In this article, we will take a detailed look at 10 Best Low Risk Stocks To Buy in 2025.
Risk is a key consideration in investing and portfolio management, as investors generally aim to achieve the maximum return per minimum unit of risk. The true risk of a stock is impossible to measure or quantify, but there are several metrics, such as the volatility of returns or equity beta, that can gauge the magnitude of risk relative to other companies. The equity beta of a stock represents the sensitivity, or correlation, between the returns of the stock and the returns of the broad market. An equity beta below one means that the stock does not respond as much as the broad market to different events, such as macroeconomic developments, monetary policy changes, etc. When a stock with low risk (low beta) is introduced into a portfolio, the overall expected risk of the portfolio is significantly reduced, while the expected return is usually not significantly compromised, leading to a better risk/return profile.
READ ALSO: 12 Best Long Term Low Risk Stocks to Buy Right Now
There are times when the risk profile of a portfolio becomes a more important consideration than maximizing returns, such as during periods of economic uncertainty, market downturns, or when an investor nears retirement and prioritizes capital preservation over growth. In these situations, investors often shift their focus from aggressive returns, such as growth stocks, to minimizing potential losses, adjusting their portfolios to include more low-beta stocks, bonds, or other defensive assets.
Market volatility, geopolitical tensions, and changes in monetary policy can also drive investors toward safer investments to protect their capital. Understanding and managing risk, particularly through measures like equity beta, allows investors to navigate uncertain times without exposing themselves to unnecessary losses. While low beta stocks are usually more mature and low growth businesses, they can deliver strong returns during bear markets, as capital actively starts flowing into them and inflates their market valuation. Consequently, by rotating into low risk stocks at the right time, investors can achieve two goals at once – not only reduce the risk of the portfolio, but also significantly improve the potential return profile.
We believe the broad stock market is currently at a crossroads and has just entered a new “Trump 2.0 regime,” which will be dominated by unprecedented actions and measures. Not only does the new US administration employ tools such as tariffs that were not used on a large scale for decades, but it has also started some strategic political shifts that could threaten decade-long alliances (such as the US-Europe alliance). All of this, coupled with aggressive cost-cutting in federal budgets and spending, has introduced a lot of uncertainty and difficult-to-digest news for investors.
The US stock market is also in correction mode since the inauguration date, and there is no certainty about when this will stop. With many surveys showing deteriorating spending and business outlooks, a slowdown in GDP growth with a potential bear market becomes a probable scenario for the following quarters. These are the times when buying low risk stocks could significantly improve the risk profile of one’s portfolio without compromising the potential return. Low risk stocks, as gauged by the equity beta, are usually found in sectors like consumer defensive, healthcare, as well as some financials and energy, which tend to have more predictable and stable business models. Given this, we will take a look at some of the best low risk stocks to buy now.
A businessperson in a modern office, studying risk analysis data to make a strategic decision.
Our Methodology
To compile our list of low risk stocks, we used Finviz to filter the companies that have an equity beta below 1.0x. Then we compared them with Insider Monkey’s proprietary Q4 2024 database of hedge funds ownership and included in the article the top 10 names with the highest number of hedge funds that own the stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 79
Equity Beta: 0.41x
The Procter & Gamble Company (NYSE:PG) is a global consumer goods corporation that manufactures and sells a wide range of personal care, household, and hygiene products. Its portfolio includes well-known brands in categories such as beauty (Pantene, Olay), grooming (Gillette), health care (Oral-B, Vicks), fabric and home care (Tide, Febreze), and baby and feminine care (Pampers, Always). PG operates in numerous international markets through a combination of direct sales, retail partnerships, and e-commerce. The company focuses on product innovation, brand management, and supply chain efficiency to maintain market leadership. Sustainability, digital marketing, and emerging market expansion are key strategic priorities.
The Procter & Gamble Company (NYSE:PG) has delivered 26 consecutive quarters of 2% or better organic sales growth, averaging 5.5% organic sales growth over 6.5 years. The company’s performance has been broad-based with 8 of 10 categories growing organic sales in the first half of fiscal 2025, and 5 of 7 regions showing organic sales growth. While 85% of the business comprising North America, Europe Focus, Asia Pacific Focus, Europe Enterprise, and Latin America regions performed well with 4% growth in the first half, the remaining 15% in Greater China and Asia, Middle East, Africa faced challenges with organic sales down 5%.
The Procter & Gamble Company (NYSE:PG) is managing current headwinds with a mid- and long-term view, maintaining willingness to adjust short-term outlook to protect long-term brand health. PG’s long-term growth objectives remain focused on delivering organic sales growth modestly ahead of market growth, targeting core earnings per share growth of mid- to high single digits with annual margin expansion of 30 to 70 basis points. The company maintains a strong innovation pipeline and is leveraging AI and advanced technologies to optimize media buying, advertising development, and supply chain operations.
Despite current market volatility and challenges, management remains confident in its integrated strategy focusing on portfolio superiority, productivity, constructive disruption, and maintaining an empowered, agile organization. With an equity beta of only 0.41x, PG is one of the best low risk stocks to buy in 2025.
9. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 81
Equity Beta: 0.47x
The Coca-Cola Company (NYSE:KO) is a global beverage corporation that produces, markets, and distributes a diverse portfolio of non-alcoholic drinks. Its brands include Coca-Cola, Diet Coke, Sprite, Fanta, Minute Maid, Dasani, and Smartwater, among others. The company operates through a franchised bottling system, where independent partners manufacture and distribute its products worldwide. KO serves multiple markets, including retail, food service, and e-commerce, with a strong presence in both developed and emerging economies. Its strategy focuses on brand expansion, product innovation, sustainability initiatives, and adapting to shifting consumer preferences, such as reduced-sugar and functional beverages.
The Coca-Cola Company (NYSE:KO) demonstrates significant growth potential with a boundless and enduring opportunity in the beverage industry, as only 70% of beverages in developed markets and 32% in developing markets are commercial beverages. The company has built an impressive portfolio of 30 billion-dollar brands, with 15 brands created organically and 12 acquired brands scaled to billion-dollar status. Their marketing transformation through Studio X has made their marketing faster, more effective, and more efficient, driving over $1 billion in value creation. The company’s financial performance has been robust, achieving 9% CAGR over the last 5 years and reaching a 30% operating margin by the end of 2024. Their ecosystem, comprising 120,000 suppliers, 3,000 production lines, 5,000 warehouses, and 30,000 red trucks, serves 2.2 billion servings daily through 33 million customer outlets.
The Coca-Cola Company (NYSE:KO) maintains a strong balance sheet with 87% of net revenue coming from core business, up from 48% in 2015, and has seen return on invested capital increase by 6 points in the same period. Looking ahead, management remains committed to their long-term algorithm and aims to exceed it on a sustained basis, while continuing to invest smartly to drive quality growth for the future. The company’s ecosystem, including bottling partners, supplier base, and customers, is positioned strongly to continue delivering enduring value over time. With an equity beta of only 0.47x, KO is one of the best low risk stocks to buy now.
8. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 98
Equity Beta: 0.49x
Johnson & Johnson (NYSE:JNJ) is a global healthcare company that develops and sells pharmaceuticals, medical devices, and consumer health products. Its pharmaceutical segment focuses on treatments for immunology, oncology, neuroscience, and infectious diseases, while its medical devices division provides surgical, orthopedic, and cardiovascular solutions. The company’s consumer health brands include Tylenol, Band-Aid, Neutrogena, and Listerine. JNJ operates in international markets, distributing its products through hospitals, pharmacies, and retail channels. Its strategy emphasizes research and development, innovation in healthcare technology, and global expansion, with a strong focus on regulatory compliance, sustainability, and public health initiatives. The US-based company ranked second on our recent list of 7 Cheap Global Stocks to Buy Right Now.
Johnson & Johnson (NYSE:JNJ) remains committed to growing its MedTech business at the upper range of the 5-7% market growth rate over the period 2022-2027, having achieved 6.2% operational growth in the previous year. The company has significantly transformed its portfolio through substantial R&D investments, spending $3.1 billion in 2023 and $3.7 billion in 2024, with projections indicating that one-third of sales will come from new products by 2027. Strategic M&A activities, including $32 billion investments in cardiovascular care through acquisitions like Abiomed and Shockwave, have strengthened the company’s market position. The company has successfully shifted its portfolio composition, moving from 18% of business in high-growth categories in 2018 to 50% currently.
Johnson & Johnson (NYSE:JNJ) has implemented significant organizational changes, including decentralizing operations by moving 32,000 associates into individual business units to enhance specialization and customer intimacy. The company maintains a strong position in robotics, with successful platforms like VELYS in orthopaedics achieving presence in 30 markets and completing over 100,000 procedures. Despite facing headwinds in China due to volume-based procurement and anticorruption campaigns, JNJ remains committed to the Asian market, recognizing that 60% of patients live in APAC. The company’s unique model of combining pharmaceutical and medical technology businesses positions it advantageously for future healthcare integration, particularly in enabling same-visit testing, diagnosis, and treatment. Given the low 0.49x equity beta, JNJ is one of the best low risk stocks to buy in 2025.
7. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 100
Equity Beta: 0.39x
The Progressive Corporation (NYSE:PGR) is an insurance company specializing in auto, home, and commercial property coverage. It is one of the largest auto insurers in the US, offering policies for personal and commercial vehicles, motorcycles, boats, and RVs. PGR operates through direct-to-consumer sales, independent agents, and online platforms, leveraging data analytics and telematics for pricing and risk assessment. The company also provides homeowners insurance through affiliates and partners, and has a strategy focused on competitive pricing, digital innovation, customer acquisition, and expanding its market share in both personal and commercial insurance segments.
The Progressive Corporation (NYSE:PGR) delivered exceptional performance in 2024, with net premiums written growing approximately 21% YoY to $74.4 billion, representing nearly $13 billion in premium growth. The company achieved record policy growth, adding more than 5 million policies in 2024, which was more than twice the previous highest annual rate of policy growth in its history. PGR demonstrated strong profitability with a combined ratio of 88.8%, well below their target of 96% and approximately 6 points lower than 2023. In claims management, PGR maintains a competitive advantage through efficient operations, with the combination of loss costs and loss adjustment expenses typically representing between 70% and 75% of total company expenditures.
Looking ahead, The Progressive Corporation (NYSE:PGR) is actively monitoring potential impacts from new tariffs and has developed models to assess their implications on loss costs. The company is well-positioned to handle these challenges, maintaining margins below their 96% target combined ratio, and continues to invest in technology and efficiency improvements, particularly in claims processing, where they’ve achieved significant gains through innovations like photo estimating and machine vision technology. With an equity beta of 0.39x, PGR is one of the best low risk stocks to buy in 2025.
6. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 102
Equity Beta: 0.51x
Philip Morris International Inc. (NYSE:PM) is a global tobacco company that manufactures and sells cigarettes and smoke-free products outside the United States. Its leading brand, Marlboro, is one of the most recognized in the industry. The company is shifting towards reduced-risk alternatives, including its IQOS heated tobacco system and nicotine pouches, as part of its long-term strategy to transition away from traditional cigarettes. PM operates through a global distribution network, serving markets across Europe, Asia, Latin America, and the Middle East. A key strategic focus of the company is innovation and adaptation as its legacy tobacco business has been pressured by regulatory and other exogenous threats.
Philip Morris International Inc. (NYSE:PM) has achieved significant milestones in its smoke-free transformation, with smoke-free business now generating 40% of revenues and over 40% of gross profits. The company has expanded its smoke-free product presence to 100 markets, with the category approaching $15 billion in revenue and becoming self-financing through its own profitability. IQOS has surpassed Marlboro’s revenues, reaching over $11 billion in just 10 years compared to the 60-70 years it took Marlboro to reach that level. The company has successfully transitioned from volume declines to sustainable 2% volume growth since 2020, marking a significant shift in its business model.
In terms of financial performance, Philip Morris International Inc. (NYSE:PM) has lifted its revenue growth from 4-6% to 6-8% while maintaining strong pricing power and adding volume growth. The company’s smoke-free portfolio now demonstrates higher gross margins than the combustible business, with smoke-free margins almost 3 points higher than combustible products. Looking ahead, PM has set an aspirational target of achieving two-thirds of revenues from smoke-free products by 2030, with progress already evident as the top 5 operating income markets are at the 60% mark. With an equity beta of only 0.51x, PM is one of the best low risk stocks to buy now.
5. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 104
Equity Beta: 0.63x
Exxon Mobil Corporation (NYSE:XOM) is a global energy company engaged in the exploration, production, refining, and distribution of oil, natural gas, and petrochemical products. It operates through three main segments: Upstream, which focuses on oil and gas exploration and production; Downstream, which includes refining and fuel marketing; and Chemical, which produces petrochemicals used in industrial and consumer products. XOM has operations in multiple regions, supplying energy to transportation, industrial, and residential markets, and invests in carbon capture, hydrogen, and biofuels as part of its long-term energy transition strategy while maintaining a focus on operational efficiency and resource development. The Texas-based company ranked first on our recent list of 11 Best Crude Oil Stocks To Buy Right Now.
Exxon Mobil Corporation (NYSE:XOM) delivered strong financial results in 2024, achieving earnings of $34 billion, their third highest result in a decade despite softer market conditions. The company generated cash flow from operations of $55 billion and delivered a return on capital employed of 13%, with their 5-year average ROCE being an industry-leading 11%. Operationally, the company achieved record performance in their Product Solutions business and reduced methane intensity by more than 60% since 2016. In the Permian Basin, XOM achieved record production from both Heritage ExxonMobil assets and Pioneer assets, projecting production growth from 1.5 million oil-equivalent barrels per day at the end of 2024 to 2.3 million barrels per day by 2030. In Guyana, the company reached record production of 650,000 barrels per day in just 10 years from discovery.
Looking ahead to 2025, Exxon Mobil Corporation (NYSE:XOM) plans to bring online several major projects expected to deliver more than $3 billion in earnings potential in 2026. The company’s long-term outlook includes plans to build an even more advantaged asset portfolio with 60% of Upstream production from advantaged assets by 2030, achieve 80% growth in high-value product sales, and take an additional $6 billion in cost out of the business. Compared to other IOCs over the last 5 years, XOM has grown cash flow from operations at roughly 15% compounded annual growth rate, more than double the closest competitor, and distributed more than $125 billion in dividends and buybacks. With an equity beta of 0.63x, XOM is one of the best low risk stocks to buy in 2025.
4. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 115
Equity Beta: 0.46x
Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company specializing in the discovery, development, and commercialization of medicines for diabetes, oncology, immunology, and neuroscience. Its key products include insulin therapies, GLP-1 receptor agonists for diabetes and obesity, cancer treatments, and drugs for autoimmune and neurological disorders. LLY operates in major global markets, distributing its medicines through healthcare providers, pharmacies, and hospitals. The company invests heavily in research and development to drive innovation in biologics, gene therapy, and next-generation treatments. Its strategy focuses on expanding its drug portfolio, advancing precision medicine, and addressing unmet medical needs.
Eli Lilly and Company (NYSE:LLY) has several significant pipeline catalysts anticipated for the remainder of the calendar year, including readouts from the orforglipron program, a small molecule oral GLP-1 nonpeptide agonist with studies in type 2 diabetes and obesity. The company will also receive the first readout from the retatrutide program, a triple-acting injectable incretin being studied in overweight patients with osteoarthritis of the knee, which could potentially offer a significant step change in weight loss outcomes for higher BMI patients who cannot reach their goals on medicines like tirzepatide. In oncology, 2025 is particularly important for the Jaypirca (pirtobrutinib) program, with at least two randomized studies reading out, including one against chemoimmunotherapy in newly diagnosed CLL patients and another head-to-head study against ibrutinib in CLL.
Eli Lilly and Company (NYSE:LLY) maintains a strong position with Verzenio in breast cancer, currently seeing about 15% of new patient starts going to their competitor in overlapping populations, while remaining the standard of care for the high-risk population. Looking ahead, LLY has identified three potential game-changing opportunities: EMBER-4 in breast cancer, Lp(a) in cardiac disease, and Alzheimer’s disease prevention, with the latter particularly significant as it involves preventing disease onset through early intervention with blood testing. With a strong portfolio of drugs under research and a low equity beta of 0.46x, LLY is one of the best low risk stocks to buy in 2025.
3. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 116
Equity Beta: 0.66x
Walmart Inc. (NYSE:WMT) is a global retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. It serves consumers through physical stores, e-commerce platforms, and a hybrid online pickup and delivery model. WMT’s business segments include Walmart US, Walmart International, and Sam’s Club, offering a wide range of products, including groceries, apparel, electronics, and household goods. The company focuses on cost leadership, supply chain efficiency, and digital transformation to enhance customer experience. WMT continues to expand its presence in omnichannel retail, financial services, and healthcare while prioritizing sustainability and operational innovation.
Walmart Inc. (NYSE:WMT) is focusing on improving customer experience and supply chain efficiency through technology, with an emphasis on building scalable and resilient core platforms. The company has successfully rolled out a single global platform for e-commerce and marketplace across multiple countries including Mexico, Chile, and Canada. In terms of customer-facing technology, WMT is leveraging GenAI to enhance search capabilities, allowing customers to use natural language queries instead of traditional keyword searches. The company has made significant strides in automation, particularly in its fulfillment centers, partnering with vendors like WITRON, Symbotic, and Kanap to implement cutting-edge picking and delivery systems. WMT processes approximately 10 petabytes of data daily, equivalent to about 8 trillion pages of textual data, which is utilized for forecasting, anomaly detection, and improving customer recommendations.
Walmart Inc. (NYSE:WMT) maintains a balanced approach to technology development, strategically deciding which technologies to build internally versus partner for, while actively contributing to the open source community. A notable achievement has been the development of the Element AI platform, which enables the company to design and safely deploy machine learning and GenAI models with appropriate infosec and privacy controls. The company’s technology initiatives have shown tangible results, with one tool alone saving approximately 4 million hours, representing roughly 10% productivity improvement for developers. With an equity beta of only 0.66x, WMT is one of the best low risk stocks to buy now.
2. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 150
Equity Beta: 0.67x
UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company operating through two main segments: UnitedHealthcare, which provides health insurance and benefits, and Optum, which offers healthcare services, technology, and pharmacy benefits management. It serves individuals, employers, and government programs, including Medicare and Medicaid, in the US and international markets. Optum leverages data analytics, telehealth, and value-based care to improve healthcare delivery and cost efficiency. UNH focuses on expanding digital health solutions, integrating care services, and enhancing affordability while navigating regulatory frameworks. Its strategy emphasizes innovation, operational efficiency, and long-term healthcare system improvements.
UnitedHealth Group Incorporated (NYSE:UNH) delivered 2024 revenues of over $400 billion and adjusted earnings per share of $27.66, well within their initially projected outlook ranges. The company navigated significant challenges in 2024, including the first year of CMS Medicare rate cuts, Medicaid member redeterminations, and the Change Healthcare cyberattack. For 2025, the company expects to serve an additional 1.9 million people across commercial and public sectors, with revenues approaching $340 billion. In Medicare Advantage, UNH expects growth of up to 800,000 people in individual, group and special needs offerings, with strong AEP results including near record retention levels. The company is making significant strides in digital transformation, with UHC mobile app visits up 66% YoY and app registrations increasing nearly 100%.
On the operational efficiency front, the operating cost ratio of UnitedHealth Group Incorporated (NYSE:UNH) improved about 150 basis points over the prior year, driven by business portfolio initiatives and accelerated operating efficiencies. Looking ahead, UNH remains committed to its long-term 13% to 16% growth objective, reflecting both the opportunities and capabilities of the organization. The company expects cash flow from operations to approach $33 billion, or 1.2x net income in 2025, demonstrating strong financial capacity. With strong long-term guidance in place and an equity beta of only 0.67x, UNH is one of the best low risk stocks to buy in 2025.
1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Equity Beta: 0.96x
Visa Inc. (NYSE:V) is a global payments technology company that facilitates digital transactions through its network, enabling secure electronic payments between consumers, businesses, and financial institutions. Its core services include credit, debit, and prepaid card processing, as well as digital payment solutions and fraud prevention technologies. The company operates worldwide, partnering with banks, merchants, and fintech companies to expand payment accessibility, and focuses on innovation in contactless payments, blockchain, and AI to enhance transaction security and efficiency. The California-based company ranked 6th on our recent list of 10 Companies That Are Buying Back Their Stock in 2025.
Visa Inc. (NYSE:V) has evolved significantly, growing from 450 million credentials in the 1990s to 4.7 billion credentials by the end of 2024, while scaling tokens from under 50 million in 2016 to 12.6 billion tokens recently. The company sees enormous market opportunities across three key areas: $41 trillion in addressable consumer spend with over 55% currently underserved, $200 trillion in commercial and money movement solutions, and $520 billion in potential revenue opportunity for value-added services. The company’s growth strategy focuses on four key actions: strengthening card-based consumer payments, expanding reach in consumer payments including non-card payments, driving commercial payments and money movement penetration, and delivering innovative value-added services.
Visa Inc. (NYSE:V)’s value-added services have shown strong growth, reaching $8.8 billion in revenue in 2024, with all four portfolios exceeding $1 billion in revenue and growing at mid-teens or better rates. The company expects continued strong performance through a combination of durable top-line growth, leading operating margins, and consistent capital returns to shareholders. Over the last 5 years, V has demonstrated its commitment to shareholder returns by returning $17 billion in dividends and $58 billion in buybacks.
Overall, Visa Inc. (NYSE:V) ranks first on our list of the 10 best low risk stocks to buy in 2025. While we acknowledge the potential of V as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than V but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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