In this article, we will discuss the 10 Best Low Risk Stocks to Buy in 2026.
On May 13, Sébastien Page of T. Rowe Price appeared on CNBC’s ‘Squawk Box’ to discuss the latest market trends and argued that current stock market record highs are not sell signals. Though valuations are elevated, corporate earnings are highly resilient; S&P 500 year-over-year earnings growth is running at 27 percent, vastly outperforming the 13 percent projected in March. Consequently, Page’s firm is maintaining a neutral allocation between stocks and bonds, taking profits on the market’s broadening trade, and advising investors to stay diversified while strictly hedging against inflation.
To deploy capital, T. Rowe Price is shifting funds out of international equities and into US large-cap growth stocks. Page emphasized that valuations for US large-cap growth stocks sit below their five-year historical average, and Mag 7 valuations remain well under their historical peaks. The firm views these equities as the optimal vehicle for the AI trade due to exceptional fundamentals, noting that forward 12-month earnings expectations for large-cap growth are at a 25-year high.
To combat severe inflation, Page prioritizes a diversified mix of hedges, including cash, Treasury Inflation-Protected Securities/TIPS, hedged equity strategies to mitigate tail risk, and commodity exposure through energy and metals stocks. Diversification is necessary because standard Treasuries will fail to rally if inflation deteriorates further. Page reported that market swap expectations for one-year-ahead inflation have climbed from 2.3 percent to 3.5 percent, the trailing 12-month CPI printed at 3.8 percent, and annualizing the last two months of CPI data shows an underlying 5 percent inflation rate. Backed by firm research, he warned that the market is underestimating core inflation risks stemming from the largest oil supply shock in history and the second-largest fertilizer shock since Ukraine, prompting the firm to stay long on real-asset equities.
Our Methodology
We used screeners to identify stocks with a beta value between 0 and 1.0, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2025.
Note: All data was sourced on May 20.
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 Best Low Risk Stocks to Buy in 2026
10. Cisco Systems Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 77
Cisco Systems Inc. (NASDAQ:CSCO) is one of the best low risk stocks to buy in 2026. On May 12, Cisco and the United States Golf Association/USGA announced a multiyear extension of their partnership to integrate AI-ready infrastructure into the sport. Cisco will remain the Official Technology Partner, deploying advanced networking, cybersecurity, and observability solutions to streamline year-round operations and marquee events, such as the US Open and US Women’s Open.
The renewed collaboration focuses on utilizing AI to enhance crowd management, monitor venue infrastructure, and identify operational issues before they occur. Additionally, the USGA is developing an AI-powered experience to make official golf rules more accessible to players, which will be protected against runtime threats using Cisco AI Defense.
For the 2026 championships at Riviera Country Club and Shinnecock Hills Golf Club, Cisco Systems Inc. will deploy Wi-Fi 7 access points, Meraki security cameras, and Splunk analytics dashboards to support over 240,000 expected attendees. Beyond technology, the partnership will continue to promote inclusion and career development through initiatives like the USGA Pathways Internship Program and Cisco Networking Academy Dream Teams.
Cisco Systems Inc. is involved in the manufacture, design, and sale of Internet Protocol-based networking products and services associated with the communications and IT industry.
9. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 79
RTX Corporation (NYSE:RTX) is one of the best low risk stocks to buy in 2026. On May 20, RTX’s BBN Technologies, funded by the Air Force Research Laboratory, demonstrated a self-healing communications system called PACE4ACE. The system provides a continuous, secure data flow for combat air support by automatically rerouting network traffic when primary links are jammed, fragmented, or unavailable.
The architecture operates across diverse military and commercial pathways( ranging from satellite links to low-power tactical radios) and dynamically selects the best available channel without operator input. During a recent exercise involving four geographically dispersed sites, the system instantly switched waveforms during jamming events, keeping critical situational awareness applications synchronized.
PACE4ACE features a compact, low Size, Weight, and Power (SWaP) architecture suited for constrained systems, offers plug-and-play integration with common mission systems, and validates the US Air Force’s Agile Combat Employment/ACE concept. Development is being conducted in Cambridge, Massachusetts, with hardware support from the Institute for Human & Machine Cognition and Collins Aerospace.
RTX Corporation is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. It operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.
8. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 82
Philip Morris International Inc. (NYSE:PM) is one of the best low risk stocks to buy in 2026. On May 20, Philip Morris International appointed Massimo Andolina as Group Chief Financial Officer, effective August 1. He succeeds Emmanuel Babeau, who will transition to a Strategic Advisor role until March 31, 2027, to ensure a seamless transition. Group CEO Jacek Olczak praised Andolina’s leadership track record and thanked Babeau for his six years of contributions to the company’s financial growth.
Andolina joined PMI in 2008 and has held multiple senior operational and strategic roles, including Senior Vice President of Global Operations from 2018 to 2023. Most recently, as President of the Europe Region since 2023, he managed the group’s largest and most advanced smoke-free geography, delivering strong top- and bottom-line growth alongside increased financial discipline. He holds a Master of Science in Mechanical and Industrial Engineering and an MBA from IMD.
Outgoing CFO Emmanuel Babeau, who joined Philip Morris International in May 2020, oversaw a notable period of transformation, including the 2022 acquisition of Swedish Match. His tenure helped drive a significant expansion of the company’s smoke-free portfolio, which grew to account for 43% of Philip Morris International Inc.’s (NYSE:PM) net revenues in Q1 2026.
Philip Morris International Inc. operates as a global tobacco company. Its products include cigarettes and smoke-free alternatives. Its smoke-free business also covers wellness and healthcare products, along with consumer accessories such as lighters and matches.
7. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 84
AbbVie Inc. (NYSE:ABBV) is one of the best low risk stocks to buy in 2026. On May 5, AbbVie presented 18 abstracts at the 2026 Digestive Disease Week Annual Meeting, highlighting new real-world and clinical trial data for its IBD therapies, Skyrizi (risankizumab) and Rinvoq (upadacitinib). The findings demonstrate the long-term efficacy, safety, and durability of both treatments for patients with Crohn’s disease and ulcerative colitis.
One-year results from the ASPIRE-CD study showed that Skyrizi provided rapid and sustained relief from Crohn’s disease symptoms, improved patient quality of life, and reduced the need for corticosteroids. Additionally, a 24-month real-world claims analysis revealed that Skyrizi had a significantly lower treatment switch rate (14%) compared to alternative biologics like ustekinumab and vedolizumab.
Real-world data for Rinvoq showed that IBD patients who switched to the drug had lower odds of hospitalization and emergency room visits compared to those who simply escalated their existing biologic doses. Furthermore, clinical data indicated that Rinvoq achieved notable endoscopic improvements through 52 weeks in patients with difficult-to-treat perianal fistulizing Crohn’s disease.
AbbVie Inc. is a research-based pharmaceutical company that develops and sells products to treat chronic diseases in oncology, gastroenterology, rheumatology, dermatology, virology, and various other serious health conditions.
6. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 98
Exxon Mobil Corporation (NYSE:XOM) is one of the best low risk stocks to buy in 2026. On May 1, ExxonMobil announced Q1 2026 GAAP earnings of $4.2 billion ($1.00 per share), down from $7.7 billion in Q1 2025. The decline was heavily driven by $3.9 billion in unfavorable estimated timing effects from unsettled financial derivatives and a $0.7 billion identified item stemming from settled financial hedges disrupted by Middle East supply issues.
Operationally, net production reached 4.6 million oil-equivalent barrels per day, buoyed by a quarterly production record in Guyana of more than 900 thousand gross barrels of oil per day. Additionally, the Golden Pass LNG joint venture achieved its first LNG production from Train 1 at its Sabine Pass Terminal, boosting U.S. export capacity. The company also captured $0.6 billion in structural cost savings during the quarter, bringing cumulative savings since 2019 to $15.6 billion.
Financially, cash flow from operating activities stood at $8.7 billion, or $13.8 billion excluding margin postings. CapEx totaled $6.2 billion, tracking within full-year guidance of $27 billion to $29 billion. Exxon Mobil Corporation distributed $9.2 billion to shareholders.
Exxon Mobil Corporation is one of the world’s largest integrated energy companies, with operations spanning oil and natural gas exploration, production, and refining. The company also manufactures fuels, petrochemicals, lubricants, and advanced plastics, while investing in lower-emission initiatives such as carbon capture and lithium production.
5. The Home Depot Inc. (NYSE:HD)
Number of Hedge Fund Holders: 98
The Home Depot Inc. (NYSE:HD) is one of the best low risk stocks to buy in 2026. On May 19, The Home Depot reported Q1 2026 sales of $41.8 billion, representing a 4.8% increase year-over-year. Comparable sales ticked up by 0.6% globally and 0.4% in the US, with foreign exchange rates providing a 55 basis point benefit. CEO Ted Decker noted that underlying business demand matched expectations despite ongoing consumer uncertainty and housing affordability pressures.
Net earnings for the quarter were $3.3 billion, or $3.30 per diluted share, down slightly from $3.4 billion ($3.45 per share) in the prior year’s Q1. On an adjusted non-GAAP basis, diluted EPS came in at $3.43, compared to $3.56 in Q1 2025.
The company reaffirmed its full-year 2026 guidance, forecasting total sales growth between 2.5% and 4.5% and comparable sales performance ranging from flat to a 2.0% increase. The Home Depot Inc. expects to open approximately 15 new stores, maintain an operating margin of 12.4% to 12.6%, and achieve flat to 4.0% growth in both GAAP and adjusted diluted EPS.
The Home Depot Inc. is a home improvement specialty retailer.
4. Merck & Co. Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 100
Merck & Co. Inc. (NYSE:MRK) is one of the best low risk stocks to buy in 2026. On May 18, Merck announced that its pivotal Phase 3 TroFuse-005 trial evaluating sacituzumab tirumotecan (sac-TMT) met its dual primary endpoints of overall survival/OS and progression-free survival/PFS in patients with advanced or recurrent endometrial cancer. The investigational TROP2-directed antibody-drug conjugate, developed in collaboration with Kelun-Biotech, is the first global Phase 3 trial to show statistically significant improvements in OS and PFS compared to standard chemotherapy in this patient population.
The pre-specified interim analysis demonstrated clinically meaningful efficacy against the physician’s choice of treatment (doxorubicin or paclitaxel) for individuals whose disease progressed following platinum-based chemotherapy and anti-PD-1/L1 immunotherapy. The trial also achieved its key secondary endpoint of objective response rate, maintaining a safety profile consistent with prior sac-TMT studies with no new safety signals.
This milestone represents the first positive Phase 3 data from Merck & Co. Inc.’s (NYSE:MRK) expansive TroFuse clinical development program. The ongoing program encompasses 17 global Phase 3 trials across multiple tumor types (including bladder, breast, cervical, and non-small cell lung cancers) and aims to establish the therapy as a cornerstone treatment in both early and late-stage disease settings.
Merck & Co. Inc. is a healthcare firm that provides health solutions, vaccines, biologic therapies, animal health, and more. It operates in pharmaceuticals, animal health, and other segments.
3. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 104
Johnson & Johnson (NYSE:JNJ) is one of the best low risk stocks to buy in 2026. On May 5, Johnson & Johnson announced positive results from the first clinical study of its investigational OTTAVA Robotic Surgical System. The findings from the prospective, multicenter FORTE study evaluating the system in Roux-en-Y gastric bypass procedures were presented at the 2026 American Society for Metabolic and Bariatric Surgery/ASMBS Annual Meeting.
In the 30-patient cohort, the study met its primary safety and performance endpoints through 30 days post-procedure, with investigators completing all surgeries robotically without converting to a non-robotic approach. The trial also showed the viability of the system’s novel architecture within space-constrained operating rooms. The system was successfully used across six hospitals, including multiple rooms historically considered too small or challenging for standard robotic setups.
Backed by these clinical and preclinical data, Johnson & Johnson submitted an application to the US FDA for De Novo classification. The submission targets a general surgery indication covering multiple procedures within the upper abdomen, including gastric bypass, gastric sleeve, small bowel resection, and hiatal hernia repair.
Johnson & Johnson is a global healthcare company that researches, develops, and manufactures pharmaceuticals and MedTech products. It focuses on treating complex diseases, advancing surgical care, and improving patient outcomes in areas such as cancer, immunology, and orthopedics.
2. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 115
Alibaba Group Holding Limited (NYSE:BABA) is one of the best low risk stocks to buy in 2026. On May 20, Alibaba Group unveiled its new Zhenwu M890 AI chip, developed by its T-Head subsidiary to provide a domestic alternative to Nvidia processors amid tightening US export curbs. The chip offers three times the performance of its predecessor and is purpose-built to handle the heavy memory demands of autonomous AI agents.
Alibaba also introduced the Panjiu AL128 server system, which integrates 128 of the new accelerators into a single rack. The system is immediately available to Chinese enterprise clients through Alibaba Cloud’s Bailian platform. T-Head has shipped over 560,000 total Zhenwu units to date across industries like automotive and finance.
To complement the hardware, Alibaba Group Holding Limited debuted its Qwen 3.7-Max large language model, optimized for complex coding and agent tasks. Supported by a 380 billion yuan (~$53 billion) infrastructure investment, the company also detailed a multi-year roadmap featuring the successor V900 chip in 2027 and the J900 chip in 2028.
Alibaba Group Holding Limited operates as a technology infrastructure and marketing solutions provider. It operates both within the People’s Republic of China and internationally.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 137
Eli Lilly and Company (NYSE:LLY) is one of the best low risk stocks to buy in 2026. On May 21, Lilly’s Phase 3 TRIUMPH-1 trial evaluated retatrutide, an investigational once-weekly triple hormone receptor agonist (GIP/GLP-1/glucagon). The 80-week study involved 2,339 adults with obesity or overweight and at least one comorbidity, excluding diabetes. All doses met primary and secondary endpoints, showing significant weight loss and improvements in cardiometabolic markers like cholesterol and blood pressure.
At 80 weeks, participants on the 12 mg dose lost an average of 70.3 lbs (28.3%), with 45.3% losing 30% or more. A 104-week extension for those with a BMI ≥ 35 showed the 12 mg dose reached an average loss of 85.0 lbs (30.3%). The 9 mg and 4 mg doses yielded average 80-week weight losses of 25.9% and 19.0%, respectively.
Adverse events were consistent with incretin therapies, primarily causing nausea, diarrhea, constipation, and vomiting. Mild-to-moderate dysesthesia and urinary tract infections were also reported. Discontinuation rates due to side effects were 4.1% for 4 mg, 6.9% for 9 mg, and 11.3% for 12 mg, compared to 4.9% for the placebo.
Eli Lilly and Company is a healthcare company that develops human pharmaceutical products, including cardiometabolic health, oncology, and immunology products.
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