In this article, we will take a look at some of the best low-risk stocks to buy now.
If we ask, what’s the one factor you consider when deciding which company to invest in? Your answer will probably be “risk”. In a market defined by uncertainty and rapid fluctuations, investors are eyeing stocks with the lowest risk factors.
To phrase it formally, low-risk stocks are of companies that have strong fundamentals, growth potential, and resilient cash flow. With that being said, most stocks today not only offer stability but also stand among the biggest providers of shareholder value.
One may ask: how to separate low-risk stocks from high-risk ones? While the answer seems simple, it’s actually much more complicated. The most commonly used measure is beta, which determines the stock’s volatility in contrast to the overall market. To put it straight, it tells you how sensitive the stock is to any movement in the market.
As cited by Kent Hargis and Chris Marx in “The Paradox of Low-Risk Stocks: Gaining More by Losing Less”,
“Since 1973, the least volatile quintile of global stocks delivered returns that were one-third higher than the market, with 20% less volatility.”
Pixabay/Public Domain
Our Methodology
In selecting the 10 best low-risk stocks to buy now, we have filtered for stocks with a beta of under 1, a P/E ratio of under 25, and a debt-to-equity ratio of under 0.6/equity using the Finviz stock screener. These are then ranked in ascending order according to their upside potential, calculated using one-year price targets by Yahoo Finance.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Cal-Maine Foods, Inc. (NASDAQ:CALM)
Upside Potential as of September 25, 2025: 9.75%
Financiere des Professionnels Fonds d’investissement inc. acquired a new stake in the shares of Cal-Maine Foods, Inc. (NASDAQ:CALM) during the second quarter. According to the SEC, the Canadian financial services firm purchased 3,579 shares of the company’s stock, with an investment of approximately $357,000.
Some foods fade away, but eggs? They rule every breakfast in almost every household. With Cal-Maine Foods, Inc. (NASDAQ:CALM) being the largest producer and provider of eggs, boasting a 17% market share, there’s little to be uncertain about the company.
The strategic initiatives by Cal-Maine Foods, Inc. (NASDAQ:CALM) are quite commendable. The company is expanding into the specialty eggs market, a market that includes cage-free, organic, and pasture-raised egg products. Despite high production costs, the company can enjoy higher margins through these premium offerings, as demand for them is witnessing a steady rise, particularly from major retailers like Walmart and Costco.
Cal-Maine Foods, Inc. (NASDAQ:CALM), headquartered in Ridgeland, Mississippi, specializes in shell eggs, egg products, and prepared foods. Founded in 1957, the company operates through various brands, such as Land’s Best, Sunny Meadow, Farmhouse Eggs, and Sunups.
9. Futu Holdings Limited (NASDAQ:FUTU)
Upside Potential as of September 25, 2025: 14.65%
In the second quarter, Covea Finance expanded its holdings in the shares of Futu Holdings Limited (NASDAQ:FUTU) by 52.3%. According to a recent disclosure with the SEC, the firm now owns 9,900 shares of the company’s stock after acquiring an additional 3,400 shares. This translates to an ownership of about 0.07% and an investment of approximately $4,821,000.
The company’s financials tell quite a compelling story. Futu Holdings Limited (NASDAQ:FUTU) delivered one- and five-year returns of 144.88% and 520.10%, respectively, while surpassing the market’s averages of 15.06% and 82.75%, respectively. Looking at the bigger picture, the company has a strong business model that is a perfect blend of trading, wealth management, and social investing.
In its latest earnings call, management highlighted its focus on overseas markets, particularly the U.S. As stated by the Chief Financial Officer of Futu Holdings Limited (NASDAQ:FUTU), Yu Chen,
“Our collaborations with Mets in the second quarter bear a very strong fruit in terms of the new client acquisition in the U.S. and also the brand implication further expands to other overseas markets as well.”
Futu Holdings Limited (NASDAQ:FUTU), headquartered in Admiralty, Hong Kong, is a company offering digitized securities brokerage and wealth management product distribution services. Founded in 2007, the company is dedicated to making investing easier.
8. DHT Holdings, Inc. (NYSE:DHT)
Upside Potential as of September 25, 2025: 16.68%
According to a recent disclosure with the SEC, Inspire Investing LLC purchased a new stake in DHT Holdings, Inc. (NYSE:DHT) by acquiring 69,444 shares during the first quarter. The financial firm’s investment in the company now amounts to approximately $729,000.
If we consider financial performance, the company’s year-to-date and 5-year returns surpassed the market’s average by 26.43% and 136.75%, respectively. DHT Holdings, Inc. (NYSE:DHT) demonstrates resilience through disciplined fleet management, which protects its profitability, liquidity, and the sustainability of its dividends.
The company’s financials are highly praised by all. DHT Holdings, Inc. (NYSE:DHT) maintains strong cash flow and debt management to support sustainability and dividend longevity. Management believes that the market’s dynamics is increasingly becoming a favorable supply story, driven by a rapidly aging fleet, a decent pipeline of newbuilds, and ongoing sanctions.
DHT Holdings, Inc. (NYSE:DHT), headquartered in Hamilton, Bermuda, is a company specializing in crude oil tankers mainly in Monaco, Singapore, Norway, and India. Incorporated in 2005, the company is committed to leading the global crude oil transportation market.
7. Arch Capital Group Ltd. (NASDAQ:ACGL)
Upside Potential as of September 25, 2025: 20.92%
During the second quarter, High Ground Investment Management LLP expanded its holdings in the shares of Arch Capital Group Ltd. (NASDAQ:ACGL) by 24.9%, according to the disclosure with the SEC. Following the acquisition of 329,968 shares, the institutional advisor now owns 1,656,517 shares of the company’s stock, valued at approximately $150,826,000.
Although the shares of Arch Capital Group Ltd. (NASDAQ:ACGL) have performed somewhat poorly over the past year, what lies ahead looks quite different. In its latest earnings call, management highlighted its focus on managing growth in selective areas where pricing is strong, particularly in Florida.
The company’s business model is quite interesting. Arch Capital Group Ltd. (NASDAQ:ACGL) spans diverse niches within both insurance and reinsurance, positioning it well to shift capital wherever the returns are higher. Rather than chasing growth, the company is maximizing profitability, which reflects its emphasis on shareholder value.
Arch Capital Group Ltd. (NASDAQ:ACGL), headquartered in Pembroke, Bermuda, is a company that offers insurance, reinsurance, and mortgage insurance products. Founded in 1995, the company is dedicated to sustainable financial growth.
6. JD.com, Inc. (NASDAQ:JD)
Upside Potential as of September 25, 2025: 26.67%
According to a recent disclosure with the SEC, Norden Group LLC purchased a new stake in the shares of JD.com, Inc. (NASDAQ:JD). Following the acquisition of 140,602 shares, the advisory firm’s investment in the company is now approximately $4,589,000.
Analysts believe that most Chinese stocks, including JD.com, Inc. (NASDAQ:JD), are deeply undervalued. With the U.S.-China relationship gradually patching up, the company’s stable fundamentals and growth potential will position it strongly in the market. To say the least, this e-commerce giant is highly profitable, with strong free cash flow and huge operating profit growth in its primary business, JD Retail.
In the second quarter, the company witnessed a recovery in FCF, and as time passes, stock buybacks can return significantly to shareholders. JD.com, Inc. (NASDAQ:JD), a powerhouse in its own right, is among the successful Chinese online retail names.
JD.com, Inc. (NASDAQ:JD), headquartered in Beijing, the People’s Republic of China, is a company that engages in supply chain-based technology and services. With three segments: JD Retail, JD Logistics, and New Businesses, the company is committed to improving lives through technology.
5. Yum China Holdings, Inc. (NYSE:YUMC)
Upside Potential as of September 25, 2025: 36.05%
Yum China Holdings, Inc. (NYSE:YUMC) has updated its board structure, outlining the roles and responsibilities of each member. The composition of the board now includes executive, non-executive, and independent directors, with each committee specializing in not only audit and compensation, but also food safety and sustainability.
Highlighting the company’s strong corporate governance, this announcement means that Yum China Holdings, Inc. (NYSE:YUMC) can now enhance operational efficiency and stakeholder confidence more effectively. With that being said, Mr. Zhe (David) Wei has been appointed as a member of the Food Safety and Sustainability Committee, effective September 19, 2025. This further underscores the company’s current efforts to enhance its business structure and focus on stability.
These changes will help Yum China Holdings, Inc. (NYSE:YUMC) to achieve the impossible. As stated by CFO Adrian Ding during the earnings call,
“We anticipate a ramp-up in net new store openings in the second half of this year, with more gross openings and fewer store closures. We have a solid pipeline and remain confident in achieving our target of 1,600 to 1,800 net new stores in 2025.”
Yum China Holdings, Inc. (NYSE:YUMC), founded in 1987, is a Chinese company running a network of restaurants. This innovative pioneer in the restaurant market is committed to making every life taste beautiful.
4. FinVolution Group (NYSE:FINV)
Upside Potential as of September 25, 2025: 49.34%
According to a recent disclosure with the SEC, Canada Pension Plan Investment Board acquired a new stake in FinVolution Group (NYSE:FINV) during the first quarter. The firm now owns 407,797 shares of the company’s stock, which translates to an investment of approximately $3,927,000 and an ownership of nearly 0.16%.
If there’s one company that’s stealing the spotlight on the global front, it’s definitely FinVolution Group (NYSE:FINV). The company’s international proceeds are expanding at 74% and the number of international customers is already at 96% YoY. It doesn’t end there. The fintech gem is entering Pakistan, a fifth-most populous market defined by a large unbanked youth population.
Despite some unlikely regulatory and political risks, FinVolution Group (NYSE:FINV) is growing, and we can expect it to continue this growth momentum in the years ahead. Even considering the previous statistics, the company has delivered a 5-year return that surpasses the market’s return by a compelling 395.50%. This, along with the strong market presence, speaks volumes about the company.
FinVolution Group (NYSE:FINV) is a Chinese investment holding company focusing its operations on the online consumer finance industry. Incorporated in 2007, the company is dedicated to improving finance through advanced technology.
3. Escalade, Incorporated (NASDAQ:ESCA)
Upside Potential as of September 25, 2025: 60.64%
On September 15, 2025, the Director of Escalade, Incorporated (NASDAQ:ESCA), Richard Fenton Baalmann, Jr., offloaded 4,800 shares of the company’s stock at an average price of $12.29. This $58,992.00 transaction leaves the director’s ownership in the company to 110,394 shares, valued at approximately $1,356,742.26.
As outlined in the recent earnings, Escalade, Incorporated (NASDAQ:ESCA) is one of the companies that have performed well in this tariff era. Although net sales dipped nearly 13% year-over-year, the company’s gross margin expanded by approximately 60 basis points due to its facility consolidations and cost rationalization initiatives.
From basketball and safety to archery and recreational games, Escalade, Incorporated (NASDAQ:ESCA) maintains a strong presence in the market. The company’s future looks equally promising, thanks to its new products, particularly the ONIX Hype and Hype Pro pickleball paddles and the STIGA Paragon table tennis table, as well as its sustained focus on market dynamics.
Escalade, Incorporated (NASDAQ:ESCA), founded in 1919, is a company specializing in sporting goods across North America, Europe, and the globe. This Indiana-based giant delivers to retailers, specialty dealers, and merchants, among others.
2. Qfin Holdings, Inc. (NASDAQ:QFIN)
Upside Potential as of September 25, 2025: 61.11%
In the second quarter, Exchange Traded Concepts LLC acquired a new stake in Qfin Holdings, Inc. (NASDAQ:QFIN) following the purchase of 41,663 shares. According to the recent filing with the SEC, the firm’s investment in the company is now about $1,807,000.
Although there are regulatory and macroeconomic risks, Qfin Holdings, Inc. (NASDAQ:QFIN) is considered a highly profitable fintech company set to benefit from robust AI- and data-driven initiatives. Every successful company owes a lot to its management, and here the focus is on multiple growth plans and sustainable shareholder returns.
The financials of Qfin Holdings, Inc. (NASDAQ:QFIN) speak volumes, with three- and five-year returns delivered by the company outperforming the market’s averages by 120.20% and 205.03%, respectively. With that being said, the numbers are expected only to grow given the company’s exceptional capital returns through buybacks and dividends, along with an industry-leading level of profitability.
Qfin Holdings, Inc. (NASDAQ:QFIN), founded in 2016, is a company that provides an AI-driven credit-tech platform through the Qifu Jietiao brand. With a commitment to contributing to global digital governance, this Chinese giant serves many micro-to-small enterprises, institutions, and consumers.
1. VAALCO Energy, Inc. (NYSE:EGY)
Upside Potential as of September 25, 2025: 135.85%
During the first quarter, Goldman Sachs Group Inc. increased its position in VAALCO Energy, Inc. (NYSE:EGY) by acquiring 182,489 shares of the company’s stock. According to the recent filing with the SEC, the institutional advisor now owns about 0.71% of the company, which means 737,435 shares worth $2,773,000.
For many, VAALCO Energy, Inc. (NYSE:EGY) is another comparatively small yet growth-oriented stock. Despite the production hitting rock bottom in the second quarter, production is set to restart as the FPSO returns from the shipyard. That being said, management is not solely relying on FPSO refurbishment; rather, progress is being actively made to initiate an offshore drilling campaign that is anticipated to significantly contribute to existing returns.
For now, we can see that VAALCO Energy, Inc. (NYSE:EGY) is in excellent financial shape, and as soon as production expands, the company is expected to double production by 2027. Through recent collaborations and late-stage projects in Africa, the company is likely to reward its investors heavily.
VAALCO Energy, Inc. (NYSE:EGY) is a Texas-based independent energy company specializing in crude oil, natural gas, and natural gas liquids. Founded in 1985, the company is dedicated to providing reliable energy solutions.
While we acknowledge the potential of EGY 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 EGY and that has 100x upside potential, check out our report about this cheapest AI stock.
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