In this article we look at how to screen for fortress stocks. Fortress stocks are defensive stocks that will hold up well in a volatile and even recessionary environment. Fortunately with the Finviz, screening for fortress stocks is not just something expensive high-end software is able to do. In fact, you can do everything in this lesson with a free account on Finviz so sign up now and add this powerful screening tool to your arsenal.
Here are the filtering criteria that we want to use:
- Low volatility: Beta of less than 1
- Dividend yield greater than 2%
- Expected to grow earnings by more than 5% in the next year
- Expected to have positive The income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... in the next year
A beta of less than 1 means that the stock is less volatile relative to the broader market which is the resilience we want in a fortress stock. The rest of the filters are self explanatory.
Log into Finviz then click on Screener and then the All tab. Here is a screenshot of the filtering settings to change:
One last thing I like to do on this fortress screener is to compare the 52 week ranges. A fortress stock should have a tight 52 week range where the stock is not that far from its 52-week low or 52-week high. The beta setting of “Under 1” handles this for us but I like to compare the output to find the tightest 52 week range. To do this I select the “Technical” view.
I sort by beta in ascending order. As of March 1, 2023, RGCO stands out. Notice the stock trades 34% off its 52-week low, and just -1.43% off its 52 week high. Keep an eye on that “Volume” though as you don’t want to get trapped in a low liquidity stock that no one else is trading. RGCO is a regulated gas utility and so we know utility stocks are often defensive plays. That makes perfect sense that this would be our fortress stock.
Remember, you can do everything in this lesson with a free account on Finviz.