In this article, we will look at the 10 Best Low Volatility Large Cap Stocks to Invest In.
On November 24, Fundstrat’s global head of technical strategy, Mark Newton, appeared on CNBC’s ‘Squawk Box’ to talk about what to make of the recent volatility in the stock market, along with the market trends.
He stated that it’s less about the day-to-day volatility and more about the fact that we have seen meaningful divergence between technology and the rest of the market, which began around July. Technology had gone straight higher, while the rest of the market had gone sideways and did not participate.
READ ALSO: 13 Best Large Cap Stocks to Invest in For the Long Term and 13 Cheap Stocks Under $10 to Buy Now.
Talking about the S&P 500, Newton stated that it is a little of a mirage because you see the market going straight up, which changed in the last few weeks, seeing one of the worst Novembers since 2008, down about 2%. This, however, took place against the backdrop of a much more resilient August, September, and October.
Newton further said that he expects more choppiness in the future. While it is an unorthodox time for markets to be going down or sideways, according to him, a lot of it is about lining up expectations about when the next Fed cut is. The notion that the market hates uncertainty is true, according to him, in regards to whether or not we’re going to cut.
With these trends in view, let’s look at the best low volatility large cap stocks to invest in.
Our Methodology
We used Finviz to compile a list of large cap stocks with a beta below 1 that analysts are bullish on and selected the top 10 stocks with the highest number of hedge fund holders as of Q2 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on November 25.
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 Best Low Volatility Large Cap Stocks to Invest In
10. Sanofi (NASDAQ:SNY)
Market Cap: $104.79 billion
Beta: 0.37
Analyst Upside: 22.29%
Number of Hedge Fund Holders: 24
Sanofi (NASDAQ:SNY) is one of the best low volatility large cap stocks to invest in. Deutsche Bank analyst Emmanuel Papadakis maintained a Buy rating on Sanofi (NASDAQ:SNY) on November 25, setting a €110 price target.
The same day, Sanofi (NASDAQ:SNY) announced the approval of Dupixent (dupilumab) by the European Commission for the treatment of “moderate-to-severe chronic spontaneous urticaria (CSU) in adult and adolescent patients 12 years and above with inadequate response to histamine-1 antihistamines (H1AH) and who are naive to anti-immunoglobulin-E (IgE) therapy for CSU”.
Management reported that Sanofi and Regeneron’s Dupixent can be used as a first-line targeted treatment option, and attained approval as the first targeted medicine in the EU in over a decade for chronic spontaneous urticaria.
Sanofi (NASDAQ:SNY) added that the approval was based on phase 3 studies that demonstrated a significant reduction in itch and hives at 24 weeks compared to placebo due to Dupixent.
Sanofi (NASDAQ:SNY) researches, produces, and distributes pharmaceutical products. The company’s operations are divided into the Pharmaceuticals, Consumer Healthcare, and Vaccines segments.
9. Unilever PLC (NYSE:UL)
Market Cap: $110.87 billion
Beta: 0.22
Analyst Upside: 18.42%
Number of Hedge Fund Holders: 27
Unilever PLC (NYSE:UL) is one of the best low volatility large cap stocks to invest in. Unilever PLC (NYSE:UL) received a rating update from Bank of America Securities analyst Antoine Prevot on November 25, who reiterated a Buy rating on the stock and set a p5,400.00 price target.
The company reported its fiscal Q3 2025 results on October 23, announcing an underlying sales growth of 3.9% (4.0% excluding Ice Cream), along with volume growth of 1.5% (1.7% excluding Ice Cream). In addition, Power Brands experienced an underlying sales growth of 4.4%, with volume growth of 1.7%.
The results reflect that Unilever PLC (NYSE:UL) continued to outperform in developed markets in fiscal Q3, supported by its solid innovation program, and stepped up its emerging markets performance with a return to growth in China and Indonesia. It added that growth was broad based across all the company’s Business Groups, and was driven by its Power Brands.
In addition, Unilever PLC (NYSE:UL) plans to complete the Demerger of the Ice Cream business by year’s end, creating a “simpler” Unilever with a “sharper focus and structurally higher margin profile”. The company’s outlook for the full year 2025 remains unchanged, and it expects underlying sales growth to be within its range of 3% to 5%. Despite subdued market conditions, Unilever PLC (NYSE:UL) expects second-half growth to be ahead of the first half.
Unilever PLC (NYSE:UL) is a fast-moving consumer goods (FMCG) company that operates through five segments: Personal Care, Nutrition, Beauty and Well-Being, Home Care, and Ice Cream. Unilever PLC (NYSE:UL) offers over 400 brands worldwide. Its Beauty & Well-being segment includes skin care, hair care, and prestige beauty, while the Personal Care segment includes oral care products, deodorant, and skin cleansing. The Home Care segment manages fabric care and cleaning products.
8. Marsh & McLennan Companies, Inc. (NYSE:MMC)
Market Cap: $88.63 billion
Beta: 0.75
Analyst Upside: 16.63%
Number of Hedge Fund Holders: 60
Marsh & McLennan Companies, Inc. (NYSE:MMC) is one of the best low volatility large cap stocks to invest in. Wells Fargo analyst Elyse Greenspan maintained a Hold rating on Marsh & McLennan Companies, Inc. (NYSE:MMC) on November 25, setting a price target of $212.00.
Marsh & McLennan Companies, Inc. (NYSE:MMC) recently announced several developments, including the appointment of James Addington-Smith as CEO of Marsh UK on November 19. Mr. Addington-Smith is set to take up the new role early in 2026, subject to regulatory approval, and would report to Flavio Piccolomini, CEO, Marsh McLennan, International.
Separately, Marsh & McLennan Companies, Inc. (NYSE:MMC) and Bloomberg Media announced a strategic knowledge partnership on October 22, powering select Bloomberg Media event properties, including Qatar Economic Forum, Bloomberg New Economy Forum, Bloomberg New Economy Coalitions, Bloomberg House at Davos, and Bloomberg Invest New York.
It marks the first media partnership reflecting the new Marsh brand set to launch globally next year. The new Marsh brand represents the company’s specialized capabilities ranging across management consulting, reinsurance and capital, people and investments, and risk.
Marsh & McLennan Companies, Inc. (NYSE:MMC) is a professional services firm that offers clients advice and solutions in risk, strategy, and people. The company’s operations are divided into Risk and Insurance Services, and Consulting segments.
7. Texas Instruments Incorporated (NASDAQ:TXN)
Market Cap: $146.52 billion
Beta: 0.99
Analyst Upside: 21.38%
Number of Hedge Fund Holders: 68
Texas Instruments Incorporated (NASDAQ:TXN) is one of the best low volatility large cap stocks to invest in. Citi analyst Christopher Danely maintained a Buy rating on Texas Instruments Incorporated (NASDAQ:TXN) on November 24, setting a price target of $235.00.
In a separate development, Texas Instruments Incorporated (NASDAQ:TXN) announced on November 6 the opening of its newest, state-of-the-art assembly and test factory in Melaka, Malaysia, TIEM2, featuring advanced factory automation to probe, bump, test, and assemble billions of analog and embedded chips annually. These are essential for nearly all kinds of electronic systems, ranging from vehicles to smartphones to data centers.
Management further reported that the company’s new in-production six-level factory in Melaka spans over 900,000 square feet and connects to its existing Melaka assembly and test factory. The combined facilities now span over 1.4 million square feet of manufacturing space for the transformation of processed semiconductor wafers into finished chips.
Texas Instruments Incorporated’s (NASDAQ:TXN) Melaka expansion reflects a potential investment of up to MYR 5 billion, and would be equipped to align with demand for analog and embedded processing chips over time. When fully operational, the factory would also be able to support up to 500 local jobs.
In addition, the investment supports Texas Instruments Incorporated’s (NASDAQ:TXN) plans to bring 90% of its assembly and test operations internal by 2030, bolstering its international manufacturing operations by controlling and owning its supply chain.
Texas Instruments Incorporated (NASDAQ:TXN) is involved in the design and manufacture of semiconductors. Its operations are divided into the following segments: Analog, Embedded Processing, and Other.
6. Lockheed Martin Corporation (NYSE:LMT)
Market Cap: $106.62 billion
Beta: 0.23
Analyst Upside: 14.48%
Number of Hedge Fund Holders: 73
Lockheed Martin Corporation (NYSE:LMT) is one of the best low volatility large cap stocks to invest in. On November 23, Seaport Global analyst Richard Safran maintained a Buy rating on Lockheed Martin Corporation (NYSE:LMT) and set a $544 price target.
Separately, Lockheed Martin Corporation (NYSE:LMT) announced on November 19 that with industry partners and the US Air Force, it controlled an uncrewed aerial system (UAS) from the cockpit of a 5th Gen fighter while in flight. An F-22 Raptor pilot managed to successfully employ an open interface in the cockpit during the flight out of Nellis Air Force Base, Nevada, to send control directions to another airborne UAS.
Management stated that the effort shows Skunk Works driving a “breakthrough in air combat capability, where single-seat aircraft command and control drones with simple and intuitive interfaces in the cockpit”. The F-22 pilot used a pilot vehicle interface (PVI) to command the drone for the execution of a specific mission profile, with the PVI representing “a flexible system to provide integration-ready capabilities for both current and future platforms”.
Lockheed Martin Corporation (NYSE:LMT) is a global security and aerospace company that designs, develops, researches, manufactures, and integrates technology systems, services, and products. The company operates through the following business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space.
5. Lowe’s Companies, Inc. (NYSE:LOW)
Market Cap: $131.40 billion
Beta: 0.96
Analyst Upside: 20.79%
Number of Hedge Fund Holders: 75
Lowe’s Companies, Inc. (NYSE:LOW) is one of the best low volatility large cap stocks to invest in. Lowe’s Companies, Inc. (NYSE:LOW) received a rating update from Citi analyst Steven Zaccone on November 21, who assigned a Hold rating to the stock with a $250 price target.
The rating update followed the company’s release of its fiscal Q3 2025 earnings on November 19, with net earnings for the quarter reaching $1.6 billion. Diluted earnings per share was $2.88, compared to diluted EPS of $2.99 in fiscal Q3 2024.
Lowe’s Companies, Inc. (NYSE:LOW) also reported that the total sales for the quarter were $20.8 billion, up from $20.2 billion in the prior-year quarter. Similarly, comparable sales also experienced a 0.4% growth, driven primarily by double-digit growth in home services, an 11.4% online sales growth, and continued growth in Pro sales.
The company also updated its full year 2025 outlook, and now expects total sales of $86.0 billion (previously $84.5 to $85.5 billion). In addition, comparable sales are anticipated to be flat compared to the previous year.
Lowe’s Companies, Inc. (NYSE:LOW) offers home improvement products in various categories, including appliances, lawn and garden, kitchens and baths, and building materials, among others. Its portfolio includes an elaborate collection of national brand-name merchandise and its private brands.
4. The Cigna Group (NYSE:CI)
Market Cap: $74.28 billion
Beta: 0.28
Analyst Upside: 23.70%
Number of Hedge Fund Holders: 80
The Cigna Group (NYSE:CI) is one of the best low volatility large cap stocks to invest in. Bank of America Securities analyst Kevin Fischbeck maintained a Buy rating on The Cigna Group (NYSE:CI) on November 21, setting a price target of $378.
The analyst based the rating on the company’s overall financial outlook and strategic positioning, stating that the implications of The Cigna Group’s (NYSE:CI) transition to a rebate-free model for its Pharmacy Benefit Manager (PBM) business are being misunderstood by the market. He acknowledged that while concerns about potential margin compression exist, the model provides The Cigna Group (NYSE:CI) with a distinct position compared to its competitors, which makes it an attractive investment opportunity.
Fischbeck further supported the optimistic rating with the company’s strong free cash flow yield and potential for stock buybacks, adding that the upcoming strategic disclosures and financial results are likely to offer increased clarity regarding the company while also catalyzing stock performance.
The analyst also highlighted that the current trading price of The Cigna Group (NYSE:CI) points towards considerable upside potential. The stock’s median price target of $278.83 implies an upside of 23.70% from current levels.
The Cigna Group (NYSE:CI) provides global health services and operates through the following segments: Evernorth Health Services, Cigna Healthcare, Other Operations, and Corporate.
3. Pfizer Inc. (NYSE:PFE)
Market Cap: $142.37 billion
Beta: 0.43
Analyst Upside: 13.82%
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the best low volatility large cap stocks to invest in. On November 24, Guggenheim lifted the price target on Pfizer Inc. (NYSE:PFE) to $35 from $33 while keeping a Buy rating on the stock.
The firm told investors that Pfizer Inc.’s (NYSE:PFE) acquisition of Metsera, Inc. marks a “a wise strategic move” in order to gain traction amid the rapid growth dynamics of the obesity market, especially after the recent setbacks experienced by the company’s oral GLP-1 programs.
Pfizer Inc. (NYSE:PFE) announced the successful acquisition of Metsera, Inc. on November 13, stating that the acquisition brings “highly differentiated clinical-stage obesity candidates with potential to reshape the treatment landscape”.
Management added that the acquisition positions Pfizer Inc. (NYSE:PFE) to lead in one of the most high-growth and dynamic therapeutic areas, complementing and transforming its Internal Medicine portfolio by adding a number of promising therapeutic candidates.
These include “MET-097i, a weekly and monthly injectable GLP-1 receptor agonist (RA) about to begin Phase 3 development; MET-233i, a monthly amylin analog candidate being evaluated as monotherapy and in combination with MET-097i in Phase 1 development; an oral GLP-1 RA candidate in Phase 1 development; and additional preclinical nutrient-stimulated hormone therapeutics”.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets.
2. The Progressive Corporation (NYSE:PGR)
Market Cap: $133.06 billion
Beta: 0.37
Analyst Upside: 15.02%
Number of Hedge Fund Holders: 99
The Progressive Corporation (NYSE:PGR) is one of the best low volatility large cap stocks to invest in. BMO Capital analyst Michael Zaremski lifted the price target for The Progressive Corporation (NYSE:PGR) to $260 from $247 on November 21 while keeping a Market Perform rating on the shares.
The rating update came after the company reported its October results, with the firm stating that while The Progressive Corporation (NYSE:PGR) only repurchased a token $24M in October, it expects the company to repurchase in the low billions through 2026 if its P/E multiple stays below 15-times.
BMO added that The Progressive Corporation (NYSE:PGR) has had consistently excellent margins, with double-digit auto inflationary pressures decelerating off all-time highs.
The Progressive Corporation (NYSE:PGR) reported its October earnings on November 19, with $7.002 billion in net premiums written in 2025 compared to $6.578 billion in the same month last year. Net income for the month also rose to $846 million in 2025 compared to $408 million in October 2024, reflecting a change of 107%.
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. The company operates through the Personal Lines, Commercial Lines, and Property segments.
1. ServiceNow, Inc. (NYSE:NOW)
Market Cap: $169.69 billion
Beta: 0.96
Analyst Upside: 39.53%
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the best low volatility large cap stocks to invest in. ServiceNow, Inc. (NYSE:NOW) was initiated with a Neutral rating by Macquarie analyst Steven Koenig on November 25 with a price target of $860. The firm told investors that it considers ServiceNow, Inc. (NYSE:NOW) to be a “great company but only a fair stock” at current share levels.
Although the analyst acknowledges its position as a leading company in the SaaS sector with solid capabilities in IT service management and workflow automation, the stock is currently trading at a premium to its software peers. According to Koenig, this makes the valuation concern a notable reason supporting the Hold rating, as the stock’s current price may not be able to completely justify its potential upside.
In addition, the firm also believes that easing negative software-as-a-service sentiment on AI fears “could take time”, and highlighted the broader negative sentiment associated with SaaS companies arising from competition from AI-native firms.
While the analyst notes that ServiceNow, Inc. (NYSE:NOW) boasts a strong market position with execution capabilities, he added that the absence of a clear catalyst for sentiment shift, along with competitive pressures, warrants a cautious stance for the stock.
ServiceNow, Inc. (NYSE:NOW) offers an AI platform for business transformation, boosting productivity and maximizing business outcomes. Its intelligent platform, Now Platform, provides end-to-end workflow automation for digital businesses. Now Platform functions as a cloud-based solution embedded with AI and ML.
While we acknowledge the potential of NOW 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 NOW and that has 100x upside potential, check out our report about this cheapest AI stock.
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