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Top Low-Beta Stocks to Play the Broader Market

Tuesday, 6 Mar 2012 | 6:18 PM ET

In the constant chase for higher returns in the broader market, is it time to put on low-beta trades?

The “Fast Money” traders on Tuesday picked their favorite stocks whose returns don’t exactly mirror the market’s ups and downs.

Ron Insana picked Philip Morris International.

“This is a stock that has been delivering,” he said, calling it “not recession-proof but certainly recession-resistant.”

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NEW SLIDESHOW: Top Apple-Related Stocks for 2012

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Tim Seymour of EmergingMoney.com echoed Insana and added another cigarette maker as a global play.

Lorillard “is a cash-flow machine,” he said, touting its exposure to smokers in Asia — and it has a 4 percent dividend yield.

Karen Finerman of Metropolitan Capital Advisors owns three stocks with low beta: Mattel, CVS and Target.

“Of them, right now I think Mattel is probably the closest to fairly valued,” she said. “Probably Target is where we have the most upside from right here. We still own all three.”

Davita was Jon Najarian’s top pick.

“I think this is a phenomenal play, and a beta of just about 0.4,” he said. “In other words, I love this thing in terms of not being an up-and-down loser on bad days and a big winner on the up days. It’s just a steady performer.”

Najarian’s other picks were TJX and O’Reilly.

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Trader disclosure: On March 6, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: J. Najarian is long IBM call spreads; J. Najarian is long QCOM call spreads; J. Najarian is long GDX call spreads; J. Najarian is long GDXJ call spreads; J. Najarian is long CRM call spreads; J. Najarian is long FIO call spreads; J. Najarian is long KERX call spreads; Finerman is long (AAPL); Finerman is long (BAC); Finerman is long (JPM); Finerman is long (HPQ); Finerman is short (SPY); Finerman is short (IWM); Finerman is short (MDY)

For Ron Insana
No Disclosures

For Abigal Doolittle
Doolittle is long (SDS)

For Mark Mahaney
Firm makes market in (AMZN)

For Geoffrey Scott
Firm owns foreclosed homes in Phoenix

  Price   Change %Change
CVS
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DVA
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LO
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MAT
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ORLY
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PM
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TGT
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TJX
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Contact Fast Money

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  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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