In this article, we will take a look at the 10 best safe stocks to buy according to analysts.
Market Will End 2024 Positively, Strategist Says
Statistically, November and December tend to be great months for stocks. However, with the economic turmoil in question, will stocks end the year on a positive note? On November 30, Quincy Krosby, chief global strategist at LPL Financial, joined Market Domination on Yahoo Finance to discuss her market thesis. Krosby believes that the market will end the year in “positive territory,” assuming that no unexpected or headline events occur moving forward. She also added that portfolio managers will strive to report gains, and will most likely close books before the end of 2024.
Krosby revealed that the market is very “enthusiastic” about the new administration, despite serious concerns over tariffs. She shared that while 2024 has been a solid year for stocks, some moderation is expected in 2025. She also said that the number of earning revisions coming down for the year ahead is evidence of moderation, adding that if the Fed decides to withdraw its easing cycle plan or alter it, the market is going to be “pretty disappointed.”
She stated that in 2025, the market will have greater funding needs, reaching nearly $7.5-8 trillion, and greater uncertainty along with geopolitical risks. However, despite this, the market has been marching higher and navigating through these risks and is expected to continue doing so. Speaking about “waning business pricing power,” Krosby stated that while consumers have been spending, they are looking for “more bargains.” Companies have also been trying to beat tariffs and figure out which areas of the market are going to get more expensive.
Speaking of market uncertainty, Krosby believes how the market unfolds will be crucial and critical. Overall, she shared her bullish stance on industrials, especially names in the defense, building, and defense manufacturing industries. She also added that stocks in the communication sector, especially those with higher dividend offerings, particularly if the Fed easing cycle goes as planned, are going to perform better in the coming year.
While the future of the Fed cycle and inflationary pressures may be uncertain, some stocks have historically been safe to invest in. That said, let’s take a look at the 10 safe stocks to buy according to analysts.
A financial analyst looking at a monitor displaying the stocks of the public company.
Our Methodology
To come up with the 10 safe stocks to buy according to analysts we consulted multiple reports and also screened for reliable growers using the Finviz stock screener. We compiled an initial list of 30 stocks. We then referred to the 10-year revenue growth rate for each stock and a solid analyst upside, of at least 8%. The 10 safe stocks to buy according to analysts are in ascending order of the analyst upside as of December 9, 2024. We also included the hedge fund sentiment of each 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Safe Stocks To Buy According to Analysts
10. Mastercard Incorporated (NYSE:MA)
Analyst Upside as of December 9, 2024: 8%
10-Year Revenue Growth Rate: 11.5%
Number of Hedge Fund Holders: 131
Mastercard Incorporated (NYSE:MA) is a multinational payment services corporation in the United States that ranks 10th on our list of the safest stocks to buy according to analysts. It facilitates electronic funds transfers through branded debit cards and credit cards. The company provides financial services to large companies, small to medium-sized enterprises, banks, credit unions, and the public sector.
Mastercard Incorporated (NYSE:MA) aims to bring 1 billion people into the digital economy by 2025. To achieve such, the company launched several partnerships and products in the past few months. On November 12, the company unveiled a new platform, Mastercard Biz360, to help businesses streamline their operations using technology and digital tools. Previously, on November 5, the company launched Pay Local, a new service to help digital wallet providers find new ways to pay. At the moment, more than 35 million merchants accept these wallets, positioning the initiative as a success already.
In the third quarter of 2024, Mastercard Incorporated (NYSE:MA) increased its revenue by 13% and net income by 2% year-over-year. During the same quarter, the company saw a 10% increase in gross dollar volume and an 11% increase in purchase volume. Other than payment services, the company is also venturing into value-added services like data analytics, fraud prevention, and cybersecurity solutions, which posted an 18% increase in sales in the third quarter.
Ithaka Group stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q3 2024 investor letter:
“Mastercard Incorporated (NYSE:MA) is one of two leading companies (along with Visa, which we also own) that helps match information and funds between banks that have relationships with card-carrying consumers and banks that have relationships with merchants, thus ensuring payment transactions are reliable and secure. Since the company’s founding in 1966, Mastercard has benefi ted from the growth in personal consumption expenditure, the strong secular shift from cash and checks to credit and debit cards, and a highly profi table business model that generates high incremental operating margins and hence ample and growing free cash fl ow per share. During the third quarter Mastercard’s stock outperformed as an in-line earnings announcement and strong global credit growth helped pull the stock out of a six-month consolidation.”
9. UnitedHealth Group Incorporated (NYSE:UNH)
Analyst Upside as of December 9, 2024: 12%
10-Year Revenue Growth Rate: 11.9%
Number of Hedge Fund Holders: 112
UnitedHealth Group Incorporated (NYSE:UNH) is a multinational health insurance and services company based in the United States that operates several subsidiaries including UnitedHealthcare, Optum, Change Healthcare, and United Health Foundation. The company has recently expanded its services to several new locations and plans to significantly reduce the cost of healthcare for patients as part of its Medicare Advantage Plan for 2025. As part of a recent announcement on November 1, UnitedHealth Group Incorporated (NYSE:UNH) expanded its individual and family plans to 30 more states on the Health Insurance Marketplace.
On the financial front, UnitedHealth Group Incorporated (NYSE:UNH) logged $100.8 billion in revenue, up by nearly $8.5 billion, in the third quarter of 2024. Revenue was primarily driven by growing customers for its Optum and UnitedHealthcare segments. In addition to that, by the end of Q3 2024, customers served by UNH’s commercial domestic offerings grew by nearly 2.4 million to reach 29.7 million. For its 2025 outlook, UNH expects revenues to range between $450 billion and $455 billion, and cash flows from operations are projected to reach $32 billion to $33 billion.
Mairs & Power Growth Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2024 investor letter:
“One great example of this is UnitedHealth Group Incorporated (NYSE:UNH), a long-term holding of the Fund. Founded in 1974 in Minnetonka, Minnesota, UnitedHealth Group has grown to become the largest managed care organization in the United States. UnitedHealth Group is already working on multiple AI use cases that could potentially save the company billions of dollars in efficiencies over the next several years. For instance, the company’s call centers receive more than a million calls per day. AI could potentially divert or resolve customer concerns without human interaction. We fully admit the company is not perfect and has its ups and downs. Earlier this year, the company was caught up in a large data breach from a company it acquired in 2022. Healthcare is also deeply political, and UnitedHealth Group can often find itself in the political crosshairs during an election year. We’ve seen these political risks play out before and believe UnitedHealth Group will again emerge unscathed.”
8. Realty Income Corporation (NYSE:O)
Analyst Upside as of December 9, 2024: 12%
10-Year Revenue Growth Rate: 18.7%
Number of Hedge Fund Holders: 23
Realty Income Corporation (NYSE:O) ranks eighth on our list of the safest stocks to buy according to analysts. The real estate partner invests in commercial real estate across the United States and several countries in Europe. The company is known to be a prominent dividend payer and since its public listing, Realty Income has delivered a compound average annual total shareholder return of 14.1%. In addition to that, the company grew its dividend at a CAGR of 4.3% since its listing and has declared 653 consecutive monthly dividends so far.
In addition to being a reliable dividend payer, Realty Income Corporation (NYSE:O) is also committed to capitalizing on its business strategies. In the third quarter of 2024, the company posted an investment volume of $740.1 million and has spent $48.5 billion in property volume since 2010. In the third quarter of 2024, the company generated net income worth $261.8 million and revenue worth $1.33 billion, up from $1.04 billion in the same quarter in 2023.
Overall, Realty Income Corporation (NYSE:O) owned or held nearly 15,500 properties by the end of September 30, 2024. These properties were leased to 1,552 clients spread across 90 industries. The company has a diversified portfolio which makes it a leader in the real estate sector. Analysts are also bullish on the stock and their median price target represents an upside of 12% from current levels.
Parnassus Investments stated the following regarding Realty Income Corporation (NYSE:O) in its Q3 2024 investor letter:
“Realty Income Corporation (NYSE:O) is poised to benefit from lower interest rates. Because its commercial tenants are mostly on 10-year leases, the stock’s steady dividend stream is attractive in the current environment of slow deceleration in the economy with rates coming down. In this favorable backdrop, the company also continues to execute well.”
7. Berkshire Hathaway Inc. (NYSE:BRK-B)
Analyst Upside as of December 9, 2024: 13%
10-Year Revenue Growth Rate: 6.95%
Number of Hedge Fund Holders: 120
Berkshire Hathaway Inc. (NYSE:BRK-B) is a multinational company with businesses in multiple industries including financial services, insurance, energy, transportation, rail, and utility. The company has ownership rights and control over multiple major companies across the globe, contributing to its position on our list and its strong financial performance.
In the third quarter of 2024, the company logged nearly $93 billion in revenue. Of the total revenue, insurance premiums were $22 billion and its sales and services segment generated $39 billion. While the company saw a slight decline in revenues during the quarter, analysts remain bullish on the stock, and their median price target points to an upside of 13% from current levels.
Berkshire Hathaway Inc.’s (NYSE:BRK-B) competitive edge lies in its diversified business model and strong financial record, making it one of the safest stocks to buy according to analysts. According to Insider Monkey’s database, 120 hedge funds held stakes in Berkshire Hathaway Inc. (NYSE:BRK-B), as of Q3 2024.
6. Microsoft Corporation (NASDAQ:MSFT)
Analyst Upside as of December 9, 2024: 13%
10-Year Revenue Growth Rate: 10.8%
Number of Hedge Fund Holders: 279
Over the past few months, Microsoft Corporation (NASDAQ:MSFT) has accelerated its position through strong partnerships and new product releases. Recently, the company partnered with Accenture and Avanade to help businesses transform their functions using artificial intelligence and Microsoft Copilot. In addition to that, the company also launched new and improved adapted AI models for various industries, addressing the particular AI needs of organizations.
Speaking of MSFT’s position on AI, on November 19, the company reported on the global impact of its artificial intelligence applications. According to the report, more than 85% of the companies in the Fortune 500 are now using Microsoft AI and almost 70% are using Microsoft 365 Copilot. Overall, the company saw widespread adoption of its AI tools and products by prominent names across the globe. These partnerships and advancements helped Microsoft Corporation (NASDAQ:MSFT) report solid financial results, giving it a strong head start to the fiscal year 2025.
In the fiscal first quarter of 2025, the company logged $65.5 billion in revenue, up by 16% year-over-year, and $24.7 billion in net income, up by 11% from the same quarter last year. Microsoft Corporation (NASDAQ:MSFT) attributes its performance to its AI-backed transformation, resulting in improved workflow, operational efficiencies, and happy customers. Overall, analysts are also bullish on the stock and their median price target implies an upside of 13% from current levels.
Baron Opportunity Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q3 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) is the world’s largest software and cloud computing company. Microsoft was traditionally known for its Windows and Office products, but over the last five years it has built a $147 billion run-rate cloud business, including its Azure cloud infrastructure service and its Office 365 and Dynamics 365 cloud-delivered applications. Shares gave back some gains from strong performance over the first half of this year. For the fourth quarter of fiscal year 2024, Microsoft reported a strong quarter with total revenue growing 16%, in line with the Street; Microsoft Cloud up 22%; Azure up 30%; 43% operating income margins; and 36% free cash flow margins. Core Azure growth came in one point shy of expectations, however, due to a soft European market and continued constraints on AI compute capacity. In the same vein, while Microsoft reiterated its fiscal 2025 targets of double-digit top-line and operating income growth, quarterly guidance called for Azure growth to slow a bit before accelerating in the back half of the fiscal year, as capital expenditures increase, yielding an expansion of AI compute capacity. We believe this investment is a leading indicator for growth, with more than half of the spend related to durable land and data center build outs, which should monetize over the next 15-plus years. We remain confident that Microsoft is one of the best-positioned companies across the overlapping software, cloud computing, and AI landscapes, and we remain investors.”
5. AbbVie Inc. (NYSE:ABBV)
Analyst Upside as of December 9, 2024: 16%
10-Year Revenue Growth Rate: 10.9%
Number of Hedge Fund Holders: 68
AbbVie Inc. (NYSE:ABBV) is one of the safest stocks to buy according to analysts. The pharmaceutical company is one of the biggest biotechnology companies in the United States. With an immense focus on advanced research, ABBV is making strides in drug development and treatment discovery. In the third quarter of 2024, the company generated $14.46 billion in worldwide net revenues, an increase of nearly 4%. Of this global net revenues for its immunology portfolio were $7.05 billion, up by nearly 4%. The company also saw significant revenue growth rates in its oncology and neuroscience portfolio, up by 12% and 16% respectively.
Following its growing momentum in pipeline expansion and commercial expansion, the company increased its full-year revenue guidance and quarterly dividend. Aligning with its strategy, AbbVie Inc. (NYSE:ABBV) completed the acquisition of Cerevel during the quarter, expanding its neuroscience portfolio. During the same quarter, AbbVie Inc. (NYSE:ABBV) announced a definitive agreement to acquire Aliada Therapeutics for $1.4 billion, a biotechnology company.
Overall, AbbVie Inc. (NYSE:ABBV) received approvals for major drugs and treatments and also expanded its existing pipelines, positioning it as a leader in the pharmaceutical industry and an emerging one in the biotechnology industry. At the end of Q3 2024, 68 hedge funds were bullish on the stock, according to our Insider Monkey database.
4. NIKE, Inc. (NYSE:NKE)
Analyst Upside as of December 6, 2024: 17%
10-Year Revenue Growth Rate: 5.67%
Number of Hedge Fund Holders: 75
NIKE, Inc. (NYSE:NKE) is an athletic footwear and apparel company, with a market share of almost 35% in the sports footwear category in the United States, ranking fourth on our list of the safe stocks to buy according to analysts. In the fiscal first quarter of 2025, the company generated $11.6 billion in revenue, of which the NIKE Brand revenues were $11.1 billion, NIKE Direct revenues were $4.7 billion, and wholesale revenues were $6.4 billion. In the same quarter, the company saw a 120 basis point increase in gross profits to reach 45.4%. NIKE, Inc. (NYSE:NKE) shares that their results met expectations and expect momentum to grow further, considering its inclination towards more innovative approaches.
NIKE, Inc. (NYSE:NKE) is on track to make a comeback and we say that because in the fiscal first quarter of 2025, the company returned $1.8 billion to its shareholders. Of this, dividends consisted of $558 million, up by 6%, and share repurchases made up $1.2 billion. In addition to that, cash and cash equivalents and short-term investments totaled $10.3 billion, up by $1.5 billion from the previous year. Cash generated by operations was offset by share repurchases, cash dividends, and capital expenditures. Overall, analysts are bullish on the stock and their median price target represents an upside of 17% from current levels.
3. Alphabet Inc. (NASDAQ:GOOGL)
Analyst Upside as of December 9, 2024: 20%
10-Year Revenue Growth Rate: 18.2%
Number of Hedge Fund Holders: 202
Alphabet’s (NASDAQ:GOOGL) ranks third on our list of the safest stocks to buy according to analysts. The company posted solid performance in Q3 2024, driven by its growing demand for search and cloud due to artificial intelligence. The company has also been penetrating the AI sector with significant investments in robust AI infrastructure, top-notch research teams, and a large network of products and platforms.
Aligning with its strategy, Alphabet Inc. (NASDAQ:GOOGL) is ensuring that its existing customers benefit thoroughly from the advent of AI. Recently, the company revealed that new Chromebooks would now come with built-in artificial intelligence features. On the shopping front, Alphabet Inc. (NASDAQ:GOOGL) launched a new artificial intelligence tool to help consumers pick the right products. In addition to that, in an impressive feat, the company’s YouTube total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time.
As of Q3 2024, all products and services with more than 2 billion monthly users use Gemini models. Extending beyond its products, Alphabet Inc. (NASDAQ:GOOGL) is also working to offer Gemini more broadly to developers. Overall, Alphabet Inc. (NASDAQ:GOOGL) is a prominent name in AI and cloud, contributing to its ranking. Analysts are also bullish on the stock and their high price target represents an upside of 40% from current levels.
2. Amgen Inc. (NASDAQ:AMGN)
Analyst Upside as of December 9, 2024: 23%
10-Year Revenue Growth Rate: 5.12%
Number of Hedge Fund Holders: 68
Amgen Inc. (NASDAQ:AMGN) is a biotechnology company headquartered in California, United States, with a commitment to work for patients suffering from serious illnesses. In the third quarter of 2024, the company grew its revenue by 23% and product sales by 24%, driven by a 29% growth in volume. 10 products of its entire portfolio experienced at least double-digital growth in sales during the quarter.
Amgen Inc. (NASDAQ:AMGN) is a safe stock to buy and we say that because of its cash flow situation. During the quarter, the company generated $3.3 billion of free cash flow up from $2.5 billion in the third quarter of 2023. The company attributes its growing cash flow to its business performance and the timing of working capital items. The company’s cash flow performance also allowed AMGN to pay a dividend of $2.25 per share, a 6% increase from the same quarter in 2023. Similarly, AMGN also saw a significant reduction in its principal debt by almost $4.5 billion, year-to-date.
In addition to its strong financial performance and liquidity, Amgen Inc. (NASDAQ:AMGN) is also emerging as a leader in biotechnology by directing more investments to research and development. In the third quarter alone, the company saw a 34% increase in R&D expenses, primarily directed at later-stage clinical programs, marketed product support, and research and early pipeline. Overall, the company’s expansion strategy coupled with its business performance, reflects its financial strength and position in the industry.
PGIM Jennison Health Sciences Fund stated the following regarding Amgen Inc. (NASDAQ:AMGN) in its Q2 2024 investor letter:
“Amgen Inc. (NASDAQ:AMGN) is a large cap global biotech company with a diverse portfolio of marketed and pipeline products. Amgen’s discovery pipeline had led the company to broaden its focus from oncology, immunology, and renal disease to include musculoskeletal, cardiovascular, and neurologic conditions. In addition, Amgen has turned its expertise in antibody manufacturing into a leading position in the development of biosimilars of competitor drugs. Most recently, Amgen shares advanced in 2Q following its announcement that its novel injectable GLP-1 agonist / GIPR antagonist, MariTide, for obesity showed promising interim Phase 2 data and has shown enough promise to warrant advancement into pivotal trials as soon as late 2024. While Eli Lilly and Novo Nordisk will remain the market leaders in the diabetes / obesity space, we think there is room for Amgen to carve out a meaningful share of the market with its antibody-peptide conjugate approach that could enable monthly or better dosing for MariTide.”
1. Eli Lilly and Company (NYSE:LLY)
Analyst Upside as of December 9, 2024: 23 %
10-Year Revenue Growth Rate: 7.25%
Number of Hedge Fund Holders: 106
Eli Lilly and Company (NYSE:LLY) ranks first on our list of the safest stocks to buy according to analysts. The pharmaceutical company sells medicines for serious illnesses in 125 countries and has offices in 18. The company reported a blockbuster quarter in terms of financials, with revenue increasing by 20% to $11.44 billion in Q3 2024. The revenue growth was driven by volume growth from its two key drugs, Mounjaro and Zepbound. Consequently, the company increased its full-year revenue guidance to $45.4-$46 billion.
During the quarter, the company received product approvals and launched new pipeline data for crucial drugs. The company also announced an investment of a staggering $4.5 billion to aid the development of a Lilly Medicine Foundry in Indiana, bringing together competencies in research and manufacturing. Eli Lilly and Company (NYSE:LLY) also unveiled its Lilly Seaport Innovation Center, a research and development center expected to serve as a central facility for genetic medicine.
Overall, excluding the divestiture activity from the olanzapine portfolio, the company’s revenue grew by nearly 42% and worldwide volume increased by 36%. The company’s performance and growth trajectory coupled with its diverse portfolio of drugs and medicines contributes to its position on our list. Analysts are also bullish on the stock and their median price target implies an upside of 23% from current levels.
While we acknowledge the potential of LLY to grow, our conviction lies in the belief that certain 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 LLY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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