In this article, we will discuss the 11 Debt Free Halal Stocks to Buy.
Jitters in the US equity market are rising as concerns about artificial intelligence, a looming software-as-a-service downturn, and ongoing conflict in the Middle East unsettled investors. Major indices have already declined, with the S&P 500 down by 1.8% year to date, reflecting increased selling pressure as investors take profits amid persistent headwinds.
Jack Janasiewicz, portfolio manager at Natixis Investment Managers, notes that the market downturn reflects heightened concerns about stagflation, particularly amid rising energy costs.
“There’s a risk here going forward of this being a protracted issue and it all comes back to that oil price,” he said. “You’ve got a little bit of potential for reprising inflation expectations, but at the same time you got to think about the demand destruction.”
According to Goldman Sachs strategist Peter Oppenheimer, the equity market is exhibiting characteristics similar to those observed before the 2007 financial crisis. In a recent research note, Oppenheimer highlighted that equity risk premia—which measures the excess return investors demand over safer assets—have fallen to levels seen during the financial crisis. Despite declining investor confidence, Oppenheimer is not forecasting a bear market but advises caution regarding a potential correction from current highs.
“We see correction risks as high given current valuations,” Oppenheimer wrote, “but expect this to present a buying opportunity with relatively low risk of a more protracted and deep bear market.”
In light of these uncertainties, maintaining broad geographic, sector, and factor diversification remains essential. Diversification, however, means not only holding different assets but also selecting those that remain resilient under varying pressures.
Debt-free halal stocks are well-positioned for portfolio diversification, offering stability and alignment with Islamic principles. These stocks represent financially sound companies with limited debt exposure.
Our Methodology
To compile this list, we began by reviewing the S&P Shariah ETF, which contains all Shariah-compliant constituents of the larger S&P index and adheres to Islamic principles. We then settled on companies that demonstrate strong financial health, as evidenced by low net debt, healthy cash reserves, and an enterprise value (EV) to their market capitalization (EV-to-market cap ratio) of less than 1. We then shortlisted those stocks with upside potential above 10% based on consensus analyst estimates. The final ranking reflects each stock’s calculated upside potential and the level of hedge fund ownership, which offers additional insight into institutional confidence.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Debt-Free Halal Stocks to Buy
11. AbbVie Inc. (NYSE:ABBV)
AbbVie Inc. (NYSE:ABBV) is one of the debt free halal stocks to buy. On March 3, at the TD Cowen 46th Annual Health Care Conference, AbbVie Inc. (NYSE:ABBV) affirmed its robust research and development pipeline, commercial strategies, and future growth plans.
The company reiterated that it is on course to achieve a high single-digit compound annual growth rate through 2029. The growth will be driven by a diversified pipeline as the company increasingly focuses on bolstering its immunology, oncology, and neuroscience, with promising assets like SKYRIZI and RINVOQ.
AbbVie is also exploring B-cell-depleting strategies and mRNA-based CAR-T therapies for rheumatologic diseases. It’s also leveraging its expertise in immunology and CNS to develop an obesity drug. Even as it continues developing its pipeline, it is launching tavapadone to target a $5 billion market opportunity in Parkinson’s disease.
The pipeline development and launch of new drugs come on the heels of AbbVie increasing its research and development expenditure, with over $8 billion already spent on business development over the past two years.
AbbVie Inc. (NYSE:ABBV) is a global research-driven biopharmaceutical company focused on discovering, developing, and commercializing advanced therapies for complex, serious diseases. Key areas include immunology, oncology, neuroscience, eye care, and aesthetic medicine (via Allergan).
10. Micron Technology, Inc. (NASDAQ:MU)
Micron Technology (NASDAQ:MU) is one of the debt free halal stocks to buy. On March 12, Mizuho kept its Outperform rating on Micron Technology (NASDAQ:MU) and set a price target of $480. This came just before Micron’s earnings report on March 18.
Mizuho expects Micron’s results to be stronger than Wall Street’s forecasts. For the May quarter, they see $25 billion in revenue and $11.13 earnings per share (EPS), which is about 8% higher than consensus. For the August quarter, they project $27.2 billion in revenue and $12.25 EPS, about 7% above consensus.
The firm believes Micron will benefit from higher prices for DRAM and NAND chips, while supply growth remains limited. They also expect big cloud companies (hyperscalers) to boost spending by nearly 60% in 2026.
Demand for HBM3e memory is strong ahead of HBM4, with prices expected to be 30–45% higher. LPDDR5 demand is also rising, with Rubin chips carrying three times more content than Blackwell.
NAND chips are seeing support from AI‑driven demand for QLC eSSD and new technology upgrades expected in 2026–27. Overall, Mizuho sees a strong memory market, tight supply, and AI demand driving better pricing and margins for Micron.
Micron Technology, Inc. (NASDAQ:MU) is a leading American semiconductor company that designs, manufactures, and sells high-performance memory and storage technologies, including DRAM, NAND flash, and NOR memory.
9. QUALCOMM, Inc. (NASDAQ:QCOM)
Qualcomm Inc. (NASDAQ:QCOM) is one of the debt free halal stocks to buy. On March 3, Qualcomm Inc. (NASDAQ:QCOM) entered into a strategic collaboration with Keysight to develop high-precision radio-frequency digital twins in 5G advanced and emerging 6G networks.
The strategic collaboration seeks to help chipset device and network manufacturers optimize Multiple-Input Multiple-Output (MIMO) systems. There are plans to demonstrate how digital twins can help close the gap between simulation and real-world network performance.
The two companies have already tested a mobile test platform powered by Qualcomm Modem-RF with network emulation solutions. The results affirmed scalable advanced MIMO configurations that can help foster AI-native physical-layer enhancements for 6G wireless systems.
According to Tingfang Ji, Vice President of Engineering and Head of 6G Research at Qualcomm, the test results show how the company’s advanced machine learning algorithms can help improve downlink performance while supporting 5G innovation.
“By combining Qualcomm’s modem test platform with our AI-enabled base station emulation solutions, we are enabling rigorous evaluation of ML-based CSI compression and its impact on advanced MIMO performance and 6G research directions,” said Lucas Hansen, Vice President and General Manager, Wireless Test Group, Keysight.
QUALCOMM, Inc. (NASDAQ:QCOM) is a global leader in the development and commercialization of foundational technologies for the wireless industry, specializing in semiconductors, software, and services for mobile devices, automotive, and the Internet of Things (IoT).
8. Alphabet Inc. (NASDAQ:GOOGL)
Alphabet Inc. (NASDAQ:GOOGL) is one of the debt free halal stocks to buy. On March 11, Alphabet Inc. (NASDAQ:GOOGL)’s fiber internet unit GFiber said it will merge with Astound Broadband, which is backed by investment firm Stonepeak. The deal will create one of the largest independent broadband providers in the U.S.
Under the agreement, Stonepeak will own the majority stake, while Alphabet will keep a significant minority share. Financial details were not shared.
The new company will be led by GFiber’s CEO Dinni Jain and his team. It will combine GFiber’s fast‑growing fiber networks in big cities with Astound’s established broadband systems. Together, they aim to serve millions of customers as demand for high‑speed internet grows.
Executives said the merger will help GFiber expand faster and move toward financial independence. The deal still needs regulatory approval and is expected to close in the fourth quarter of 2026.
Earlier on March 5, Waystar expanded its strategic collaboration with Alphabet Inc. in an effort to advance the transition towards an autonomous revenue cycle.
Under the terms of the agreement, Waystar is to deeply integrate its AI-powered platform with Google Cloud’s Gemini models and data infrastructure. The ultimate goal is to enable hyperscale deployments across complex revenue cycle workflows. According to Aashima Gupta, global director, Healthcare Strategy & Solutions, Google Cloud, the embedding of Gemini’s agentic capabilities into Waystar workflows should accelerate automation toward a self-learning revenue cycle.
Since initiating their collaboration in 2024, Waystar and Google Cloud have applied generative and agentic AI innovations in addressing real-world revenue cycle challenges, resulting in the development of industry-first generative AI capabilities for denial prevention and recovery.
The collaboration has also introduced Gemini 3.1 Flash Lite, a new AI model that offers significant improvements in cost and speed. Designed for enterprises and developers, this model offers robust reasoning and multimodal abilities.
Alphabet Inc. (NASDAQ:GOOGL) is a multinational holding company that dominates in internet search, advertising, cloud computing (Google Cloud), software (Android, Chrome), and hardware (Pixel, Nest, Fitbit), while investing in AI, autonomous driving (Waymo), and biotechnology.
7. Applied Materials, Inc. (NASDAQ:AMAT)
Applied Materials (NASDAQ:AMAT) is one of the debt free halal stocks to buy. On March 2 at the Morgan Stanley Technology, Media & Telecom Conference 2026, Applied Materials (NASDAQ:AMAT) reiterated it is positioned for growth driven by AI demand. It is also focused on increasing margins through cost management and value-added solutions.
The company has already started scaling operations as it strives to meet increasing demand for semiconductor equipment in the AI-driven sector. According to Dr. Prabhu Raja, President of the Semiconductor Products Group, the company boasts of enhanced planning and manufacturing capabilities that position it for growth.
Applied Materials is leveraging its enhanced manufacturing capabilities to capitalize on strong demand for semiconductor equipment. It has started tracking over 100 fabs in various development Stages. The company is a market leader in foundry-logic DRAM and advanced packaging. It also controls a significant market share in non-litho patterning at about 50%.
It has also started ramping up investments in EPIC aimed at accelerating innovation while commercializing partnerships with universities and manufacturers. Consequently, more than 20% shipment growth is expected this year, the highest since 2021.
Applied Materials (NASDAQ:AMAT) is a global leader in materials engineering solutions, providing the essential equipment, services, and software used to manufacture semiconductor chips, advanced displays, and related technologies. It enables the production of smaller, faster, and more efficient electronics by applying atomic-level precision to deposit, shape, and analyze materials on semiconductor wafers.
6. Palo Alto Networks, Inc. (NASDAQ:PANW)
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the debt free halal stocks to buy. On March 11, Palo Alto Networks, Inc. (NASDAQ:PANW) said its board approved a new $1 billion stock buyback program. This decision was made on March 10, 2026, after the company’s earlier program had no funds left as of March 6.
In February 2026, Palo Alto Networks had already repurchased about 6.8 million shares for $1 billion at an average price of $147.69 per share through open market transactions.
The new authorization lets the company buy back shares when it sees good opportunities, using its available cash. Buybacks can be done through open market purchases, private deals, block trades, or trading plans. The program will run until December 31, 2026, but the company can pause or stop it at any time.
As of March 6, 2026, Palo Alto Networks had about 811 million shares outstanding. This new plan expands the company’s buyback program, which started in February 2019 and has been extended several times, including in 2020, 2021, 2022, 2023, 2024, and 2025.
Overall, the move shows Palo Alto Networks’ commitment to returning value to shareholders while continuing to strengthen its position in the cybersecurity market.
Palo Alto Networks, Inc. (NASDAQ:PANW) is a global, industry-leading cybersecurity company that provides integrated, AI-driven security solutions to tens of thousands of organizations across cloud, network, and mobile environments.
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