In this article, we will take a look at the 10 best safe stocks to buy according to analysts.
Market Will End 2024 Positively, Strategist Says
Statistically, November and December tend to be great months for stocks. However, with the economic turmoil in question, will stocks end the year on a positive note? On November 30, Quincy Krosby, chief global strategist at LPL Financial, joined Market Domination on Yahoo Finance to discuss her market thesis. Krosby believes that the market will end the year in “positive territory,” assuming that no unexpected or headline events occur moving forward. She also added that portfolio managers will strive to report gains, and will most likely close books before the end of 2024.
Krosby revealed that the market is very “enthusiastic” about the new administration, despite serious concerns over tariffs. She shared that while 2024 has been a solid year for stocks, some moderation is expected in 2025. She also said that the number of earning revisions coming down for the year ahead is evidence of moderation, adding that if the Fed decides to withdraw its easing cycle plan or alter it, the market is going to be “pretty disappointed.”
She stated that in 2025, the market will have greater funding needs, reaching nearly $7.5-8 trillion, and greater uncertainty along with geopolitical risks. However, despite this, the market has been marching higher and navigating through these risks and is expected to continue doing so. Speaking about “waning business pricing power,” Krosby stated that while consumers have been spending, they are looking for “more bargains.” Companies have also been trying to beat tariffs and figure out which areas of the market are going to get more expensive.
Speaking of market uncertainty, Krosby believes how the market unfolds will be crucial and critical. Overall, she shared her bullish stance on industrials, especially names in the defense, building, and defense manufacturing industries. She also added that stocks in the communication sector, especially those with higher dividend offerings, particularly if the Fed easing cycle goes as planned, are going to perform better in the coming year.
While the future of the Fed cycle and inflationary pressures may be uncertain, some stocks have historically been safe to invest in. That said, let’s take a look at the 10 safe stocks to buy according to analysts.
A financial analyst looking at a monitor displaying the stocks of the public company.
Our Methodology
To come up with the 10 safe stocks to buy according to analysts we consulted multiple reports and also screened for reliable growers using the Finviz stock screener. We compiled an initial list of 30 stocks. We then referred to the 10-year revenue growth rate for each stock and a solid analyst upside, of at least 8%. The 10 safe stocks to buy according to analysts are in ascending order of the analyst upside as of December 9, 2024. We also included the hedge fund sentiment of each stock.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Safe Stocks To Buy According to Analysts
10. Mastercard Incorporated (NYSE:MA)
Analyst Upside as of December 9, 2024: 8%
10-Year Revenue Growth Rate: 11.5%
Number of Hedge Fund Holders: 131
Mastercard Incorporated (NYSE:MA) is a multinational payment services corporation in the United States that ranks 10th on our list of the safest stocks to buy according to analysts. It facilitates electronic funds transfers through branded debit cards and credit cards. The company provides financial services to large companies, small to medium-sized enterprises, banks, credit unions, and the public sector.
Mastercard Incorporated (NYSE:MA) aims to bring 1 billion people into the digital economy by 2025. To achieve such, the company launched several partnerships and products in the past few months. On November 12, the company unveiled a new platform, Mastercard Biz360, to help businesses streamline their operations using technology and digital tools. Previously, on November 5, the company launched Pay Local, a new service to help digital wallet providers find new ways to pay. At the moment, more than 35 million merchants accept these wallets, positioning the initiative as a success already.
In the third quarter of 2024, Mastercard Incorporated (NYSE:MA) increased its revenue by 13% and net income by 2% year-over-year. During the same quarter, the company saw a 10% increase in gross dollar volume and an 11% increase in purchase volume. Other than payment services, the company is also venturing into value-added services like data analytics, fraud prevention, and cybersecurity solutions, which posted an 18% increase in sales in the third quarter.
Ithaka Group stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q3 2024 investor letter:
“Mastercard Incorporated (NYSE:MA) is one of two leading companies (along with Visa, which we also own) that helps match information and funds between banks that have relationships with card-carrying consumers and banks that have relationships with merchants, thus ensuring payment transactions are reliable and secure. Since the company’s founding in 1966, Mastercard has benefi ted from the growth in personal consumption expenditure, the strong secular shift from cash and checks to credit and debit cards, and a highly profi table business model that generates high incremental operating margins and hence ample and growing free cash fl ow per share. During the third quarter Mastercard’s stock outperformed as an in-line earnings announcement and strong global credit growth helped pull the stock out of a six-month consolidation.”
9. UnitedHealth Group Incorporated (NYSE:UNH)
Analyst Upside as of December 9, 2024: 12%
10-Year Revenue Growth Rate: 11.9%
Number of Hedge Fund Holders: 112
UnitedHealth Group Incorporated (NYSE:UNH) is a multinational health insurance and services company based in the United States that operates several subsidiaries including UnitedHealthcare, Optum, Change Healthcare, and United Health Foundation. The company has recently expanded its services to several new locations and plans to significantly reduce the cost of healthcare for patients as part of its Medicare Advantage Plan for 2025. As part of a recent announcement on November 1, UnitedHealth Group Incorporated (NYSE:UNH) expanded its individual and family plans to 30 more states on the Health Insurance Marketplace.
On the financial front, UnitedHealth Group Incorporated (NYSE:UNH) logged $100.8 billion in revenue, up by nearly $8.5 billion, in the third quarter of 2024. Revenue was primarily driven by growing customers for its Optum and UnitedHealthcare segments. In addition to that, by the end of Q3 2024, customers served by UNH’s commercial domestic offerings grew by nearly 2.4 million to reach 29.7 million. For its 2025 outlook, UNH expects revenues to range between $450 billion and $455 billion, and cash flows from operations are projected to reach $32 billion to $33 billion.
Mairs & Power Growth Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2024 investor letter:
“One great example of this is UnitedHealth Group Incorporated (NYSE:UNH), a long-term holding of the Fund. Founded in 1974 in Minnetonka, Minnesota, UnitedHealth Group has grown to become the largest managed care organization in the United States. UnitedHealth Group is already working on multiple AI use cases that could potentially save the company billions of dollars in efficiencies over the next several years. For instance, the company’s call centers receive more than a million calls per day. AI could potentially divert or resolve customer concerns without human interaction. We fully admit the company is not perfect and has its ups and downs. Earlier this year, the company was caught up in a large data breach from a company it acquired in 2022. Healthcare is also deeply political, and UnitedHealth Group can often find itself in the political crosshairs during an election year. We’ve seen these political risks play out before and believe UnitedHealth Group will again emerge unscathed.”