In this article, we explore the 12 Best Widow and Orphan Stocks to Buy According to Analysts.
According to Reuters, U.S. stock index futures increased on September 29. The Dow E-minis were up 202 points (0.43%), the S&P 500 E-minis were up 36.75 points (0.55%), and the Nasdaq 100 E-minis were up 162.5 points (0.66%). These gains occurred despite weekly losses on key indexes, as expectations of additional rate reductions by the Federal Reserve were maintained by in-line inflation data. The future could become more uncertain if important economic statistics are delayed due to a possible U.S. government shutdown on October 1, according to Reuters. The yield on the 10-year U.S. Treasury rose to 4.181% in August due to higher-than-expected consumer expenditure, while gold remained stable at $3,766.25 an ounce.
The “widow and orphan” stocks, which are established, dividend-paying companies in industries like consumer staples, utilities, and healthcare, are once again in the spotlight due to this environment of conflicting economic signals and policy risk. Because of their consistent profits and dependable dividends, conservative investors have historically preferred these shares. However, defensive areas have not kept pace with this year’s rally.
As Reuters reported, the Consumer Staples Select Sector SPDR Fund (XLP), which tracks major staples names, is up 4.02% year-to-date as of September 27, according to Yahoo Finance, and the medtech index is up only 2.3% in 2025 compared to a 12.5% gain in the broader S&P 500. According to economists, these conservative companies could once again act as a buffer for investors who are uneasy about volatility and changing monetary policy.
Methodology
To curate our list of the 12 Best Widow and Orphan Stocks to Buy According to Analysts, we used the Finviz screener to compile a list of large and mega-cap stocks with outstanding dividend profiles. We selected companies from this dataset that had solid foundations and a history of surviving difficult macroeconomic times. Hedge funds are also big fans of these equities. We then compared the analyst upside and the FWD P/E. Last but not least, we arranged the stocks according to the analyst’s upside potential.
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. Biogen Inc. (NASDAQ:BIIB)
Number of Hedge Fund Holders: 55
Forward P/E: 8.96
Upside Potential: 33.69%
With significant upside potential, Biogen Inc. (NASDAQ:BIIB) secures a spot on our list of the 12 Best Widow and Orphan Stocks to Buy According to Analysts.
Jefferies began covering Biogen Inc. (NASDAQ:BIIB) on September 26 with a Buy rating and a price target of $190. The firm argued that despite the company’s significant strategic and regulatory advancements, investor expectations remain abnormally low.
However, following a series of developments, including Biogen Inc. (NASDAQ:BIIB)’s FDA Complete Response Letter for its high-dose nusinersen regimen for spinal muscular atrophy, its $85 million acquisition of Alcyone Therapeutics to expand its neurological device pipeline, and the European Commission’s approval of ZURZUVAE as the first oral postpartum depression therapy, Jefferies took a positive stance.
These events were cited as proof of the base business’s “continued resiliency” and highlighted an undervalued pipeline. The firm also mentioned the potential for Biogen Inc. (NASDAQ:BIIB)’s late-stage studies in depression and lupus, as well as the acceleration of sales potential for its Alzheimer’s medication Leqembi through a planned at-home subcutaneous formulation.
Globally, Biogen Inc. (NASDAQ:BIIB) discovers, develops, manufactures, and distributes treatments for neurological and neurodegenerative illnesses. It is one of the Best Widow and Orphan Stocks.
11. lululemon athletica inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 55
Forward P/E: 14.23
Upside Potential: 33.93%
Lululemon Athletica Inc. (NASDAQ:LULU) is one of the 12 Best Widow and Orphan Stocks to Buy According to Analysts.
On September 25, Needham downgraded Lululemon Athletica Inc. (NASDAQ:LULU) to Hold, warning that growing challenges were offsetting its strong brand and 59.1% gross margins. After remaining unchanged in Q4 2024, North American comparable sales dropped 1% and 3% in the first two quarters of 2025, respectively, due to declining demand and unexpected tariff exposure on U.S. e-commerce orders.
In contrast to Wall Street’s flat growth prediction, Needham now projects mid-single-digit earnings declines for FY2026, citing a more competitive environment from non-athletic apparel companies such as Alo, Vuori, Fabletics, and Athleta. Younger consumers have also shifted away from Lululemon Athletica Inc. (NASDAQ:LULU)’s primary leggings category due to the denim trend, while the company’s casual collection has started to weaken. The brokerage stated that after years of rapid expansion, the climate remains “too challenging” for a lasting recovery, though new product releases might provide some support in 2025.
Under the Lululemon brand, Lululemon Athletica Inc. (NASDAQ:LULU) designs, markets, and sells technical sportswear, accessories, and footwear for men and women in North America and beyond. It is one of the Best Widow and Orphan Stocks.
10. Sanofi (NASDAQ:SNY)
Number of Hedge Fund Holders: 24
Forward P/E: 9.39
Upside Potential: 35.05%
With significant upside potential, Sanofi (NASDAQ:SNY) secures a spot on our list of the 12 Best Widow and Orphan Stocks to Buy According to Analysts.
On September 29, Berenberg reaffirmed its Buy rating on Sanofi (NASDAQ:SNY) with a price target of EUR110.00, citing better returns from the company’s medication pipeline. Analysts’ estimates for the $111.7 billion market-cap pharmaceutical company range between $53 and $69, while the stock is currently trading at $45.65.
According to Berenberg, Sanofi (NASDAQ:SNY)’s 2020 pipeline cohort now yields a 10% return, but if peak sales of key drugs like amlitelimab and frexalimab double, or if duvakitug enters Phase 3, its 2025 cohort could surpass its cost of capital.
Separately, on September 26, Sanofi (NASDAQ:SNY) announced it would expand an earlier program for the uninsured by capping the cost of any insulin product at $35 per month for U.S. patients with a valid prescription, regardless of insurance status. These actions highlight Sanofi’s pipeline momentum as well as its pricing strategy, which aims to increase patient access in the United States.
Sanofi (NASDAQ:SNY) researches, develops, manufactures, and markets pharmaceutical solutions globally, providing therapies in immunology, neurology, oncology, rare diseases, vaccines, and other fields. It is one of the Best Widow and Orphan Stocks.
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