Beta is one measurement of risk. Beta, also known as the beta coefficient, measures how the expected return of a stock is correlated to the performance of the stock market as a whole. A positive beta, such as a 1 or 2, means that the stock usually tracks the market in general. A zero beta means that the stock price is not correlated with the stock market at all. And a negative beta means that the stock tracks the market inversely.
A beta of 1 means the stock tracks the market directly, e.g. 1% up in the market means 1% up for the stock. The higher the beta, the more riskier the stock, yet the greater the return potential. For example, if the stock market increases by 3%, a stock with a beta of 2 should increase by 6%; in other words, twice as much. So for day traders, high beta stocks may be the way to go.
The following stocks have betas above 2.5, PE ratios less than 20, PEG ratios less than 1, and market caps greater than $500 million.
GrafTech International Ltd. (GTI) The stock has a beta of 3.1 It has a PE of 5.3 and a PEG of 0.49 .
United States Steel Corporation (X) The stock has a beta of 2.8 It has a PE of 4.2 and a PEG of 0.62 .
DryShips Inc. (DRYS) The stock has a beta of 2.8 It has a PE of 1.1 and a PEG of 0.01 .
Arris Group, Inc. (ARRS) The stock has a beta of 2.7 It has a PE of 12.6 and a PEG of 0.72 .
Joy Global Inc. (JOYG) The stock has a beta of 2.7 It has a PE of 9.0 and a PEG of 0.43 .
Teck Cominco Limited (TCK) The stock has a beta of 2.7 It has a PE of 4.6 and a PEG of 0.92 .
ON Semiconductor Corp. (ONNN) The stock has a beta of 2.6 It has a PE of 8.6 and a PEG of 0.58 .
PMC-Sierra, Inc. (PMCS) The stock has a beta of 2.6 It has a PE of 7.7 and a PEG of 0.54 .
Yanzhou Coal Mining Co. (YZC) The stock has a beta of 2.6 It has a PE of 3.8 and a PEG of 0.76 .
NVIDIA Corporation (NVDA) The stock has a beta of 2.6 It has a PE of 8.1 and a PEG of 0.56 .
Another way to get a much higher return than what a sector or industry is doing, without buying on margin, is by using Ultra Long ETFs, a list of which can be found at WallStreetNewsNetwork.com.
Author does not own any of the above.
By Stockerblog.com
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