We recently published a list of Conservative Stock Portfolio: 10 Best Stocks To Invest In. In this article, we are going to take a look at where Visa Inc. (NYSE:V) stands against other best stocks to invest in from conservative stock portfolio.
Latest reports indicate that hedge funds have been dumping the shares of technology and media companies at the fastest rate in the past six months. For those who mimic the investing strategy of hedge funds for maximum financial gains, this is cause for alarm. The dumping of tech and media firms by billionaires suggests that it is time for investors to consider pouring their money into more conservative stocks to balance portfolios against riskier growth options. These conservative stocks, also sometimes called blue-chip stocks, are well-established companies with a history of stable earnings, reliable dividends, and strong market positions. These stocks are typically less volatile, making them appealing to risk-averse investors seeking steady growth and income. However, recent developments in the global economy and political landscape may influence the performance and attractiveness of conservative stocks.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Prominent analysts are also optimistic about the success of conservative stocks this year. For example, per a report published by finance news platform Barron’s, investment bank Stifel predicts that the S&P 500, which gained 28% in 2024 to reach 6,084 points, may face a correction to the mid-5,000s. Barry Bannister, the Chief Equity Strategist at the bank, attributed the anticipated downturn to slowing GDP growth, persistent inflation, and potential disruptions from the Trump administration. To navigate this expected turbulence, Stifel recommended investing in conservative stocks less vulnerable to economic swings. Similar observations were made recently by Bill Stone from Glenview Trust, who recommended investing in conservative stocks from the healthcare and consumer-staples sectors for 2025.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article we scanned Insider Monkey’s database and picked 10 conservative (safe, reliable and defensive) stocks with the highest number of hedge fund investors. 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 close-up of a modern payments terminal with a pile of credit cards on the side.
Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) is a payments technology firm. One of the main reasons why the stock is a top choice for risk-averse investors is that it operates in the global payments industry. This industry handles trillions of dollars in transactions every year, and Visa is one of the biggest and most reliable players in this field. Since the firm does not issue any credit, but rather only charges transaction fees, it is somewhat shielded from the credit risks linked to other financial stocks. The firm also has one of the highest profit margins in the industry and has delivered double digits revenue and EPS growth consistently. It has paid a growing dividend to shareholders for the last sixteen years as well.
Overall, V ranks 2nd on our list of best stocks to invest in from conservative stock portfolio. While we acknowledge the potential of V as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a 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.
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Disclosure: None. This article is originally published at Insider Monkey.