In this article, we will take a look at the 10 Best Low Volatility Investments in December 2025.
As the market finishes off a dull November, investors will be looking for signs of the broader economy’s health in the weeks to come to help keep the US equity market steady. Tech stocks bore the brunt of November’s downturn, with the sector’s 2.15% monthly slump driving down the overall market performance. The drop comes as investors examine valuations in artificial intelligence and semiconductor firms, which fueled much of 2024’s gains.
However, December has the potential to be a key month for the market. On December 10, the US Federal Reserve will hold its final two-day meeting of the year, during which the federal funds rate (overnight interest rate) is largely predicted to be reduced. A quarter percentage point drop by the Fed in December would be the third in a row following its September and October meetings. Traders had also begun modifying their expectations for lower rates since New York Fed President John Williams stated recently that there was opportunity for “a further adjustment in the near term to the target range for the federal funds rate.”
Considering the economy stands at a crossroads, with persistent inflation and growing unemployment, the central bank’s decision, along with the following remarks from chairman Jerome Powell, may impact the stock market’s trajectory as we approach 2026.
Our Methodology
We used a number of criteria to shortlist stocks for December 2025, including a beta value of less than 0.5, excellent fundamentals, positive analyst ratings, and optimistic price projections. We next narrowed our choices by excluding midcap or lower-cap companies, as well as stocks with inconsistent dividend yields. The remaining equities were examined using Insider Monkey’s database of premier hedge funds tracked through the third quarter of 2025.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. AstraZeneca PLC (NASDAQ:AZN)
Beta Value: 0.32
Dividend Yield: 1.69%
Number of Hedge Fund Holders: 54
AstraZeneca PLC (NASDAQ:AZN) ranks among the Best Low Volatility Investments in December 2025. BofA Securities maintained its Buy rating on AstraZeneca PLC (NASDAQ:AZN) and increased its price target to $108.50 from $91.70 on November 25. AstraZeneca PLC (NASDAQ:AZN) was listed on the company’s Europe 1 list of top ideas and ranked as one of its 25 stocks for 2026.
According to BofA, the upcoming 12 months will see many critical clinical trial readouts with strong sales potential, including AVANZAR in NSCLC and SERENA-4 in all-comer mBC. The firm stated that, regardless of investor reservations regarding owning AstraZeneca PLC (NASDAQ:AZN) ahead of the AVANZAR readout, current consensus represents restricted peak revenue estimates, resulting in what the firm considers attractive upside potential.
Additionally, on November 21, AstraZeneca PLC (NASDAQ:AZN) announced a major $2 billion commitment to expand its manufacturing facilities in Maryland. This move will significantly boost production capacity at the Frederick biologics factory and build a new clinical manufacturing facility in Gaithersburg, creating 2,600 jobs across both locations.
AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company that explores, develops, manufactures, and commercializes prescription medicines. It supplies its products and services to specialty and primary care physicians.
9. JD.com, Inc. (NASDAQ:JD)
Beta Value: 0.42
Dividend Yield: 3.33%
Number of Hedge Fund Holders: 55
JD.com, Inc. (NASDAQ:JD) ranks among the Best Low Volatility Investments in December 2025. On November 24, Susquehanna retained its Neutral rating on JD.com, Inc. (NASDAQ:JD) with a price target of $32, following the company’s third-quarter earnings release. The Chinese e-commerce giant announced quarterly revenue that surpassed market estimates. That said, profitability came up short as the company continues to invest substantially in new economic ventures, especially in its food delivery service.
JD.com, Inc. (NASDAQ:JD) announced a 15% year-on-year increase in total revenues for Q3, sustaining its double-digit growth rate. The general merchandise sector achieved a 19% year-on-year revenue rise, with supermarket, fashion, and health segments sustaining double-digit growth.
The JD Food Delivery business also exhibited excellent progress with a double-digit quarter-on-quarter GMV growth alongside decreased operational losses.
Susquehanna observed that these ongoing investments are projected to continue affecting JD.com’s profit margins, even as the company voices confidence regarding their long-term potential.
JD.com, Inc. (NASDAQ:JD) is one of China’s largest e-commerce and technology companies. It operates an extensive online retail platform supported by advanced logistics, supply chain management, and cloud services.
8. The Allstate Corporation (NYSE:ALL)
Beta Value: 0.24
Dividend Yield: 1.88%
Number of Hedge Fund Holders: 60
The Allstate Corporation (NYSE:ALL) ranks among the Best Low Volatility Investments in December 2025. On November 26, Roth/MKM increased its price target for The Allstate Corporation (NYSE:ALL) from $230 to $240, while continuing to rate the insurance company’s shares as a Buy. According to the firm, Allstate’s impressive third quarter 2025 performance, which greatly exceeded expert forecasts, is what prompted the rise.
The insurer’s adjusted net income per share came in sat $11.17, which surpassed the $7.52 consensus projection. Furthermore, Allstate’s revenue exceeded the estimated $15.69 billion to hit the $17.3 billion mark. Additionally, The Allstate Corporation (NYSE:ALL) demonstrated growth in its customer base, as evidenced by the 1.3% increase in personal auto policies-in-force during the quarter, a statistic that had already been disclosed.
Roth/MKM credited the The Allstate Corporation (NYSE:ALL)’s earnings beat mostly to stronger underlying performance and positive loss reserve growth in personal car injury and physical damage coverages.
The Allstate Corporation (NYSE:ALL) offers a variety of insurance services and products, such as protection, health, and property and casualty insurance. In addition, the company offers consumer protection plans, roadside assistance, and analytics solutions.
7. Amgen Inc. (NASDAQ:AMGN)
Beta Value: 0.44
Dividend Yield: 2.76%
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN) ranks among the Best Low Volatility Investments in December 2025. Goldman Sachs reaffirmed its $400 price target and Buy rating for Amgen Inc. (NASDAQ:AMGN) on November 25 ahead of two Phase 2 updates for the company’s obesity medication MariTide, which are anticipated by year’s end. Following previously disclosed induction results from Part 1, the firm anticipates that Amgen will provide maintenance data in obesity from Part 2 of its Phase 2 trial.
Goldman Sachs looked for long-term weight loss with reduced or occasional dosage and little gastrointestinal side effects in the obesity maintenance data. According to the firm, patients were only qualified for the maintenance phase if they experienced a weight loss of more than 15% in Part 1.
In the Phase 2 study, MariTide showed up to a 20% average weight loss in patients with obesity without Type 2 diabetes (T2D) and a roughly 17% average weight loss in those with T2D. MariTide weight loss was also associated with improvements in pre-specified cardiometabolic parameters, such as waist circumference and blood pressure.
Amgen Inc. (NASDAQ:AMGN) discovers, develops, manufactures, and delivers human therapeutics worldwide. The company serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies.
6. Bristol-Myers Squibb Company (NYSE:BMY)
Beta Value: 0.30
Dividend Yield: 5.04%
Number of Hedge Fund Holders: 76
Bristol-Myers Squibb Company (NYSE:BMY) ranks among the Best Low Volatility Investments in December 2025. Cantor Fitzgerald reaffirmed its Neutral rating and $45 price target on Bristol-Myers Squibb Company (NYSE:BMY) on November 24. Recent data, according to the firm, offers “tangible evidence that FXIa inhibition can blunt thrombosis while sparing hemostasis,” which bolsters trust in BMY’S milvexian SSP program.
The firm described the event as “a needed win” after “a string of class setbacks” and forecast that Bristol-Myers shares would rise as “sentiment around milvexian resets positively.” This comes after Bristol-Myers Squibb Company (NYSE:BMY) had chosen to withdraw its Phase III Librexia-ACS trial for milvexian, a decision reached after an independent analysis revealed the trial was unlikely to meet its primary endpoint.
That said, Cantor Fitzgerald indicated that the sustainability of any favorable sentiment reset will rely on the outcome of Cobenfy ADEPT-2 data projected by year-end 2025 as well as investor willingness to “underwrite those increased odds of success for the milvexian Afib trial.”
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and manufactures innovative medicines to treat serious diseases.
5. RTX Corporation (NYSE:RTX)
Beta Value: 0.37
Dividend Yield: 1.56%
Number of Hedge Fund Holders: 76
RTX Corporation (NYSE:RTX) ranks among the Best Low Volatility Investments in December 2025. On November 25, Jefferies lifted its price target for RTX Corporation (NYSE:RTX) from $175 to $190 while retaining a Hold rating on the defense and aerospace company. The hike came as Jefferies reduced its 2026 adjusted EPS forecast by 2%, to $6.60 from $6.75.
Jefferies noted numerous drivers for the EPS adjustment, including the de-risking of RTX’s pension program, which resulted in decreased pension income, as well as AI and digital investments within business costs.
RTX Corporation (NYSE:RTX) is also boosted by a number of key partnerships. In November 2025, Collins Aerospace and the Royal Netherlands Air and Space Force (RNLASF) signed a deal to develop a new military avionics service facility in the Netherlands to support the European F-35 and CH-47F fleets.
The same month, RTX announced that Collins Aerospace and Emirates had extended their long-term agreement for service, repair, and overhaul activities on the main landing gears of Emirates’ A380 fleet.
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.
4. The Progressive Corporation (NYSE:PGR)
Beta Value: 0.37
Dividend Yield: 0.17%
Number of Hedge Fund Holders: 84
The Progressive Corporation (NYSE:PGR) ranks among the Best Low Volatility Investments in December 2025. BMO Capital maintained its Market Perform rating on The Progressive Corporation (NYSE:PGR) on November 21 and increased its price target to $260 from $247. The boost coincides with the firm’s prediction that Progressive will keep repurchasing shares in the “low billions” through 2026 if the stock’s price-to-earnings multiple remains below 15 times.
This lined up with Progressive’s October earnings per share release, which exceeded forecasts due to better reserve development and reduced catastrophe losses. Although the company’s underlying loss ratio grew sequentially to 68.8%, up 1.7 percentage points month-over-month, it also incurred $73 million in policyholder credit costs in Florida during the month, considerably lower than the $950 million registered in the prior month.
BMO Capital states that The Progressive Corporation (NYSE:PGR) is currently holding almost $7 billion in excess capital. According to the firm, should Progressive issue debt to raise its financial leverage closer to desired levels, it might make an extra $2–3 billion.
The Progressive Corporation (NYSE:PGR) 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. Johnson & Johnson (NYSE:JNJ)
Beta Value: 0.34
Dividend Yield: 2.51%
Number of Hedge Fund Holders: 103
Johnson & Johnson (NYSE:JNJ) ranks among the Best Low Volatility Investments in December 2025. On November 25, Guggenheim reaffirmed a Buy rating and $206 price target on healthcare giant Johnson & Johnson (NYSE:JNJ), citing favorable clinical trial findings for its multiple myeloma therapy. The firm noted preliminary data from the MajesTEC-3 trial, which combines Johnson & Johnson (NYSE:JNJ)’s Tecvayli and Darzalex medications, as “overwhelmingly positive” and potentially creating a novel standard of treatment for relapsed/refractory multiple myeloma patients.
In comparison to current therapy standard’s, the Tecvayli-Darzalex combination considerably enhanced both progression-free survival and overall survival. Previous Phase 2 data also demonstrated encouraging outcomes, with all evaluable patients achieving a 100% overall response rate with little residual disease negativity.
Guggenheim believes that the data presentation at the upcoming annual American Society of Hematology Meeting in December will highlight a “paradigm shift” in multiple myeloma treatment, potentially boosting Tecvayli’s market share.
Johnson & Johnson (NYSE:JNJ) is a diversified healthcare company. It operates through three main segments: Innovative Medicine, MedTech, and Consumer Health. Its products range from pharmaceuticals and medical devices to widely recognized consumer brands.
2. Eli Lilly & Company (NYSE:LLY)
Beta Value: 0.35
Dividend Yield: 0.56%
Number of Hedge Fund Holders: 114
Eli Lilly & Company (NYSE:LLY) ranks among the Best Low Volatility Investments in December 2025. Eli Lilly & Company (NYSE:LLY) reached another milestone on November 21, becoming the first drugmaker to join the exclusive $1 trillion club populated by tech behemoths and cementing its position as a weight-loss powerhouse.
The company’s stock has rallied more than 35% this year, owing primarily to the staggering rise of the global weight-loss market.
Moreover, on November 24, Bernstein SocGen Group reiterated its Outperform rating on Eli Lilly & Company (NYSE:LLY) , with a $1,300 price target. The firm maintained a favorable view on the drug maker as Eli Lilly & Company (NYSE:LLY) continues to investigate potential in the Alzheimer’s disease field using incretin-based medicines.
According to Bernstein SocGen, Eli Lilly & Company (NYSE:LLY) would probably devise an alternate clinical trial method than the current trials, possibly addressing earlier-stage Alzheimer’s patients and using a drug like Brenipatide.
Eli Lilly & Company (NYSE:LLY) is a major global pharmaceutical company that develops, manufactures, and distributes a wide range of drugs. Founded in 1876, it has grown to become one of the world’s largest pharmaceutical companies.
1. Alibaba Group Holding Limited (NYSE:BABA)
Beta Value: 0.33
Dividend Yield: 0.67%
Number of Hedge Fund Holders: 130
Alibaba Group Holding Limited (NYSE:BABA) ranks among the Best Low Volatility Investments in December 2025. On November 26, Bernstein SocGen Group maintained its Outperform rating for Alibaba Group Holding Limited (NYSE:BABA) but lowered its price target from $200 to $190. The adjustment came despite management’s optimistic tone during the recent analyst call, where Alibaba Group Holding Limited (NYSE:BABA) placed a strong emphasis on its artificial intelligence initiative.
Moreover, Alibaba’s second-quarter results, released on November 26, revealed revenues of RMB 248 billion, above consensus projections by about RMB 3 billion and representing a 5% year-over-year rise. The Chinese e-commerce and technology giant also revealed impressive cloud performance, with a 34% year-over-year growth in its cloud segment and a 10% year-over-year gain in Customer Management Revenue (CMR), which met market forecasts.
According to Bernstein, Alibaba Group Holding Limited (NYSE:BABA) is focusing on strengthening the relationship between its food delivery, rapid commerce, and core e-commerce operations in order to significantly reduce food delivery losses in the final quarter of the year through greater average order values and improved rider cost efficiency.
Alibaba Group Holding Limited (NYSE:BABA) is a Hong Kong-based provider of technology infrastructure and marketing reach. Founded in 1999, the company operates several businesses, including Taobao and Tmall, 1688.com, AliExpress, and Daraz.
While we acknowledge the potential of BABA 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 BABA and that has 100x upside potential, check out our report about this cheapest AI stock.
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