In this article, we will take a look at the 10 Safe Stocks to Buy for the Long Term in 2026.
According to a CNBC report published on May 26, JPMorgan believes there may be a buying opportunity developing in one overlooked part of the stock market, with investors also getting paid to wait through dividend income. Mislav Matejka, the bank’s head of global and European equity strategy, said low-volatility stocks in the US and Europe have struggled over the past few months as bond yields moved higher. These stocks typically come from sectors such as consumer staples, healthcare, utilities, insurance, and industrials. They are generally known for more stable price movements and consistent dividend payouts.
Matejka noted that so-called “low vol” stocks have shown an inverse correlation with bond yields this year. Since the start of the Middle East conflict, the group of US low-volatility stocks has fallen about 6%, while bond yields have climbed by 55 basis points. One basis point equals 0.01%, and bond yields usually move in the opposite direction of prices.
He also noted that if bond yields rise sharply again, with the 10-year Treasury yield moving closer to 5%, low-volatility stocks could still begin outperforming on a relative basis despite the usual inverse relationship. Matejka expects yields to move lower over the medium term. He made the following comment:
“The low Vol trade is worth considering now given the attractive entry point on the back of past weakness, and given that it is likely to work in a range of macro scenarios from here. Put another way, the trade is not conditional on the overall market moving lower. Ahead of the Iran conflict, low Vol outperformed during a strongly rising broader equity market.”
Given this, we will take a look at some of the safe stocks to invest in.
Our Methodology:
For this list, we screened for companies with solid financials, strong balance sheets, and consistent dividend histories. From that list, we picked the top companies that were most popular among hedge funds, as per Insider Monkey’s database of Q1 2026.
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. Cincinnati Financial Corporation (NASDAQ:CINF)
Number of Hedge Fund Holders: 32
On May 26, Piper Sandler analyst Paul Newsome raised the firm’s price target on Cincinnati Financial Corporation (NASDAQ:CINF) to $175 from $161 and maintained a Neutral rating on the shares. The firm pointed to the stock’s recent performance and the passage of time as key reasons behind the move. Piper said it has slightly increased price targets for most insurance carriers while lowering targets for some insurance brokers. The firm’s analysis takes a bottom-up approach. After reviewing first-quarter results, Piper believes carriers may be in a stronger position than brokers right now. Underwriting performance came in better than expected for carriers, while brokers saw softer organic growth trends.
On April 28, BofA raised its price target on Cincinnati Financial (CINF) to $183 from $177 and kept a Buy rating on the stock. Following what the firm described as “a marginal miss” in Q1, analysts modestly increased their EPS forecasts. The update was supported by steady premium growth, even as some business lines continued to face short-term margin pressure.
Cincinnati Financial Corporation mainly provides business, home, and auto insurance through The Cincinnati Insurance Company and its two standard-market property casualty insurance companies.
9. FactSet Research Systems Inc. (NYSE:FDS)
Number of Hedge Fund Holders: 39
On May 27, RBC Capital analyst Ashish Sabadra lowered the firm’s price target on FactSet Research Systems Inc. (NYSE:FDS) to $240 from $243 and maintained a Sector Perform rating on the shares ahead of the company’s Q3 results. The firm expects an ASV, or Annual Subscription Value, to beat, supported by international pricing increases, solid demand, and a strong pipeline across different regions and client types, the analyst said in a research note.
RBC also noted that FactSet’s expanded managed services offerings, competitive product positioning, and structural changes to its sales compensation model continue to support the company’s growth outlook.
FactSet Research Systems Inc. is a global financial digital platform and enterprise solutions provider. The company offers financial data, analytics, and open technology solutions to clients around the world, including individual users.
8. Essex Property Trust, Inc. (NYSE:ESS)
Number of Hedge Fund Holders: 40
On May 27, Truist raised the firm’s price recommendation on Essex Property Trust, Inc. (NYSE:ESS) to $286 from $273. It reiterated a Hold rating on the shares. The firm said it adjusted its model to reflect assumptions of $300M in acquisitions for 2026 and $75M in dispositions, the analyst said in a research note.
On May 15, Scotiabank raised its price goal on ESS to $282 from $278. It maintained an Outperform rating on the shares. The firm said it is updating price targets for the U.S. multifamily REITs under its coverage. Scotiabank expects a slower recovery across Sunbelt markets, estimating that it could take several years to absorb the excess supply created by overbuilding in many of those areas. The firm added that Essex Property remains one of its preferred multifamily names because of its exposure to Northern California.
Essex Property Trust, Inc. is a self-administered and self-managed real estate investment trust. The company acquires, develops, redevelops, and manages apartment communities in selected residential areas along the West Coast of the United States.
7. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
Number of Hedge Fund Holders: 48
On May 20, Jefferies upgraded C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) to Buy from Hold. It also lifted the price target to $200 from $195. Analyst Stephanie Moore said a visit to the company’s headquarters “materially reinforced” its conviction in C.H. Robinson’s technology and productivity transformation. Jefferies also said the regulatory environment following the Montgomery versus Caribe Transport Supreme Court ruling structurally favors larger, scaled brokers. The analyst added that the company’s balance sheet positions it as a “natural consolidator,” according to a research note. The firm believes current share levels offer a “compelling entry point” for investors.
On May 15, JPMorgan added CHRW to its Analyst Focus List while maintaining an Overweight rating on the shares. The firm said the Supreme Court’s Montgomery versus Caribe Transport ruling exposes brokers to the same negligent hiring liability faced by carriers. JPMorgan believes smaller truckload carriers and brokers could gradually leave the market as the expanded liability leads to higher compliance and insurance costs. The firm also said the market may be underestimating Robinson’s scale advantages in a post-Montgomery environment.
C.H. Robinson Worldwide, Inc. is a global logistics provider. The company operates through its North American Surface Transportation (NAST), Global Forwarding, and All Other and Corporate segments.
6. Ecolab Inc. (NYSE:ECL)
Number of Hedge Fund Holders: 60
On May 27, UBS upgraded Ecolab Inc. (NYSE:ECL) to Buy from Neutral. It also raised its price target on the stock to $325 from $293. The firm said it expects the shares to re-rate higher as investors see Ecolab’s pricing accelerate in the second half of 2026 to offset raw material costs.UBS also believes the company could gain market share in consumer markets through its “OneECL” initiatives. In a research note, the analyst said Ecolab’s growing exposure to high-tech and faster-growing industries may help increase its annual volume growth to 4%, compared to its historical range of 1% to 2%.
On May 20, Jefferies lowered its price recommendation on ECL to $345 from $352. It reiterated a Buy rating on the shares. The firm said Ecolab highlighted its “Circle-the-Customer” model during a well-attended presentation at the NRA show. According to the analyst, the model focuses on delivering enterprise-wide outcomes by combining chemistry, equipment, and digital insights to create long-term efficiency gains and stronger pricing power. Jefferies is projecting a 5.1% sales CAGR and an 11.5% EPS CAGR through 2028.
Ecolab Inc. provides water, hygiene, and infection prevention solutions and services designed to protect people and resources essential to life.
5. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 94
On May 27, Mizuho raised the firm’s price recommendation on Exxon Mobil Corporation (NYSE:XOM) to $175 from $159. It reiterated a Neutral rating on the shares. The firm said it expects the impact of the Iran crisis on global oil prices and refining cracks to last longer than previously expected. Mizuho raised its 2026 and 2027 oil price outlooks by 25% and 6%, respectively. It also increased its forecasts for US refining cracks by 61% and 51%. According to the analyst, the recent pullback in stock valuations, despite elevated commodity prices, is creating opportunities for investors looking to generate “alpha” in the US oil and gas sector. The firm also adjusted ratings and price targets across the group.
On May 26, Barclays analyst Betty Jiang raised the firm’s price goal on XOM to $182 from $163 and kept an Overweight rating on the shares. The firm said declining inventories, reduced OPEC spare capacity, and a “muted” U.S. production response to the Middle East conflict are contributing to a tighter oil market backdrop that is not fully reflected in energy stocks. The analyst added in a research note that this environment could lead to a share re-rating for more “oily” exploration and production companies after the conflict. Barclays also lowered its gas price outlook because of near-term oversupply and adjusted ratings and price targets across the integrated oil and exploration and production sector.
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The company’s main operations include the exploration and production of crude oil and natural gas, along with the manufacturing, transportation, trade, and sale of petroleum products, petrochemicals, and specialty products.
4. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 97
On May 26, BofA raised the firm’s price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $135 from $114. It reiterated a Buy rating on the shares. The analyst said Cisco’s recent fiscal Q3 results, along with management’s comments about continued strong demand for Acacia, support a positive view on the underlying demand environment for optical networking.
On May 15, HSBC upgraded CSCO to Buy from Hold. It raised its price target on the stock to $137 from $77. As previously reported, the firm said the company delivered a “modest” beat in fiscal Q3, though new AI orders shifted the conversation around future growth. Management expects FY27 AI revenue to reach at least $6B, which implies roughly 50% year-over-year growth, the analyst told investors. HSBC said stronger momentum in AI infrastructure and improved earnings visibility were key reasons behind the rating upgrade and higher price target.
Cisco Systems, Inc. designs and sells a range of technologies that power the internet. The company is integrating its product portfolios across networking, security, collaboration, applications, and cloud services.
3. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 130
On May 27, Bernstein raised the firm’s price target on UnitedHealth Group Incorporated (NYSE:UNH) to $492 from $444 and maintained an Outperform rating on the shares. The new target implies 27% upside potential. The firm said the higher price target reflects an improved adjusted EPS outlook tied to a recovery in Medicare Advantage, along with higher target multiples. Bernstein believes the company’s projected 16% adjusted EPS CAGR supports a higher valuation multiple during this cyclical recovery phase.
On May 26, Barclays raised its price target on UNH to $429 from $373 and kept an Overweight rating on the shares. The firm said it believes the stock movements across managed care companies following Q1 earnings reports are “durable.” Barclays added that it continues to favor managed care companies over healthcare facilities, noting that inflation and commercial mix are becoming larger sources of earnings risk for providers. The firm also adjusted ratings and price targets across the sector.
UnitedHealth Group Incorporated is a healthcare and well-being company. Its businesses include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare.
2. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 132
On May 26, BofA raised the firm’s price recommendation for Eli Lilly and Company (NYSE:LLY) to $1,251 from $1,133. It reiterated a Buy rating on the shares. The firm said it expects Lilly’s future revenue and profit growth to be driven by a doubling of GLP-1 U.S. market sales by 2033, the analyst told investors.
In separate news, Reuters reported on May 21 that Eli Lilly said its experimental obesity drug helped patients lose more than 28% of their weight over an 18-month period in a key clinical trial. The results could allow the company to seek regulatory approval and potentially launch the next-generation treatment next year.
The results were largely in line with Wall Street expectations and could position retatrutide as one of the most powerful weight-loss drugs in the growing obesity treatment market, where Lilly competes with Novo Nordisk.
Eli Lilly and Company is a medicine company that discovers, develops, manufactures, and markets pharmaceutical products through a single business segment focused on human pharmaceuticals.
1. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 173
On May 27, Broadcom Inc. (NASDAQ:AVGO) announced a partnership with Samsung Electronics to introduce a new broadband-focused reference platform for the global fixed wireless access (FWA) market. The platform combines Broadcom’s BCM6776 Wi-Fi 8 System-on-Chip (SoC) with Samsung’s B1320 5G Modem.
The companies said the platform is the first to bring together 3GPP Release 17 connectivity and the emerging Wi-Fi 8 (IEEE 802.11bn) standard. With broadband demand continuing to grow worldwide, the new platform is designed to improve reliability and deliver more stable network performance.
Broadcom and Samsung said the platform was built with large-scale deployment in mind. It offers mobile operators a cost-effective way to provide fiber-like broadband services while supporting faster service development and wider ecosystem expansion. Several major original equipment manufacturers (OEMs) are already integrating the B1320 and BCM6776 platform into their next-generation gateway products, according to the companies.
Broadcom Inc. develops semiconductors and infrastructure software for organizations handling complex and mission-critical technology operations.
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