Wednesday, September 19, 2012

Top Stocks for Day Traders

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% rise in the market means 1% rise 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%, twice as much. So for day traders, high beta stocks may be the way to go.

The following stocks have betas above 3, PE ratios less than 20, PEG ratios less than 1, and market caps greater than $500 million.

Pier 1 Imports, Inc. ( PIR ) has a beta of 4.3 . It has a PE of 11.4 and a PEG ratio of 0.62 .

Dana Holding Corporation ( DAN ) has a beta of 4.2 . It has a PE of 8.6 and a PEG ratio of 0.67 .

ACCO Brands Corporation ( ACCO ) has a beta of 3.8 . It has a PE of 6.4 and a PEG ratio of 0.69 .

Unisys Corporation ( UIS ) has a beta of 3.8 . It has a PE of 4.8 and a PEG ratio of 0.48 .

Sonic Automotive Inc ( SAH ) has a beta of 3.5 . It has a PE of 13.7 and a PEG ratio of 0.70 .

Dollar Thrifty Automotive Group, Inc. ( DTG ) has a beta of 3.5 . It has a PE of 13.9 and a PEG ratio of 0.93 .

American International Group, Inc. ( AIG ) has a beta of 3.4 . It has a PE of 3.0 and a PEG ratio of 0.21 .

Office Depot Inc ( ODP ) has a beta of 3.4 . It has a PE of 10.6 and a PEG ratio of 0.96 .

Tenneco Inc. ( TEN ) has a beta of 3.3 . It has a PE of 10.4 and a PEG ratio of 0.41 .

Valassis Communications, Inc. ( VCI ) has a beta of 3.1 . It has a PE of 11.1 and a PEG ratio of 0.88 .

Another way to get a much higher return than the performance of a sector or industry, without buying on margin, is by using Ultra Bullish ETFs, a list of which can be found at WallStreetNewsNetwork.com.


Disclosure: Author did not own any of the above at the time the article was written.


By Stockerblog.com

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