In this article, we will take a look at some of the best safe stocks to buy now.
One thing that holds people back from investing is the risk associated with stocks. This is why it’s important to identify stocks that are stable yet forward-looking. In simple terms, safe stocks are companies with a solid balance sheet, consistent earnings, and a compelling business model.
A paper, titled “The Low-volatility Anomaly and the Adaptive Multi-Factor Model,” develops two portfolios: high-volatility and low-volatility, in an attempt to explain the low-volatility anomaly. The findings suggest that the two volatility portfolios are powered by completely different factor exposures, outlining that the better performance of the latter stems from the equilibrium compensation associated with their underlying risk factors.
For investors, this means that investing in safe stocks can deliver strong results, not just because they’re ‘boring’ but because the risk factors that they are tied to are rewarding. As stated by Dan Lefkovitz, an analyst at Morningstar,
“Low-volatility stocks—so looking for stocks that have had, their prices have not bounced around that much in the recent past, haven’t seen big price moves—they were up significantly when the overall market was down.”
Copyright: convisum / 123RF Stock Photo
Our Methodology
We have compiled a list of the best safe stocks to buy now. Using the Finviz stock screener, we filtered for large-cap stocks with a beta of under 1 and a P/E ratio of under 25. Additionally, these stocks have a debt-to-equity ratio of under 0.6 and an ROE of over 10%. The stocks are ranked in ascending order according to the number of hedge fund holdings in them, as data extracted from Insider Monkey’s Q2 2025 database.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Sun Life Financial Inc. (NYSE:SLF)
Number of Hedge Fund Holdings: 15
During the first quarter, Goldman Sachs Group Inc. expanded its holdings in Sun Life Financial Inc. (NYSE:SLF) by 282.5%. Following the purchase of 2,050,891 shares of the company’s stock, the investment bank now owns 2,776,920 shares, valued at $159,006,000.
For investors seeking stable income, Sun Life Financial Inc. (NYSE: SLF) is the ideal stock. From an attractive dividend yield to solid underlying earnings and a conservative payout ratio, the company offers what very few do. With a diversified business mix and a strong presence in several markets, the company appears to be in the right direction.
The company’s transition to a capital-light business model isn’t something hidden. During the Barclays 23rd Annual Global Financial Services Conference, management revealed that the strategy adopted by Sun Life Financial Inc. (NYSE:SLF) to enhance its asset management capabilities has really paid off.
Sun Life Financial Inc. (NYSE:SLF) is a Canadian financial services company that offers asset management, wealth, insurance, and health solutions. Founded in 1871, the company is committed to achieving lifetime financial security.
11. TotalEnergies SE (NYSE:TTE)
Number of Hedge Fund Holdings: 23
TD Cowen has reaffirmed its ‘Hold’ rating on TotalEnergies SE (NYSE:TTE) with a price target of $65.00, implying a potential upside of a modest 4.6%, just before the company’s Annual Investor Day planned for September 29.
Earlier on September 15, 2025, TotalEnergies SE (NYSE:TTE) and QatarEnergy joined Iraqi leaders in Baghdad to announce the construction of a massive seawater supply project and the full-scale development of the Ratawi oil field. This deal highlights the last major milestones of the Gas Growth Integrated Project (GGIP), directed by TotalEnergies, together with its collaborators Basra Oil Company and QatarEnergy.
The future of TotalEnergies SE (NYSE:TTE) looks quite promising. By 2030, the company anticipates that 50% of its total revenue will be derived from LNG production and 20% from renewable energy. Overall, the company maintains a strong presence around the world, particularly in Europe and Africa.
TotalEnergies SE (NYSE:TTE), headquartered in Courbevoie, France, is a multi-energy company that specializes in oil and biofuels, natural gas, biogas, and electricity, among others. Founded in 1924, the company operates through five segments.
10. Cincinnati Financial Corporation (NASDAQ:CINF)
Number of Hedge Fund Holdings: 27
According to the latest filing with the SEC, Brendel Financial Advisors LLC raised its position in Cincinnati Financial Corporation (NASDAQ:CINF) by 729.8% in the second quarter. After acquiring 21,114 shares of the company’s stock, the institutional advisor owns 24,007 shares, which translates to an ownership of about 2.0%.
Just recently, Insurer Financial Strength ratings of Cincinnati Financial Corporation (NASDAQ:CINF) were raised by Fitch Ratings to ’AA-’ from ’A+’. Not only this, the credit rating agency also upgraded Issuer Default Rating to ’A+’ from ’A’ and senior unsecured notes to ’A’ from ’A-’. This points to one thing: the company’s stability is clear to all.
This improved outlook underscores the company’s enhanced capitalization and stable underwriting excellence, supported by a robust profile. The agency also noted that Cincinnati Financial Corporation (NASDAQ:CINF) maintains an equity holding that is nearly twice the industry average.
Cincinnati Financial Corporation (NASDAQ:CINF) is an Ohio-based company that offers property casualty insurance products. Incorporated in 1950, the company operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments.
9. East West Bancorp, Inc. (NASDAQ:EWBC)
Number of Hedge Fund Holdings: 30
Benjamin Gerlinger, an analyst at Citigroup, has reiterated the ‘Buy’ rating on East West Bancorp, Inc. (NASDAQ:EWBC), while raising the price target to $134 from $124, implying a surge of about 25% from the current price. This revision follows the firm’s meeting with the management to highlight improved deposit growth and enhanced net interest income outlook.
The market, too, has an equally strong view on East West Bancorp, Inc. (NASDAQ:EWBC), with some analysts even underscoring the company’s “resilience amid an evolving financial space”. Time and again, the company has proven to be steadfast, much like a rock, in contrast to the rising financial skyscrapers that bend with each market turn.
What’s truly impressive about East West Bancorp, Inc. (NASDAQ:EWBC) is its relationship-driven model that is not just about immersive engagement but also about customized services and trust-building. From robust loan and deposit growth to premium valuation and credit management, the company is among the safest investments.
East West Bancorp, Inc. (NASDAQ:EWBC), headquartered in Pasadena, California, is a bank holding company for East West Bank, offering a range of personal and commercial banking services. Incorporated in 1973, the company operates through three segments: Consumer and Business Banking, Commercial Banking, and Other.
8. Yum China Holdings, Inc. (NYSE:YUMC)
Number of Hedge Fund Holdings: 30
In the first quarter, Ellsworth Advisors LLC acquired a new stake in Yum China Holdings, Inc. (NYSE:YUMC) through the purchase of 99,599 shares of the company’s stock. According to the filing with the SEC, the investment advisor owns 1.4% of the company, which translates to an investment of approximately $5,185,000.
Most analysts highlight the strategies adopted by Yum China Holdings, Inc. (NYSE:YUMC) in making their bullish stance. A fair point indeed, all thanks to the value-led strategy. One of the clear indicators is the sequential improvement in traffic, implying that its efforts are being appreciated by the customers.
In a noteworthy shift, the company’s same-store sales growth (SSSG) flipped to positive in 2Q25, up 1% yoy, and while this may sound insignificant, it’s actually quite meaningful as it marks the company’s tenth consecutive quarter of same-store transaction growth. In the years ahead, we can expect attractive monetary gains from the giant’s fresh formats, such as KCOFFEE and Pizza Hut WOW. Together, these factors position Yum China Holdings, Inc. (NYSE:YUMC) for a bright future.
Yum China Holdings, Inc. (NYSE:YUMC) is a Chinese company that owns, operates, and franchises restaurants. With two main segments: KFC and Pizza Hut, the company is committed to making every life taste beautiful.
7. Viper Energy, Inc. (NASDAQ:VNOM)
Number of Hedge Fund Holdings: 41
William Janela, an analyst at Mizuho, reiterated an ‘Outperform’ rating on Viper Energy, Inc. (NASDAQ:VNOM), while reducing the price target from $55.00 to $51.00, implying a potential upside of nearly 34.7%.
The research firm anticipates a rise in gas prices in the next 12 months, and this is what positions Viper Energy, Inc. (NASDAQ:VNOM) for long-term growth. While oil stocks reflect current strip prices, gas stocks are trading at a 10% to 15% discount based on implied commodity prices. To say the least, the firm is bullish on large-cap gas exploration and production names and maintains a “selective exposure” to core oil companies.
The company’s $4.1 billion acquisition of Sitio Royalties provides synergies across the Permian, along with a boost to oil and gas production. The reason why most investors are attracted to take a position in oil and gas production with limited exposure to operational downside risks makes a compelling case for Viper Energy, Inc. (NASDAQ:VNOM).
Viper Energy, Inc. (NASDAQ:VNOM) is a Texas-based company that specializes in oil and natural gas properties in North America. Founded in 2013, the company is committed to maximizing long-term returns.
6. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Hedge Fund Holdings: 44
According to a MarketBeat report, twelve firms have assigned a rating of “Moderate Buy” to Canadian Natural Resources Limited (NYSE:CNQ). While three analysts have issued a hold rating, eight recommended buying the stock, and the last one has a “Strong Buy” advice.
This year, Canadian Natural Resources Limited (NYSE:CNQ) is focusing on investments in new production and exploration capacity, particularly in North America, a location where the company made a key acquisition last year. We have witnessed the company’s success in expanding its production volume over time, all of which is due to the company’s targeted takeovers.
But what investors like most is the company’s ability to pay dividends. Canadian Natural Resources Limited (NYSE:CNQ) is considered a dividend play with its 5.40% forward dividend yield and a 20-year long history of steady dividend growth.
Canadian Natural Resources Limited (NYSE:CNQ), incorporated in 1973, is a company that specializes in crude oil, natural gas, and natural gas liquids (NGLs). This Canadian company is focused on shareholder value through responsible and effective resource provision.
5. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holdings: 45
Park Avenue Securities LLC acquired a new stake in Novo Nordisk A/S (NYSE:NVO) through the purchase of 85,970 shares of the company’s stock during the second quarter. According to the recent filing with the SEC, the firm’s investment in the company amounts to $5,934,000.
Despite downgrades in outlook discouraging investors from acquiring the stock, there’s much to like about Novo Nordisk A/S (NYSE:NVO). The company has shown encouraging signs, particularly in its treatments, which clearly indicate the giant’s leading position in weight management treatments.
What Novo Nordisk A/S (NYSE:NVO) has is time to turn things in its favor. The company’s restructuring exercise sounds like a solid plan as it could improve efficiency and minimize costs. Recently, the company’s GLP-1 drugs entered the market, achieving an 18% sales growth in H1 2025. We look forward to the prospects of acquisitions, as Novo Nordisk may plan to acquire some of the many smaller pharmaceutical companies to facilitate its growth.
Novo Nordisk A/S (NYSE:NVO), headquartered in Bagsvaerd, Denmark, is a company that offers pharmaceutical products. With two main segments: Diabetes and Obesity Care, and Rare Disease, the company is committed to addressing serious chronic diseases.
4. Unum Group (NYSE:UNM)
Number of Hedge Fund Holdings: 48
Alex Scott, an analyst at Barclays, reaffirmed a ‘Buy’ rating on Unum Group (NYSE:UNM) with a price target of $92, implying a potential surge of nearly 21.2%. This comes after the company’s participation in the Barclays 23rd Annual Global Financial Services Conference, held on September 9, 2025.
During the presentation, Unum Group (NYSE:UNM) highlighted its strategic priorities while covering both opportunities and challenges. The company is focused on delivering mid-single-digit premium growth, syncing perfectly with its business model. We already know that the life and disability insurance company is making huge investments in technology, especially in HR Connect.
What sets Unum Group (NYSE:UNM) apart from its peers is its strong execution on EPS growth. On top of that, the company delivers healthy shareholder returns and a solid balance sheet. Despite a recent earnings miss, the company’s pricing power, emphasis on workplace benefits, and de-risking of legacy LTC business make it a compelling play.
Unum Group (NYSE:UNM), headquartered in Chattanooga, Tennessee, is a financial protection benefit solutions provider in the United States, the United Kingdom, and Poland. Founded in 1848, the company is dedicated to safeguarding people financially.
3. EOG Resources, Inc. (NYSE:EOG)
Number of Hedge Fund Holdings: 53
According to the latest disclosure with the SEC, IFM Investors Pty Ltd raised its position in EOG Resources, Inc. (NYSE:EOG) by 2.1% during the second quarter. Following the purchase of 2,382 shares, the institutional investor owns 115,513 shares of the company’s stock, valued at $13,817,000.
One of the takeaways is the company’s joint shale project with Abu Dhabi National Oil Company, which is right on track. This will enable EOG Resources, Inc. (NYSE:EOG) to develop shale resources in the UAE shale oil play, as well as the shale gas play in Bahrain, a location where it has already entered into an agreement with the national energy firm BAPCO.
As stated by the CEO, Ezra Yacob,
“We have captured abundant resource at both plays, and we’ve partnered with companies that we have very, very strong stakeholder alignment with.”
The company’s impressive product mix of natural gas assets, all of which is due to the Encino integration, makes it quite a valuable investment. This, together with the record natural gas demand from both datacenters and LNG exports, makes EOG Resources, Inc. (NYSE:EOG) one of the key players in the industry.
EOG Resources, Inc. (NYSE:EOG) is a Texas-based company that specializes in crude oil, natural gas liquids, and natural gas in producing basins. Founded in 1985, the energy provider is dedicated to creating sustainable value.
2. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holdings: 54
According to the recent disclosure with the SEC, Exchange Traded Concepts LLC raised its position in JD.com, Inc. (NASDAQ:JD) by 42.6% during the second quarter. After the purchase of 34,585 shares, the investment advisor now owns 115,817 shares of the company’s stock, valued at nearly $3,780,000.
Recently, China adopted accommodative policies that have done nothing but shape the company’s success story. Their “Made in China 2025” strategic plan includes both the aim of enhancing the domestic content of core materials to 70% and improving the quality of and the trust in local brands. Sure enough, JD.com, Inc. (NASDAQ:JD) is set to benefit from anything that would enhance the country’s economic well-being.
The company’s overall outlook is backed by strong financials, improving numbers, and a healthy valuation. Despite short-term ups and downs, the giant’s long-term potential remains significant, particularly if the international expansion proceeds as planned. Perhaps, JD.com, Inc. (NASDAQ:JD) can be called a “financial pillar in a rebounding market”.
JD.com, Inc. (NASDAQ:JD) is a Chinese company that provides supply chain-based technology and services. Founded in 2006, the company operates through three segments: JD Retail, JD Logistics, and New Businesses.
1. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holdings: 72
In the second quarter, Polianta Ltd acquired a new position in ConocoPhillips (NYSE:COP) through the purchase of 14,500 shares of the company’s stock. According to the latest disclosure with the SEC, the investment of the firm in the company is around $1,301,000.
What’s truly impressive is that ConocoPhillips (NYSE:COP) is investing heavily in high-potential regions, with billions in expected synergies and $5.0B in targeted asset dispositions. Additionally, the company plans to inject fresh capital into regions like the Permian.
Despite recent underperformance, ConocoPhillips (NYSE:COP) boasts a compelling balance sheet, ongoing buyback programs, and key projects in the works. An early sign of the company’s bright future is its integration of Marathon Oil, which is way ahead of schedule. This means that the company could realize $1 billion in cost synergies and enhance its production even with limited drilling.
ConocoPhillips (NYSE:COP), headquartered in Houston, Texas, is a company that focuses on crude oil, liquefied natural gas (LNG), and natural gas liquids, among others. Founded in 191, the company operates in six segments.
While we acknowledge the potential of COP 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 COP and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
