Even if past performance is not a guarantee that they will be repeated in the future, inserting stocks in an investment portfolio that always have a return in line with both the reference sector and the main index, could be inefficient as there is no it is added value. Even if they are stocks with excellent dividend yields and attractive growth prospects.
How not to lose money with these actions? Sure a conservative approach could be, but this is generally true, a way to minimize the data. From this point of view, the low 1-year beta of the title could come to the rescue. This figure places BB Biotech among the defensive stocks to buy if markets continue to decline.
The beta of a stock, in fact, expresses the correlation between the stock itself and the market average. When the beta is higher than 1 it means that the stock amplifies the movements of the market. Otherwise, it compresses them instead. This indicator can be calculated on any time frame.
In the specific case of BB Biotech, the 1-year beta is 0.95. It should therefore come as no surprise that its return is in line with the average of the reference market or the main index.
Shares with excellent dividend yields and attractive growth prospects
The title BB Biotech (MIL: BB) marked a last closing price on 16 September at 53.6 euros, down by 2.19% compared to the previous session.
As can be seen from the graph, the current trend is bearish and is directed towards the first price target in the 48.7 euro area. Failure to maintain this level, then, could push down towards the next target in the € 38.80 area. The maximum bearish extension, on the other hand, could go to the 28.90 euro area.
The bulls could take over again in the event of a daily close above EUR 54.8. In this case, returns in the 65 euro area cannot be excluded.
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