In this article, we identify the top 10 stocks with low volatility to buy now.
The US stock market experienced a turbulent first quarter of 2025, marked by increased volatility and negative returns across the major indices. Uncertainty surrounding the performance of technology stocks, economic data, and trade tensions caused market volatility.
The year began with the revelation of an Artificial Intelligence (AI) software developed in China called DeepSeek. The innovative AI rivalled its US competitors, such as ChatGPT, and was considered revolutionary compared to others, sending shockwaves across the global markets. Reuters reported a global investor sell-off across US indexes, with one of the major tech companies alone losing $593 million in one day. The US government was quick to implement policies aimed at promoting US-listed tech firms, while simultaneously reducing the impact of DeepSeek AI, such as the use of tariffs against trade with Chinese firms.
In February of 2025, the US government’s first round of Tariffs was aimed directly at China in an effort to curb the impact of DeepSeek on the United States’ tech industry. In March, President Trump announced a rate of 54% tariff on Chinese goods, while China retaliated with 34% tariffs on US goods and services. As reported by CNBC, the total tariffs applied on Chinese goods by the United States stand at 145%, as of April 11, 2025, with exemptions on specific sectors such as Technology, Automobiles & Smart Phones. China implemented retaliatory trade tariffs of 125% on American goods and services.
Due to this economic landscape, the uncertainty surrounding interest rates added to market volatility. The Federal Reserve announced it would maintain interest rates between 4.25% and 4.50%. Speaking at a dinner at the Economic Club of Chicago, Federal Reserve Chairman Jerome Powell stated:
“For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
The US economy is considered to be entering “continuous stagflation”, which is defined as continued inflation with very low growth and high unemployment. The Cboe Volatility Index (aka VIX) is one of the indicators that the Fed monitors as part of the broader tools available to assess market conditions. A VIX of 20 or higher suggests a higher-than-normal level of expected price fluctuations. The VIX is currently at 32.64%.
The current market suggests that investors might want to lean toward low-risk stocks to avoid potential financial pitfalls. Low-volatility stocks are currently outpacing the broader market and proving their strength during uncertain times. After two lackluster years, this strategy has emerged as the top-performing investment theme of 2025 among the 13 tracked by Bloomberg Intelligence. Joe Gilbert, portfolio manager at Integrity Asset Management, made the following comment about the low risk stocks:
“Investors are going to have to live with volatility at least for the remainder of this year. The lower volatility names are the place for investors to hide.”
Given this, we will take a look at some of the best low volatility stocks to invest in.
Copyright: jjvallee / 123RF Stock Photo
Our Methodology
In this article, we researched the 20 Companies with the lowest 5-year beta (monthly) between 0.2 and 0.8, using the Yahoo Finance stocks screener. Next, we used Insider Monkey’s Q4 2024 proprietary hedge fund holdings database and identified the 10 most popular hedge fund stocks. The stocks are ranked in ascending order of their hedge fund positions.
At Insider Monkey, we are obsessed with hedge funds. 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. Boston Scientific Corporation (NYSE:BSX)
5-Year Monthly Beta: 0.73
No. of Hedge Fund Holders: 96
Boston Scientific Corporation (NYSE:BSX) is a global medical device company focused on developing, manufacturing, and marketing a broad portfolio of solutions across various interventional medical specialties. This includes products such as the WATCHMAN FLX LAAC device, implantable cardiac devices like defibrillators and pacemakers, along with remote patient monitoring systems. BSX ranks tenth on our list of the best low volatility stocks to consider.
Boston Scientific Corporation (NYSE:BSX) has manufacturing facilities in Canada and Research & Development centres in China. These are likely to be impacted by the recent tariffs announced by the US government on Canada and China, and vice versa.
Despite these challenges, Boston Scientific Corporation (NYSE:BSX)’s strategic acquisitions drive its growth and diversification in the healthcare sector. The company completed its takeover of BOLT Medical for $664 million in January. This was followed by buying SoniVie in March for a value of $540 million, entering the renal denervation (RDN) market.
Guided by strong core values, Boston Scientific Corporation (NYSE:BSX) treats over 44 million patients annually. Demonstrating its dedication to advancement, in 2024, the company invested $1.6 billion in research and development, leading to the launch of approximately 100 new products. Boston Scientific Corporation (NYSE:BSX) reported revenue of $4.56 billion in the last quarter of 2024 (up by 22.44%), beating estimates by $139.91 million, and an EPS of $0.70.
9. Johnson & Johnson (NYSE:JNJ)
5-Year Monthly Beta: 0.48
No. of Hedge Fund Holders: 98
Johnson & Johnson (NYSE:JNJ) is a global healthcare company involved in the research, development, manufacture, and sale of a wide range of products. The company operates through two main segments: Innovative Medicine and MedTech. Guided by core values emphasizing caring, innovation, and ethical practices, JNJ has strived to create a healthier future for everyone for over a century now. JNJ is one of the best low volatility stocks to consider.
Johnson & Johnson (NYSE:JNJ) continues to face criticism due to a litigation case related to ovarian cancer in 2009. Reuters reported that a US court in March of 2025 rejected the company’s attempt to settle all lawsuits for $10 billion. The company estimates that trade tariffs on China will also have an impact of $400 million in 2025, as per CNBC.
Regardless of these headwinds, JNJ has a history of strong financial performance in the pharmaceutical industry, with 65% of its income generated from either being the number one or number two market leader in its segments. Johnson & Johnson (NYSE:JNJ) company’s earnings report for Q1 2025 revealed revenue of $21.89 billion, a 2.4% increase YoY. The company provided guidance for the upcoming quarter to the tune of $22.85 billion. JNJ has a history of consistent earnings and dividend payments. This predictability attracts investors seeking stable returns and lower risk, contributing to less price volatility. The company is often considered a “blue-chip” stock, favored by risk-averse investors.
8. The Progressive Corporation (NYSE:PGR)
5-Year Monthly Beta: 0.38
No. of Hedge Fund Holders: 100
The Progressive Corporation (NYSE:PGR) is a major US insurance provider, primarily known for personal auto insurance, motorcycles, RVs, and watercraft, as well as homeowners and renters’ insurance. Its commercial offerings include auto liability and physical damage for various truck types, general liability and property insurance for small businesses, and workers’ compensation for the transportation sector. PGR is one of the best low volatility stocks to monitor.
The imposition of US trade tariffs can impact The Progressive Corporation (NYSE:PGR) in multiple ways. The main impact would affect their underwriting costs and potentially influence demand for certain insurance products. This includes higher vehicle repair costs, higher vehicle replacement costs, and higher building material costs.
In terms of financials, The Progressive Corporation (NYSE:PGR)’s recent performance indicates continued growth. PGR’s results for Q1 2025 revealed a topline of $22.21 billion, rising by 21%. The company has shown strong premium growth, with net premiums written rising by 17% in the first quarter of 2025 and throughout the preceding months.
The combined ratio is a key financial metric used in the insurance industry to measure an insurer’s underwriting profitability. It represents the percentage of earned premiums used to cover losses and expenses. PGR’s Combined ratio improved from 86.1% last year to 86% in the latest quarter. The Progressive Corporation (NYSE:PGR) also reported an 18% increase in total policies in force across personal and commercial lines, reflecting its strong market position as the second-largest personal auto insurer in the U.S.
7. Philip Morris International Inc. (NYSE:PM)
5-Year Monthly Beta: 0.49
No. of Hedge Fund Holders: 102
Philip Morris International (NYSE:PM) is a US-listed multinational tobacco company with a diverse portfolio of tobacco and nicotine products. The company is working towards a “smoke-free future” by developing and commercializing smoke-free products rather than traditional cigarettes alongside a growing range of smoke-free alternatives marketed under prominent brands like IQOS (heat-not-burn and vapor) and ZYN (oral nicotine pouches).
Philip Morris International (NYSE:PM) continues to push its smoke-free agenda. PM made waves in the consumer discretionary sector earlier this year, after the U.S. Food and Drug Administration (FDA) authorized the marketing of all ZYN nicotine pouch products currently sold by Swedish Match (a PMI subsidiary) in the U.S, as reported by the BBC.
The trade tariffs also seem to have zero bearing on the stock’s performance. Its shares have surged by nearly 35% year-to-date, hitting a fresh 52-week high of $163.08 on April 3. This suggests that PMI’s diverse product portfolio, pricing power, and strategic focus on smoke-free alternatives are helping it navigate the tariff landscape.
Philip Morris International (NYSE:PM) revenue for the last quarter of 2024 was $9.71 billion, beating estimates by $269.71 million. The market currently awaits the release of quarterly earnings for 2025, with analysts estimating a topline of $9.14 billion. Philip Morris International’s (NYSE:PM) ongoing efforts to optimize its supply chain, invest in local production where feasible, and strategically price its products will be crucial in mitigating potential negative effects.
6. Exxon Mobil Corporation (NYSE:XOM)
5-Year Monthly Beta: 0.58
No. of Hedge Fund Holders: 104
Exxon Mobil Corporation (NYSE:XOM) is a global energy and chemical company. The company is involved in the manufacture, trading, transportation, and sale of a wide range of products through 4 main segments, namely Upstream, Energy Products, Chemical Products, and Specialty Products.
Exxon Mobil Corporation (NYSE:XOM) also announced leadership changes within the company, with Karen McKee set to retire and Matt Crocker appointed as President of ExxonMobil Product Solutions Company, with effect from May 1.
Exxon Mobil Corporation (NYSE:XOM) is highly susceptible to headwinds in commodities, namely the price of oil. The Wall Street Journal reported that the price of oil/barrel could be as low as $60. The current global trade landscape is marked by increasing tariffs and trade tensions between the US and retaliatory measures from other nations, particularly China and Canada, which have the potential to impact the company’s export strategy due to lower global demand.
Despite these hurdles, Exxon Mobil Corporation (NYSE:XOM) continues to show stellar performance through its financials. The company had a topline of $83.43 billion for Q4 2024, with an EPS of $1.67. Looking forward, XOM has outlined plans to focus on increasing synergies from acquisitions, growing new business earnings, and achieving further structural cost savings. The company aims to increase Upstream production and high-value product sales, while diversifying by investing in lower emissions opportunities and maintaining a robust capital expenditure program. This includes its project in Guyana, LNG projects globally, alongside advancements in carbon capture and storage technologies.
5. Alibaba Group Holding Limited (NYSE:BABA)
5-Year Monthly Beta: 0.23
No. of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company specializing in e-commerce, retail, internet, and technology. Its portfolio includes Alibaba.com, Taobao, and Tmall. Beyond its core e-commerce operations, Alibaba has expanded into cloud computing (Alibaba Cloud), digital media and entertainment (Youku), and logistics (Cainiao).
Alibaba Group Holding Limited’s (NYSE:BABA) innovative drive and focus on cloud computing and AI make it a pioneer in the technology sector. The Qwen AI model family has achieved remarkable traction, with more than 90,000 derivative models developed globally, making Qwen the most popular among developers across major model families. Its latest version, the Qwen 3, is expected to be released later in April, as reported by Bloomberg.
The trade tensions between the US and China are creating a complex environment for companies like Alibaba Group Holding Limited (NYSE:BABA). HSBC Research suggests that the direct impact on Alibaba’s GMV from US brands might be less than 5%, but expects a decline in overall consumption due to weakened exports. The company’s strong market share in the Asia-Pacific region is expected to shield it from the brunt of US tariffs.
It should be noted that the share price declined after President Trump’s “Liberation Day”. However, the company’s overall performance remains stable. Alibaba Group Holding Limited (NYSE:BABA) has seen its share price rise by over 28% YTD. For the quarter ending Q3 2025, BABA reported revenue growth of 6.67% YoY at $38.6 billion, beating analyst estimates by $313.04 million.
4. Eli Lilly and Company (NYSE:LLY)
5-Year Monthly Beta: 0.5
No. of Hedge Fund Holders: 115
Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company focused on discovering, developing, and marketing human pharmaceuticals. The company offers a wide range of treatments across several therapeutic areas, with a portfolio that includes various insulin formulations under the Humalog and Humulin brands, as well as newer medications like Jardiance, Mounjaro, Trulicity, and Zepbound for obesity and type 2 diabetes.
While pharmaceuticals have often been exempted from direct tariffs, the broader implications of a trade war and potential future tariffs specifically targeting the sector are expected to impact LLY. Eli Lilly and Company (NYSE:LLY) actively collaborates with other pharmaceutical and biotechnology companies, including Incyte, Boehringer Ingelheim, Roche, and others, to advance its research and development efforts across its diverse therapeutic pipeline. The company markets its products in the United States, Europe, China, Japan, and other international markets. To offset the impact of new tariffs on margins, the pharmaceutical giant continues to deliver high-quality medicine to patients globally by setting up local manufacturing to offset fears of supply chain constraints.
Eli Lilly and Company (NYSE:LLY) has made eight acquisitions and signed three agreements over the past 27 months, as per the company’s press releases. These begin from DICE Therapeutics in June of 2023 to the most recent Scorpion Therapeutics in January 2025. These strategic acquisitions are key to achieving continued growth into new markets.
Eli Lilly and Company (NYSE:LLY) stock price surged recently, following the successful completion of a Phase 3 trial for orforglipron, its once-daily oral GLP-1 medication. The drug effectively met both the primary and key secondary endpoints in patients with type 2 diabetes. This positive outcome has significantly increased investor optimism regarding Lilly’s competitive position within the rapidly expanding obesity drug market.
3. Walmart Inc. (NYSE:WMT)
5-Year Monthly Beta: 0.69
No. of Hedge Fund Holders: 116
Walmart Inc. (NYSE:WMT) is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, with operations across numerous countries. The company’s business model focuses on providing a wide range of merchandise at low prices.
Rising fears of inflation among cost-conscious consumers in the United States can lead to declines in consumer buying, which will undoubtedly impact Walmart Inc.’s (NYSE:WMT) topline. The company is largely a brick-and-mortar model, but is taking steps to diversify into a digital model. The company is enhancing its customer experience by integrating AI-powered personalization features, alongside user-friendly updates like social commerce functionalities and streamlined payment options. It is also expanding its brand “SAM’s Club” into China and India, two large online consumer markets.
Walmart Inc. (NYSE:WMT) strives to maintain its low-price strategy, however, the imposition of trade tariffs, particularly between the United States and China, will have a notable impact on retailers like Walmart due to its extensive global supply chains, as many of the goods sold by the company are sourced from overseas, and tariffs on these imports can lead to increased costs. Walmart Inc. (NYSE:WMT) demonstrated a strong financial performance in Q4 FY25, with total revenues up by 4.1% (5.3% on a constant currency basis). Operating income grew by 8.3% (9.4% adjusted, constant currency). E-commerce sales increased by 16%, driven by store-fulfilled pickup and delivery. WMT is one of the best low volatility stocks to monitor.
2. Berkshire Hathaway Inc. (NYSE:BRK-B)
5-Year Monthly Beta: 0.8
No. of Hedge Fund Holders: 131
Berkshire Hathaway Inc. (NYSE:BRK-B) is a diverse holding company operating globally through numerous subsidiaries. The company’s core businesses include insurance, freight rail transportation in North America, and utilities. Alternatively, it has a strong presence in consumer goods, including recreational vehicles, apparel, footwear, toys, jewelry & batteries. Lastly, Berkshire Hathaway engages in distribution (electronics, groceries), franchising (quick service restaurants), logistics, aviation training, and retail (automobiles, furniture, appliances, and various consumer goods).
Berkshire Hathaway Inc. (NYSE:BRK-B) results for Q4 2024 showed operational profit growing by 71% to $14.53 billion. What’s unique about the company’s results is that it has cash reserves of $325 billion. This cash reserve is meant to serve as a cushion in uncertain times, allowing the company to make strategic acquisitions in periods of volatility, when other investors are bullish. The company’s long-standing Chairman, Warren Buffett, is hailed as the “Oracle of Omaha”. One of his most famous quotes is:
“Be fearful when others are greedy and greedy when others are fearful.”
Berkshire Hathaway Inc. (NYSE:BRK-B) has a vast and varied portfolio that reflects a long-term investment strategy across a multitude of industries. The company is known for acquiring companies with a low beta value. More importantly, management knows when to identify opportunities to divest. This was carried out in 2024, long before any other investment firm. Economist James Foord had this to say regarding investing in BRK:
“(The company’s) record cash reserves and recent strong performance make it a compelling buy, especially during market turmoil.”
1. UnitedHealth Group Incorporated (NYSE:UNH)
5-Year Monthly Beta: 0.62
No. of Hedge Fund Holders: 150
UnitedHealth Group (NYSE:UNH) is a diversified healthcare services-based company operating through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.
The current uncertainty regarding interest rates in the United States is expected to impact UNH. Higher interest rates can increase the cost of borrowing, which could affect the company’s ability to finance expansions, acquisitions, or other investments.
UnitedHealth Group (NYSE:UNH) reported revenue growth of 9.8% YoY at $109.58 billion for the first quarter of 2025, with an EPS of $7.20. It should be noted that management recently revised guidance for the next quarter, with revenue expected at $112.45 billion. This led to a drop in the company’s share price by 22%. Economist and analyst James Foord commented on UNH’s recent performance, stating:
“UNH continues to be a very solid company, a good defensive buy to own in hard times.”
Overall, UnitedHealth Group (NYSE:UNH) ranks first on our list of the best low-volatility stocks. While we acknowledge the potential of UNH, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNh but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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