. The Bank provides commercial loans, energy loans, construction and real estate project financing, and industrial equipment financing. Canadian Western’s retail services include a variety of mortgages, consumer loans, and deposit products.
Brinker International Inc (NYSE: EAT)
Brinker International, Inc. is a restaurant operator who owns, operates or franchises establishments in the United States and internationally. These restaurants offer customers burgers, ribs, salads, steaks, classic Italian fare, and Tex-Mex offerings.
WestJet Airlines Ltd (TSX: WJA)
WestJet Airlines Ltd. is a low-fare airline that provides scheduled passenger jet service across Canada and to United States destinations. The company also provides charter service for Transat A.T. to destinations in the United States, Mexico, and the Caribbean.
Home Capital Group Inc (TSX: HCG)
Home Capital Group Inc. is a holding company operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering deposit, mortgage lending, and credit card issuing services. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, and British Columbia.
