In this article, we will look at the 10 Best Debt-Free S&P 500 Stocks to Buy Now.
Debt-free S&P 500 stocks are getting more attention as investors look for companies that can keep operating without depending heavily on borrowing. That matters in a market where interest rates, refinancing costs, and credit conditions can significantly affect earnings quality.
Invesco says the quality factor focuses on companies that are “highly profitable, carry low levels of debt, and generate stable earnings,” traits that can be “more resilient during periods of economic stress or rising inflation.” The firm also notes that the S&P 500 Quality Index screens for “strong profitability, clean accounting, and solid balance sheets.” MFS makes the same point in a broader quality framework, saying “disciplined capital allocation, resilient earnings power, and balance sheet strength” support “superior compounding.” State Street adds that quality investing focuses on companies with “low debt, stable earnings and high profitability,” especially when “a company’s ability to service debt and provide visibility on earnings becomes more important.”
Against this backdrop, debt-free S&P 500 stocks deserve a closer look. With that in mind, let us now take a look at the 10 Best Debt-Free S&P 500 Stocks to Buy Now.
Our Methodology
We used the Finviz stock screener to identify S&P 500 stocks whose enterprise value (EV) is lower than their market capitalization. An EV-to-market-cap ratio of 1.0 or below typically indicates that a company has little to no debt. We then limited our final selection to stocks that have recently reported noteworthy developments likely to influence investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Palo Alto Networks, Inc. (NASDAQ:PANW)
On May 27, 2026, Wedbush raised the firm’s price target on Palo Alto Networks, Inc. (NASDAQ:PANW) to $300 from $225 and maintained an Outperform rating on the shares. Wedbush cited increased confidence in the company’s platformization story and the “strong reception” of the CyberArk acquisition. The firm also said Palo Alto’s “accelerating cross-sell momentum” is being underestimated by the Street and that recent field checks support its view that AI will be the biggest growth catalyst for cybersecurity in the past 20 years.
On the same day, Benchmark raised the firm’s price target on Palo Alto Networks, Inc. (NASDAQ:PANW) to $270 from $200 and maintained a Buy rating on the shares ahead of the company’s fiscal Q3 report due after the market close on Tuesday, June 2. Benchmark said Palo Alto is “highly likely to modestly top” Q3 consensus expectations across next-generation security annual recurring revenue, total revenue, operating income, margin, and free cash flow margin.
Berenberg analyst Rahul Chopra also raised the firm’s price target on Palo Alto Networks, Inc. (NASDAQ:PANW) to $290 from $215 and maintained a Buy rating, saying cybersecurity stocks have rallied strongly since the end of April as market sentiment has “inflected sharply.” Berenberg said Palo Alto “screens as a quality compounder” and is well positioned to capture wallet share from rising AI security budgets and benefit from vendor consolidation.
Palo Alto Networks, Inc. (NASDAQ:PANW) provides cybersecurity solutions across the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan.
9. Intuitive Surgical, Inc. (NASDAQ:ISRG)
On May 27, 2026, Goldman Sachs lowered the firm’s price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) to $558 from $621 and maintained a Buy rating on the shares. Goldman Sachs said MedTech has gone through one of its weakest periods in 15-20 years across performance, valuation, and outlook revisions, with pressure from sector rotation, slower growth, reimbursement and competitive risks, and aging investment narratives.
On May 18, 2026, BofA lowered the firm’s price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) to $520 from $650 and maintained a Buy rating on the shares. BofA said it updated several price targets after hosting 34 medtech companies in Las Vegas, citing “the new reality of medtech valuations” in a year marked by fewer product cycles, ACA and utilization worries, post-war inflation pressure, and “data centers over healthcare.”
Last month, Intuitive Surgical, Inc. (NASDAQ:ISRG) reported Q1 adjusted EPS of $2.50, ahead of the consensus estimate of $2.11. Revenue totaled $2.77B, above the consensus estimate of $2.62B. Worldwide procedures across da Vinci and Ion grew approximately 17% year-over-year, with da Vinci procedures up approximately 16% and Ion procedures up approximately 39%. The company placed 431 da Vinci surgical systems, compared with 367 in the first quarter of 2025, and placed 52 Ion endoluminal systems, compared with 49 last year.
Intuitive Surgical, Inc. (NASDAQ:ISRG) develops, manufactures, and markets products that support minimally invasive care in the United States and internationally.
8. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
On May 22, 2026, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) announced that the European Medicines Agency accepted for review under Accelerated Assessment the Marketing Authorization Application for Otarmeni, an in vivo adeno-associated virus vector-based gene therapy for biallelic OTOF variant-associated hearing loss. Otarmeni, formerly known as DB-OTO, previously received Orphan Designation from the EMA. If approved, Otarmeni would become the first gene therapy for OTOF-related hearing loss in the European Union. The application is supported by data from the pivotal CHORD trial, where 24 participants received a single dose of Otarmeni through intracochlear infusion.
On May 19, 2026, Canaccord analyst John Newman lowered the firm’s price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) to $875 from $1,057 and maintained a Buy rating on the shares. Newman updated the model after the Phase 3 study of fianlimab+cemiplimab versus pembrolizumab failed to hit statistical significance on the primary endpoint of progression-free survival, calling it a surprising and disappointing event.
Wolfe Research analyst Alexandria Hammond also lowered the firm’s price target on Regeneron to $860 from $900 and maintained an Outperform rating. Hammond said the company’s LAG-3 trial missed its primary endpoint, while noting that commercial execution will be important and that second-half 2026 catalysts may be underappreciated.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) discovers, develops, manufactures, and commercializes medicines to treat various diseases worldwide.
7. Garmin Ltd. (NYSE:GRMN)
On May 20, 2026, Tigress Financial raised the firm’s price target on Garmin Ltd. (NYSE:GRMN) to $325 from $320 and maintained a Strong Buy rating on the shares. Tigress said Garmin is positioned for “sustained outperformance,” driven by fitness and automotive opportunities. The firm also cited the company’s new product rollout and “halo-category introductions.”
Toward the end of April, Morgan Stanley lowered the firm’s price target on Garmin Ltd. (NYSE:GRMN) to $249 from $252 and maintained an Equal Weight rating on the shares. Morgan Stanley said Q1 was modestly better than expected, with Fitness remaining a standout, while noting upside risk to estimates this year.
On April 29, 2026, Garmin Ltd. (NYSE:GRMN) reported Q1 adjusted EPS of $2.08, ahead of the consensus estimate of $1.84. Revenue totaled $1.75B, above the consensus estimate of $1.71B. President and CEO Cliff Pemble said Garmin delivered “remarkable financial results” in the opening quarter, supported by its product lineup and diversified business model.
Garmin Ltd. (NYSE:GRMN) designs, develops, manufactures, markets, and distributes GPS-enabled products and navigation, communications, sensor-based, and information products and services worldwide.
6. Sandisk Corporation (NASDAQ:SNDK)
On May 26, 2026, Barclays analyst Tom O’Malley upgraded Sandisk Corporation (NASDAQ:SNDK) to Overweight from Equal Weight with a price target of $2,300, up from $1,200. O’Malley said Memory and Storage is the most attractive vertical below accelerators and expects continued pricing upside as supply-demand imbalance persists through 2027.
On May 19, 2026, Citi raised the firm’s price target on Sandisk Corporation (NASDAQ:SNDK) to $2,025 from $1,300 and maintained a Buy rating on the shares. Citi said Kioxia’s “strong” earnings report pointed to “persistently strong” storage demand and a “highly favorable” pricing environment. The firm remains constructive on SanDisk and believes buybacks can help drive upside to earnings estimates.
Last month, Sandisk Corporation (NASDAQ:SNDK) reported fiscal Q3 EPS of $23.41, ahead of the consensus estimate of $14.66. Revenue totaled $5.95B, above the consensus estimate of $4.73B. CEO David Goeckeler said the quarter marked a “fundamental inflection point” for Sandisk, with its technology leadership supporting a shift toward higher-value end markets led by Datacenter. Goeckeler also cited multi-year customer engagements, a zero-debt balance sheet, strong cash generation, and a recently authorized share repurchase program.
Sandisk Corporation (NASDAQ:SNDK) develops, manufactures, and sells data storage devices and solutions using NAND flash technology internationally.
While we acknowledge the potential of SNDK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNDK and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Debt-Free S&P 500 Stocks to Buy Now.
Disclosure: None. Follow Insider Monkey on Google News.
