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. (NASDAQ:CSCO) 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. (NASDAQ:CSCO) 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 (NYSE:RTX) 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.
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