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 Walmart Inc. (NYSE:WMT) 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).
A manager standing in a hypermarket, pointing out items available for wholesale.
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.
Overall WMT ranks 3rd on our list of the best low risk stocks to buy in 2025. While we acknowledge the potential of WMT 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 WMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
