With Brexit being such a hot topic, investors are seeking both information and tools to help them deal with the ensuing market volatility.
First, a caveat. When the market flips out (even a little bit) traditional valuation goes out the window. That said, here are a few Woo Trader screeners you could use to keep an eye on your favorite stocks and help sort things out as volatility continues.
Related: BREXIT AND THE U.S. STOCK MARKET
Beta is a measure of the volatility, or systematic risk, of a stock in comparison to the benchmark index – which is 1.0. A beta of less than 1 means the security will be less volatile than the benchmark index.
A beta greater than 1 indicates that the security’s selling price will be more volatile than the benchmark index.
Under Reports on the Daily Rankings page, select Risk Calculator. Plug in the tickers of stock(s) in which you are interested, select monthly, weekly or daily sampling. Choose 1 through 5 years of returns. Select a benchmark index from the dropdown menu and finally, choose a risk-free rate (default is 0.3).
Stocks that move slowly over time are considered safer than stocks with wild swings in short periods of time. Although low volatility indicates a safer stock that may or may not correspond to the overall health of the company.
As with Beta, the benchmark index is 1.0, so Volatility of less than 1.0 is considered safer. Volatility of more than 1.0 is considered less safe.
Follow the same procedure as with Beta by selecting Risk Calculator under Reports on the Daily Rankings page. Plug in tickers, select monthly, weekly or daily sampling and choose 1-5 years of returns. Finally select a benchmark index and a risk-free rate.
Even when markets are volatile, finding companies that use shareholder money wisely is a responsible way to invest. Return On Equity (ROE) is the amount of net income returned by the company on money invested by shareholders.
ROE is expressed as a percentage based on the following formula: ROE = Net Income/Shareholder Equity.
The Return On Equity page, accessible by Budding Investors and above, lists stocks by ticker in the left-most column. You can browse the list or look up a stock by typing it into the search box on the far right.
The Return On Equity column (labeled ROE) shows the amount of net income, expressed as a % of shareholder equity. For more on ROE, see: Return On Equity.
It never hurts to get paid to hold a stock. Dividend Yield (expressed as a percent) is calculated by taking the last dividend distribution amount and multiplying by the number of times per year the dividend is distributed. That amount is expressed as a % of the latest price per share of that company’s stock.
Clicking on the Dividend Yield page, reveals a list of stocks (by ticker) and columns indicating both the latest dividend (in $) and the annual yield (in %) that dividend would provide per share of stock.
Related: WHAT IS A MOVING AVERAGE?
This screener reveals both the lowest price of the selected stock over the past year as well as the % change in the price of that stock from the 52-week low. In a volatile period, this information might tell you how low the stock could go before it reaches technical resistance.
The 52-week low is available on the Daily Rankings page by clicking on or searching for any stock in which you are interested. Then click on the ticker and the 52-week low will appear in the box in the upper right corner.