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Beta is a measurement used to analyze a stock’s volatility as against the movements of the market. A stock with beta more than 1 is more volatile than the market whereas a stock with beta less than 1 is less volatile than the market. A high beta stock is picked by investors who are looking for stocks with high returns; however, there are also higher risks with such a sstock. A few stocks with beta higher than 1 are mentioned below.
Bank of America Corporation (NYSE:BAC)- Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services.
The stock is currently trading around $12 with a Beta Coefficient of 2.40. The P/E ratio is 49.86 with Earnings per share at $0.24 and Yield of 0.33%. In last 52 weeks, the stock’s movement has been of 43.11% within the range of $6.72-$12.44. The trailing twelve months P/E has been 48.60 whereas the forward P/E for year ending 31st December 2014 is expected to be 9.35.
The company’s last announced financial results for year ended 2012 showed revenues of $75.16 billion. The profits of the company have been under stress mainly due to the acquisitions made by the Bank during the financial crisis. Going forward the company is expected to close its deal of selling of International Wealth Management Business outside USA to Julius Baer.
Ford Motor Co. (NYSE:F) – The company is engaged in development manufacture distribution and services of vehicles, parts and accessories worldwide. The company has market presence in North America, South America, Europe, Turkey, Russia and Asia Pacific region.
With Auto Industry seeing signs of improvement and markets picking up worldwide Ford too is seeing its fair share of sales growth. Recently the company announced 46% increase in sales for 2012 in China whereas for the company as a whole there has been a 9% annual increase of sales.
The stock of the company is currently trading around $13 with the Beta Coefficient of 2.26 and Return on Equity of 36.10%. The Earning per Share for the company is 1.42 and P/E is 9.11.
Citigroup Inc. (NYSE:C) – Citigroup Inc., a diversified financial services holding company, provides various financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, wealth management, and transaction services to consumers, corporations, governments, and institutions worldwide. The company operates through two business segments, Citicorp and Citi Holdings. It operates in 39 countries in North America, Latin America, Europe, the Middle East and Africa, and Asia Pacific. At the end of the 4th quarter the company tier 1 common capital ratio under BASEL III was 8.60 marginally higher than the requirement of 8.50. The bank is amidst some repositioning activities where it plans to eliminate 11,000 positions from the group and save costs in tune of $900 million by the end of 2013. The bank has recently sought approval for the second time to buy Back shares in tune of $1.2 billion. Last year the same request had been rejected by the Federal Reserve.
Shares of the company are currently trading near their highest in 52 weeks, around $47.50 with the Beta Coefficient of 2.61. The stock’s P/E is 18.74 and has EPS of $2.49. In last 52 weeks the stock has moved 30.59% within the range of $24.61-$47.92.
American International Group Inc. (NYSE:AIG)- American International Group Inc. provides insurance products and services for the commercial, institutional, and individual customers in the United States and Internationally. The insurance Giant is all set redeem its entire outstanding balance of 7.7% series A-5 junior subordinate Debentures due 2047. The company has been trying to enhance its financial flexibility by trying to lower its debt and improving its interest coverage ratio.
The stock is presently trading around $39.50 with the Beta Coefficient of the company of 3.45. The stock trades twelve Months trailing P/E of 19.37 and forward P/E (for year ending 2014) at 9.9. The earnings per share are $4.15. In last 52 weeks the stock price has increased by 38.98% and have moved within the range of $27.18 and $39.90
Fifth Third Bancorp (NASDAQ:FITB): Fifth Third Bancorp operates as a diversified financial services company in the United States. The company operates through four segments: Commercial Banking, Branch Banking, Consumer Lending, and Investment Advisors. In its recently reported financial results for year 2012 the company announced revenues of $6038 billion with diluted EPS of 1.66. The company operates on a profit margin of 24.78% with Return on Equity of 11.65%.
FITB shares are currently trading around $16 with P/E of 9.87. The Beta Coefficient of the stock is 2.20. The stock in last 52 weeks has traded in the range of $12.04-$16.77.
