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.
8. Unilever PLC (NYSE:UL)
Unilever PLC (NYSE:UL) ranks among the best low-risk investments in May 2026. On April 14, BofA Securities began coverage of Unilever PLC, with a Buy rating and a $72 price target for the company’s shares. Analyst Nicolas Ceron noted that UL’s stock had plummeted by about 20% since the conflict in Iran began. Despite an identical earnings per share CAGR, the stock is trading at a 2026 expected price-to-earnings ratio of 15.4x, reflecting an 8% discount relative to European Food HPC.
The firm emphasized the company’s arrangement with McCormick to separate its Foods division to become a pure-play HPC (Home & Personal Care) company, as well as its strong, “unrivaled” position within the Indian market, which is projected to drive 25% of its total performance. Additionally, BofA pointed out that the 20% valuation gap to U.S. rivals might be closed if activist investor Trian Partners pursues a U.S. listing, as it did with Ferguson.
Unilever PLC is a British multinational fast-moving consumer goods corporation formed through the combination of British soap manufacturer Lever Brothers and Dutch margarine producer Margarine Unie.
7. Tyson Foods Inc. (NYSE:TSN)
Tyson Foods Inc. (NYSE:TSN) ranks among the best low-risk investments in May 2026. On April 6, Piper Sandler boosted Tyson Foods Inc. to Overweight from Neutral and hiked its price objective to $75 from $61. According to the firm, Tyson’s earnings in the latter half of 2026 and the first half of 2027 could be boosted by market disruptions in the beef and chicken segments.
Piper Sandler observed Tyson’s solid top-line momentum, with its portfolio profiting from consumer changes toward higher levels of protein. Similarly, the firm stated that the company appeared to be well-insulated from GLP-1 concerns.
Piper Sandler retained its earnings expectations until more information about when and how any potential upside will be realized became clear.
Meanwhile, Mizuho began coverage of Tyson Foods Inc. with an Outperform rating and a price target of $72. According to Mizuho, progress in prepared foods indicates Tyson is close to realizing the top- and bottom-line potential from value-added food that has been missed in the model. In fiscal year 2027, the firm anticipates strong risk/reward for shares, bolstered by strong industry supply/demand and internal productivity.
Tyson Foods Inc. is a multinational food company that produces and markets beef, pork, and poultry products. Its offerings range from ready-to-eat meals and raw meat cuts to well-known branded products like Jimmy Dean sausages and Tyson chicken nuggets.
6. Mondelez International, Inc. (NASDAQ:MDLZ)
Mondelez International, Inc. (NASDAQ:MDLZ) ranks among the best low-risk investments in May 2026. On April 13, BTIG began coverage of Mondelez International, Inc. with a Buy rating and a $70 price target. The firm’s valuation indicates an enterprise value-to-EBITDA ratio of roughly 15x, which is broadly consistent with its historical average, implying that the shares are reasonably priced despite its defensive characteristics.
Mondelez’s position in high-demand snack categories, especially in emerging economies, provides a long-term engine for growth, enhancing the company’s low-risk profile.
BTIG analysts anticipate higher earnings in 2027 due to lower cocoa prices, which may encourage margin growth. In addition, improved free cash flow, driven by higher margins and working capital efficiencies, may allow for more share repurchases or strategic acquisitions.
Similarly, Bank of America named Mondelez International, Inc. one of its top consumer staples favorites, keeping earnings projections of $0.60 per share for the first quarter and $3.02 for fiscal 2026, vs. consensus of $0.61 and $3.03, respectively.
Mondelez International, Inc., often known as Mondelēz International, is a Chicago-based international company that specializes in confectionery, food, beverages, and snacks.
5. Altria Group, Inc. (NYSE:MO)
Altria Group, Inc. (NYSE:MO) ranks among the best low-risk investments in May 2026. Following investor meetings with company management, Stifel reaffirmed its Buy rating and $68 price target on Altria Group, Inc. on March 31. The firm’s earnings growth forecast is supported by a moderate decline in the tobacco market and Altria’s ability to control revenue growth.
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Altria Group, Inc. is actively rolling out its newly authorized on! PLUS nicotine pouches on a national level. In the short run, the company plans to leverage promotional pricing to drive trial in the rapidly growing market.
In a similar vein, Jefferies named Altria Group, Inc. one of its top tobacco stocks on April 1. The company’s on! brand saw volume reductions in March while maintaining strong pricing. Volumes and value declined 15.5% and 5.2%, respectively, compared with 17.6% reductions in February and a 1.2% value increase.
The price per unit increased to $4.60, well above the 52-week average of $3.00, which Jefferies believes could be an indicator of on! Plus’s premium pricing strategy, which seems more in line with Velo and ZYN.
Altria Group, Inc. is a prominent American company that produces and markets tobacco, cigarettes, and related products globally. The firm has also ventured into next-generation nicotine products, such as oral nicotine pouches and electronic vaping devices.
4. The Progressive Corporation (NYSE:PGR)
The Progressive Corporation (NYSE:PGR) ranks among the best low-risk investments in May 2026. On April 15, BofA Securities boosted The Progressive Corporation’s price target to $312 from $298, while keeping a Buy rating on the company’s stock. The firm’s March quarter earnings were $1.55 per share, lower than BofA’s prediction of $1.62 but consistent with industry expectations. The in-period loss ratio exceeded the firm’s projection, although net prior-period development was greater than predicted.
Progressive’s expense ratio fell to 20.0% in March from 20.6%-20.9% in previous months, indicating increased cost efficiency, possibly due to reduced advertising expenditures or a more stable workforce. This operational discipline strengthens the company’s adaptability to changing market conditions.
Based on the March data, BofA reduced its fiscal 2026 full-year forecast for The Progressive Corporation, though it increased its out-year projections by 10 cents because of a slightly higher estimate of stock buybacks at a marginally lower price. Using an underwriting-margin-normalized 92% combined ratio, the firm’s 2028 prediction of $19.40 per share would change to $16.81 per share.
The Progressive Corporation is an insurance holding company that provides residential property insurance, personal and commercial auto insurance, and other specialty property-casualty insurance and related services.
3. Pfizer Inc. (NYSE:PFE)
Pfizer Inc. (NYSE:PFE) ranks among the best low-risk investments in May 2026. On April 13, Guggenheim reaffirmed a Buy rating and a $36 price target for Pfizer Inc. as the firm revised its financial forecast ahead of the company’s Q1 earnings announcement on May 5.
The firm anticipates first-quarter revenues of around $13.8 billion, compared to average predictions of $13.9 billion, and earnings per share of $0.76 vs $0.72. Full-year 2026 revenue and EPS expectations come in at $61.3 billion and $3, respectively, contrary to the consensus of $61.2 billion and $2.96.
The key adjustment in Guggenheim’s forecast is a substantial upward adjustment to Eliquis, which the firm thinks has better IRA net price dynamics than the market projected.
Guggenheim anticipates investor attention to focus on impending pipeline readouts, which the firm thinks will help drive expansion for the company as it deals with the 2026-2028 era of major patent expirations.
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the US and internationally. The company offers medicines and vaccines in various therapeutic areas.
2. PepsiCo, Inc. (NASDAQ:PEP)
PepsiCo, Inc. (NASDAQ:PEP) ranks among the best low-risk investments in May 2026. PepsiCo, Inc. stands out as a stable, low-risk investment option thanks to its steady earnings performance and defensive business model. Following solid first-quarter earnings, UBS confirmed its Buy rating and set a price target of $186 for the company’s shares on April 17.
The company reported earnings per share of $1.61, above expectations of $1.55, and revenue of $19.44 billion, exceeding projections of $18.94 billion. This increase was driven by strong organic revenue growth and enhanced cost control, which served to offset pressure on gross margins.
Similarly, RBC Capital reiterated its Sector Perform rating and $163 price target for PepsiCo, Inc.. The firm stated that the company delivered strong performance globally, with a volume spike in its PFNA division.
PepsiCo, Inc. is relatively well shielded from cost pressures for the rest of 2026 because of hedging initiatives, allowing the company to uphold its bottom-line forecast. However, the firm stated that the boost in PFNA will need to be maintained in a more challenging macroeconomic scenario.
One of the most well-known names in the world, PepsiCo, Inc. is an American multinational company involved in the food, snack, and beverage sectors.
1. Verizon Communications Inc. (NYSE:VZ)
Verizon Communications Inc. (NYSE:VZ) ranks among the best low-risk investments in May 2026. On March 31, Barclays analysts stated that Verizon Communications Inc. is facing higher performance demands due to recent competitor moves and stock resets, with Q1 results serving as a crucial indicator of strategic implementation.
The company is aiming for 750,000 to 1 million postpaid phone net additions, indicating a push for significant year-over-year growth. The first-quarter results are likely to be a major signal of Verizon’s ability to successfully execute its plan in an increasingly competitive environment.
In broadband, Verizon Communications Inc. is expected to profit from modifications linked to its acquisition of Frontier Communications, with promotional activities anticipated to drive subscriber growth beyond the 85,000 to 100,000 increase Frontier has typically achieved in Q1.
While the first quarter is traditionally a slower season, analysts anticipate stronger subscriber growth than last year and a successful fourth quarter of 2025. There may still be some pressure, especially with regard to churn, but Verizon’s recurring revenue model and infrastructure-driven business make it a safe, steady choice for cautious investors.
Verizon Communications Inc. is a leading provider of technology, entertainment, and communications services worldwide.
