Beta measures the volatility of a stock’s price relative to the overall market. A beta of less than 1 indicates lower volatility, making such stocks attractive to investors. Using the TipRanks Stock Screener tool, we have identified three stocks, Merck (NYSE:MRK), AbbVie (NYSE:ABBV), and Li Auto (NASDAQ:LI), with a beta of less than 0.5. Also, all of these stocks have an upside potential of more than 10%, as projected by analysts.
Let’s take a closer look at these three stocks.
Merck & Company, Inc.
MRK is a global healthcare company that develops pharmaceuticals, vaccines, and animal health products. Currently, MRK has a beta of 0.28.
The company’s initiatives to diversify its revenues beyond Keytruda, its blockbuster cancer drug, are encouraging. Also, its strategic efforts to grow through acquisitions, such as the recently announced deal to buy Eyebiotech, an ophthalmology biotechnology company, bode well for long-term growth.
On TipRanks, MRK has a Strong Buy consensus rating based on 16 Buy and two Hold ratings. The analysts’ average price target on Merck stock of $145.08 implies 12.1% upside potential from current levels. Over the past six months, shares of the company have gained 23%.
AbbVie, Inc.
ABBV is a biopharmaceutical company that focuses on developing therapies for complex diseases. Currently, the stock has a beta of 0.39.
The potential of AbbVie’s drug, Elahere, to more than double its total addressable market bodes well for near-term top-line growth. Interestingly, the drug was able to meet its primary endpoint in the Phase 2 PICCOLO study in platinum-sensitive ovarian cancer (PSOC) patients.
Overall, Wall Street is optimistic about the stock. The stock has a Strong Buy consensus rating based on 13 Buys and three Holds. The analysts’ average price target on AbbVie stock of $185.43 implies a 11.33% upside potential from current levels. Shares of the company have gained 9.6% over the last six months.
Li Auto
LI is a Chinese electric vehicle manufacturer. Li Auto stock has a beta of 0.48. Importantly, rising vehicle deliveries, expanding margins, and the introduction of new models, including Li Mega, its first pure-electric minivan, point to its growth potential.
Overall, LI has a Strong Buy consensus rating based on 11 Buy and one Hold ratings. The analysts’ average price target on Li Auto stock of $35.96 implies an upside potential of 85%. Shares of the company have declined 45.2% in the past three months.
Concluding Thoughts
Investors could consider taking a look at MRK, ABBV, and LI stocks, as they all boast low betas, meaning their stock prices tend to fluctuate less than the overall market. This makes them potentially attractive holdings during market downturns.
It is worth noting that investors can use TipRanks’ Experts Center tool to discover top stock picks as well.
