Below we presented the list of 5 Best Low-Risk Stocks to Buy Right Now. For our detailed discussion and a more comprehensive list please see 14 Best Low-Risk Stocks to Buy Right Now.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the best low-risk stocks to buy:
5. Verizon Communications, Inc. (NYSE:VZ)
No of HFs: 65
Total Value of HF Holdings: $2.75 Billion
VZ lost 17.1% in March 2020 and ranks 5th in our list of best low-risk stocks to buy right now. The top hedge fund holder of this stock is D.E Shaw’s DE Shaw which had $439 million invested in the stock at the end of September. An insider recently purchased 18.839 shares at around $53 in February 2020. The stock is up 3% since then. Mott Capital mentioned VZ in its Q4 2019 investor letter:
“Verizon (VZ) rose by 1.7% in the fourth quarter and by 9.2% for the year. Verizon is another company that should benefit as wireless subscribers upgrade their data plans from 4G to 5G. Additionally, the roll-out of 5G and the technology changes that it is likely to usher in will make having wireless data connections in the future more important than today. Again, Verizon appears to be a critical player in 5G and will continue to hold a place in the portfolio.”
Pixabay/Public Domain
4. Walmart Inc. (NYSE:WMT)
No of HFs: 69
Total Value of HF Holdings: $5.49 Billion
WMT lost 6.4% in March 2020. The company saw a huge rise in its digital sales amid the coronavirus pandemic as its customers stayed at home and shopped online. Walmart also launched a premium service in 2020 to compete with Amazon Prime. Recently, the company started testing grocery deliveries to smart coolers placed outside of the houses of customers on their front porches or near doorsteps. Walmart recently announced plans to acquire advertising technology from Thunder Industries.
Pixabay/Public Domain
3. Costco Wholesale Corp. (NASDAQ:COST)
No of HFs: 73
Total Value of HF Holdings: $3.85 Billion
COST lost 11.9% in March 2020 and ranks 3rd on our list. At the end of September, a total of 73 hedge funds tracked by Insider Monkey were long this stock. An insider recently purchased 3,000 shares at $242 in April 2019. The stock is up 46% since then. Saturna Capital Corporation mentioned COST in its Q1 2020 investor letter:
“For those not signed up for Amazon Prime, there’s still Costco, another firm in an enviable position when consumers are stocking for hard times.”
2. Activision Blizzard Inc. (NASDAQ:ATVI)
No of HFs: 93
Total Value of HF Holdings: $4.22 Billion
ATVI lost 12.3% in March 2020. The top hedge fund holder of this stock is Ken Griffin’s Citadel Investment Group which had $625 million invested in the stock at the end of September. An insider recently purchased 1,000 shares at around $80 in August 2020. The stock is up 15% since then. Giverny Capital mentioned ATVI in its Q2 2020 investor letter:
“Activision is a leading maker of complex, highly interactive video games, including World of Warcraft and Call of Duty. We’ve followed the company for years (and owned it personally) and believe it is well positioned to win increasing hours of consumer attention. But Activision has struggled to come up with hit games in recent years. It relies heavily on new iterations of Call of Duty, plus the mobile game Candy Crush. A highly interactive multi-player game can cost upwards of $100 million to create. We’re not sure work-from-home is conducive to this kind of large-scale engineering and animation work.
Activision clearly benefits from the pandemic as people stay at home, but this won’t last forever. As Activision caught a tailwind this spring, we opted to exit the business. At best, we were premature. The stock has risen about 20% since we sold it as the stay-at-home theme strengthens.”
Pixabay/Public Domain
1. Amazon.com Inc (NASDAQ:AMZN)
No of HFs: 245
Total Value of HF Holdings: $43.7 Billion
AMZN lost 12.3% in March 2020 and ranks 1st on our list of best low-risk stocks to buy right now. The top hedge fund holder of this stock is Ken Griffin’s Citadel Investment Group which had $18.9 Billion invested in the stock at the end of September. An insider recently purchased 1 share at around $3,212 in October 2020. The stock is down 3% since then. L1 Capital International Fund mentioned AMZN in its Q3 2020 investor letter:
“Several investments in the technology sector were trimmed on valuation grounds with the proceeds used to increase our investment in Amazon. Amazon’s successful flywheel business model and Amazon Web Services are well known. However, we believe the current share price under‑appreciates:
– The consistency and longevity of Amazon’s growth potential in its key businesses;
– The importance of additional revenue streams such as advertising which are high margin and growing rapidly; and
– The strengthening barriers to competition and competitive advantages arising from Amazon’s stepped‑up investment in logistics and other infrastructure.”
Pixabay/ Public Domain
Aso see 15 Best Beaten Down Stocks to Buy Now and 15 Best Undervalued Stocks to Buy Now
