We recently compiled a list of the 10 Best Low Risk Stocks To Buy in 2025. In this article, we are going to take a look at where Visa Inc. (NYSE:V) stands against the other low risk stocks.

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.

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).

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 6^th 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 V ranks 1st on our list of the 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.