In this article, we will take a look at the 10 Best Low-Risk Investments in May 2026.
On April 22, Tom Lee, Managing Partner and Head of Research at Fundstrat, spoke on CNBC Power Lunch and noted a favorable macro environment for stocks in 2026. According to Lee, the three main concerns, namely geopolitical tensions in the Middle East, friction in private credit markets, and uncertainty over Federal Reserve leadership, have begun to subside, with the economy exhibiting resilience and earnings forecasts heading upward.
This stronger background is supporting a more optimistic outlook for markets, with Lee projecting that the S&P 500 would move over 7,700 as the potential for upside improves. A major reason for Lee’s optimism is the growing impact of AI, which is beginning to offer measurable productivity and corporate growth.
At the same time, decreasing geopolitical risks, especially in the oil sector, could cut risk premiums if tensions subside, offering an extra tailwind for stocks. Lee did, however, offer two opposing scenarios: a prolonged conflict that might drive oil prices much higher and jeopardize global development, or a faster resolution that would relieve long-standing stress on energy markets and allow stocks to rise.
Our Methodology
We used several criteria to shortlist stocks for December 2025, including a beta of less than 0.5, strong fundamentals, positive analyst ratings, and optimistic price targets. We next narrowed our choices by excluding midcap or small-cap companies, as well as stocks with inconsistent dividend yields.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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. GSK plc (NYSE:GSK)
GSK plc (NYSE:GSK) ranks among the best low-risk investments in May 2026. GSK plc (NYSE:GSK) stated on April 15 that it had completed the acquisition of 35Pharma Inc., a private clinical-stage biopharmaceutical firm based in Canada. The $950 million purchase gives GSK plc (NYSE:GSK) complete control of 35Pharma and its pipeline, which includes HS235, a chemical being developed for the treatment of pulmonary hypertension.
The statement claims that HS235 is designed for improved selectivity, potentially reducing the risk of bleeding and other side effects related to existing treatments for pulmonary arterial hypertension. Early clinical trials showed metabolic advantages such as fat-selective weight reduction, lean mass retention, and enhanced insulin sensitivity.
In a separate development, GSK plc (NYSE:GSK) announced that its prototype targeted cancer medicine Mo-rez had breakthrough potential after preliminary data indicated that it helped reduce tumors in patients with more advanced, difficult-to-treat cancers.
The number of patients who obtained a substantial decrease in tumor size, measured as at least a 30% shrinking, was the first indicator of success. In platinum-resistant ovarian cancer, 62% of patients reached this threshold, compared to 67% in endometrial cancer.
GSK plc (NYSE:GSK) is a UK-based global biopharmaceutical company that researches, develops, and sells medicines and vaccines for infectious diseases, HIV, respiratory conditions, cancer, and immune-related disorders.
9. Shell plc (NYSE:SHEL)
Shell plc (NYSE:SHEL) ranks among the best low-risk investments in May 2026. On April 10, TD Cowen cut its price target for Shell plc (NYSE:SHEL) to $110 from $112 while retaining a Buy rating on the company’s shares. TD Cowen anticipates Shell plc (NYSE:SHEL) to reveal a $5.5 billion buyback in the second quarter of 2026, despite the probable reversal of working capital headwinds. According to the firm’s expectations, Shell plc (NYSE:SHEL) would repurchase $20 billion in fiscal year 2026, increasing its return yield to 14%.
The firm issued a minor adjustment to its rest-of-year projections, with somewhat higher Integrated Gas and better Renewables and Energy Solutions offsetting lower Upstream results on reduced oil costs and increased corporate expenses. Given its leading-peer distribution and second-best free cash flow yield in the sector, Shell plc (NYSE:SHEL) remains in a strong position for the foreseeable future, according to TD Cowen.
Meanwhile, Piper Sandler reaffirmed an Overweight rating and a $106 price target for Shell plc (NYSE:SHEL) following the company’s first-quarter trading update. The firm raised its first-quarter 2026 earnings expectations to $2.36 per share and $17.1 billion in EBITDA, up from previous estimates of $2.17 per share and $16.1 billion.
Shell plc (NYSE:SHEL) is an integrated energy company with operations spanning exploration, production, refining, marketing, and chemical manufacturing, alongside growing investments in biofuels and hydrogen.
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