In this article, we will look at the 13 Best Long Term Low Volatility Stocks to Buy Now.
Could a Rate Cut by the Fed Be a Mistake?
On July 15, James Bianco, Bianco Research president, appeared on CNBC’s ‘Closing Bell Overtime’ to discuss the latest inflation read and why he believes that a rate cut by the Federal Reserve could be a mistake.
Inflation accelerated in June, with the latest data showing that consumer prices rose 2.4% year-over-year. Shedding light on these inflation statistics, Bianco noted that there were signs of tariffs present, with certain items, such as toys, apparel, and furnishings, increasing more because they are typically associated with imports from China.
READ ALSO: 13 Cheap Stocks Under $50 to Buy Now and 12 Oversold NASDAQ Stocks to Buy Now.
However, he clarified that these trends were offset by other domains that had a seasoned adjustment down. Bianco thus stated that while the numbers show the beginning of moving up in tariffs, it wasn’t that the overall number got pushed, and that might be coming in the months ahead.
Talking about why he thinks the Fed cutting rates could be a bad idea, Bianco reasoned that the ten-year yield rose straight up when the Fed cut 100 basis points last year and the market rejected it. That shows that if the market doesn’t think cutting rates is the right idea, rates tend to rise.
According to him, the risk right now is that if the Fed does what President Trump wants, which is a 300-basis-point cut, it could lead to potential inflation if the market thinks the economy is doing well and does not require additional stimulus. This may also result in a negative reaction from the bond market, according to Bianco.
With these trends in view, let’s look at the 13 best long-term low volatility stocks to buy now.
A senior manager studying a market index alongside a team of young stock market analysts.
Our Methodology
We used Finviz to compile a list of top stocks with a 5-year revenue growth above 10% and beta below 1. We then selected the top 13 stocks with the highest number of hedge fund holders as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on July 17.
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).
13 Best Long Term Low Volatility Stocks to Buy Now
13. T-Mobile US, Inc. (NASDAQ:TMUS)
5-Year Revenue Growth: 12.93%
Beta: 0.63
Number of Hedge Fund Holders: 75
T-Mobile US, Inc. (NASDAQ:TMUS) is one of the best long term low volatility stocks to buy now. On July 16, Morgan Stanley raised the firm’s price target on T-Mobile US, Inc. (NASDAQ:TMUS) to $280 from $265, keeping an Overweight rating on the shares.
The firm told investors in a research note that it raised the estimates for free cash flow for US operators after the newly signed tax law. It further stated that capacity is likely to be allocated to a mix of fiber builds, buybacks, and/or other M&A.
Morgan Stanley also added that while competition is intense, it is not clear whether it is intensifying.
T-Mobile US, Inc. (NASDAQ:TMUS) provides wireless communications services under the T-Mobile and MetroPCS brands. The company offers prepaid and postpaid wireless messaging, voice, and data services, along with wholesale wireless services.
12. Palo Alto Networks, Inc. (NASDAQ:PANW)
5-Year Revenue Growth: 22.15%
Beta: 0.97
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the best long term low volatility stocks to buy now. On July 16, William Blair analyst Jonathan Ho maintained a Buy rating on Palo Alto Networks, Inc. (NASDAQ:PANW) without a price target.
Palo Alto Networks, Inc. (NASDAQ:PANW) reported a 15% year-over-year growth in its total revenue for fiscal Q3 2025 to $2.3 billion, compared to total revenue of $2.0 billion in the same quarter last year. GAAP net income for the quarter was $0.37 per diluted share, compared to $0.39 per diluted share in fiscal Q3 2024.
The company also experienced a rise in non-GAAP net income, going from $0.5 billion, or $0.66 per diluted share in fiscal Q3 2024, to $0.6 billion, or $0.80 per diluted share in fiscal Q3 2025.
Palo Alto Networks, Inc. (NASDAQ:PANW) provides network security solutions to service providers, enterprises, and government entities. Its operations are divided into the following geographical segments: the United States, Israel, and Other Countries.
11. RTX Corporation (NYSE:RTX)
5-Year Revenue Growth: 12.30%
Beta: 0.62
Number of Hedge Fund Holders: 79
RTX Corporation (NYSE:RTX) is one of the best long term low volatility stocks to buy now. On July 17, Morgan Stanley raised the firm’s price target on RTX Corporation (NYSE:RTX) to $165 from $135, keeping an Overweight rating on the shares.
The firm told investors that since aerospace stocks are trading at record multiples, the Aerospace sector is undergoing multiple expansion, and that points towards sector resilience. It anticipates industry dynamics to “largely remain on trend.”
Morgan Stanley also added in a Q2 preview for the sector that the Aero supply chain is continually undergoing improvements, with air traffic demand persisting and Boeing output holding momentum. These factors, according to the firm, continue to favor an optimistic outlook on aerospace stocks with a mix of aftermarket and original equipment exposure.
RTX Corporation (NYSE:RTX) is an aerospace and defense company that provides aerospace and defense services and systems to military, commercial, and government customers. The company operates through the following segments: Collins Aerospace Systems (Collins), Pratt and Whitney, Raytheon Intelligence and Space (RIS), and Raytheon Missiles and Defense (RMD).
10. AbbVie Inc. (NYSE:ABBV)
5-Year Revenue Growth: 10.99%
Beta: 0.49
Number of Hedge Fund Holders: 86
AbbVie Inc. (NYSE:ABBV) is one of the best long term low volatility stocks to buy now. On July 10, Morgan Stanley analyst Terrence Flynn reiterated a Buy rating on AbbVie Inc. (NYSE:ABBV) and set a price target of $250.00.
AbbVie Inc. (NYSE:ABBV) reported positive fiscal Q1 2025 results that support the optimistic outlook, with adjusted diluted EPS reaching $2.46, experiencing a 6.5% growth.
The company also reported $13.343 billion in net revenue for the first quarter of 2025, reflecting an 8.4% growth on a reported basis or 9.8% on an operational basis.
AbbVie Inc. (NYSE:ABBV) is a research-based pharmaceutical company that develops and sells products to treat chronic diseases in oncology, gastroenterology, rheumatology, dermatology, virology, and various other serious health conditions.
9. PDD Holdings Inc. (NASDAQ:PDD)
5-Year Revenue Growth: 65.80%
Beta: 0.40
Number of Hedge Fund Holders: 87
PDD Holdings Inc. (NASDAQ:PDD) is one of the best long term low volatility stocks to buy now. On May 30, China Galaxy International analyst Lei Yang downgraded the price target on PDD Holdings Inc. (NASDAQ:PDD) from $164 to $112, keeping a Hold rating on the shares.
Since the company is China-based, it is experiencing uncertainties due to Trump’s tariffs. Reuters reported that the global discount e-commerce platform Temu, which is owned and operated by PDD Holdings Inc. (NASDAQ:PDD), underwent a whopping 48% drop in its daily US users in May compared to March.
As a result, Temu’s advertising spend in the country also dropped considerably. Morgan Stanley equity analyst Simeon Gutman said the following about the situation in a May note:
“While the tariff environment is uncertain, if the status quo remains for an extended period, we believe Temu’s competitive threat will continue to weaken.”
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations.
The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu. Temu now operates in more than 50 countries worldwide.
8. The Progressive Corporation (NYSE:PGR)
5-Year Revenue Growth: 15.23%
Beta: 0.40
Number of Hedge Fund Holders: 91
The Progressive Corporation (NYSE:PGR) is one of the best long term low volatility stocks to buy now. In a report released on July 14, Wells Fargo analyst Elyse Greenspan reiterated a Buy rating on The Progressive Corporation (NYSE:PGR), retaining a price target of $333.
The analyst supported the optimistic rating with the company’s growth potential and strong financial performance, noting that The Progressive Corporation (NYSE:PGR) exhibited stronger-than-anticipated growth in policies in force (PIF) while maintaining robust margins.
According to the analyst, these factors are supported by favorable reserve development and suggest the company’s potential to continue capturing market share.
Greenspan also reasoned that while share price experienced some underperformance recently, The Progressive Corporation (NYSE:PGR) is attractively valued and is trading at a reasonable multiple of the 2026 EPS estimate.
The Progressive Corporation (NYSE:PGR) is an insurance holding company that provides residential property insurance, personal and commercial auto insurance, and other specialty property-casualty insurance and related services. The company operates through the Personal Lines, Commercial Lines, and Property segments.
7. Costco Wholesale Corporation (NASDAQ:COST)
5-Year Revenue Growth: 10.81%
Beta: 0.99
Number of Hedge Fund Holders: 93
Costco Wholesale Corporation (NASDAQ:COST) is one of the best long term low volatility stocks to buy now. In a report released on July 17, Rupesh Parikh from Oppenheimer maintained a Buy rating on Costco Wholesale Corporation (NASDAQ:COST) and set a price target of $1,130.00.
Costco Wholesale Corporation (NASDAQ:COST) reported positive sales results for the retail month of June, with net sales experiencing an 8% growth to $26.44 billion for the five weeks ended July 6. Net sales for the first 44 weeks of the year reached $227.46 billion, reflecting an 8% hike from $210.55 billion last year.
Costco Wholesale Corporation (NASDAQ:COST) operates membership-only big box warehouse club stores and is one of the most popular department stores in the US. It offers its customers elaborate offerings, including food, beverages, groceries, and more.
6. Thermo Fisher Scientific Inc. (NYSE:TMO)
5-Year Revenue Growth: 10.84%
Beta: 0.78
Number of Hedge Fund Holders: 101
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the best long term low volatility stocks to buy now. On July 16, Thermo Fisher Scientific Inc. (NYSE:TMO) announced plans to strategically expand its partnership with Sanofi to support additional drug product manufacturing in the United States.
As part of the partnership, Thermo Fisher Scientific Inc. (NYSE:TMO) would acquire Sanofi’s manufacturing site in Ridgefield, New Jersey, and would continue to produce and develop a portfolio of therapies for Sanofi.
Thermo Fisher Scientific Inc. (NYSE:TMO) also plans to expand use of the site to satisfy the rising demand from biotech and pharma customers for US manufacturing capacity. The Ridgefield site will join Thermo Fisher Scientific Inc. (NYSE:TMO) after the completion of the transaction, and comprises a state-of-the-art sterile fill-finish and packaging facility with over 200 employees.
Thermo Fisher Scientific Inc. (NYSE:TMO) provides analytical instruments, reagents, equipment, software, and other services for analysis, research, diagnostics, and discovery. It operates through the Analytical Instruments, Life Sciences Solutions, Laboratory Products and Services, and Specialty Diagnostics segments.
5. The Charles Schwab Corporation (NYSE:SCHW)
5-Year Revenue Growth: 14.03%
Beta: 0.93
Number of Hedge Fund Holders: 102
The Charles Schwab Corporation (NYSE:SCHW) is one of the best long term low volatility stocks to buy now. On July 15, Morgan Stanley raised the firm’s price target on The Charles Schwab Corporation (NYSE:SCHW) to $117 from $83 while keeping an Overweight rating on the shares.
The firm told investors that it has become increasingly selective as the market goes into the Q2 earnings season. It also added that it still sees scope for interest rates, inflation, and tariffs to support rates and credit volumes.
The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company that engages in securities brokerage, wealth management, custody, asset management, and financial advisory services. Its operations are divided into Advisor Services and Investor Services segments.
4. ServiceNow, Inc. (NYSE:NOW)
5-Year Revenue Growth: 25.27%
Beta: 0.96
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the best long term low volatility stocks to buy now. On July 16, TD Cowen analyst Derrick Wood maintained a Buy rating on ServiceNow, Inc. (NYSE:NOW), keeping the price target at $1,150.00.
The analyst reasoned that ServiceNow, Inc. (NYSE:NOW) is suitably positioned for future growth and has exhibited strong performance in the enterprise segment, especially with its AI-related projects.
The firm expects favorable foreign exchange trends and the company’s traction with its GenAI product cycle to be additional growth drivers for its financial performance.
The analyst also stated that ServiceNow, Inc. (NYSE:NOW) has a strong track record with a significant beat in fiscal Q1 results and has set a lower guidance bar, which may result in a beat and raise the scenario in the upcoming quarters.
ServiceNow, Inc. (NYSE:NOW) has increased sales hiring and boasts a strong pipeline, which, according to the analyst, strategically positions it for the second half of the year and sets it up for continued growth.
ServiceNow, Inc. (NYSE:NOW) offers an AI platform for business transformation, boosting productivity and maximizing business outcomes. Its intelligent platform, Now Platform, provides end-to-end workflow automation for digital businesses. Now Platform functions as a cloud-based solution embedded with AI and ML.
3. Eli Lilly and Company (NYSE:LLY)
5-Year Revenue Growth: 16.24%
Beta: 0.39
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the best long term low volatility stocks to buy now. In a report released on July 8, Courtney Breen from Bernstein maintained a Buy rating on Eli Lilly and Company (NYSE:LLY) with a price target of $1,100.00.
On July 9, Eli Lilly and Company (NYSE:LLY) reported that the US Food and Drug Administration (FDA) approved a label update with a new recommended titration dosing schedule for Kisunla. Kisunla is the company’s once-monthly amyloid-targeting therapy for adults with early symptomatic Alzheimer’s disease (AD).
The TRAILBLAZER-ALZ 6 study showed that the modified titration schedule considerably reduced the occurrence of “amyloid-related imaging abnormalities with edema/effusion (ARIA-E) versus the original dosing schedule at 24 and 52 weeks, while still achieving similar levels of amyloid plaque removal and P-tau217 reduction”.
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies.
2. Alibaba Group Holding Limited (NYSE:BABA)
5-Year Revenue Growth: 14.35%
Beta: 0.21
Number of Hedge Fund Holders: 125
Alibaba Group Holding Limited (NYSE:BABA) is one of the best long term low volatility stocks to buy now. Jefferies reiterated optimistic sentiments for Alibaba Group Holding Limited (NYSE:BABA) in its July note, stating that it is one of the top names to watch in China’s AI space as cloud spending continues and improvements in chip supply materialize.
The firm raised Alibaba Group Holding Limited’s (NYSE:BABA) June-quarter forecast for revenue growth for the Cloud Intelligent Group to 23% from the prior 20%.
The upgrade comes as the company continually posts solid results in AI-related services, with cloud revenue growing 18% year-over-year in its fiscal Q4 2025 earnings report. AI-related product revenue for the quarter marked the seventh consecutive quarter of triple-digit growth.
Jefferies added that Alibaba Group Holding Limited’s (NYSE:BABA) steady capital spending is a key strength for the company. The company announced a $53 billion plan earlier this year to expand its AI and cloud business over the coming three years.
The firm also anticipates Alibaba Group Holding Limited’s (NYSE:BABA) advertising and merchant service revenue to rise by around 10.5% year-over-year, slightly above its earlier estimates, due to the support of higher service fees charged to sellers and improved monetization tools.
Alibaba Group Holding Limited (NYSE:BABA) manages and provides technology infrastructure and marketing platforms. It operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others segments.
1. UnitedHealth Group Incorporated (NYSE:UNH)
5-Year Revenue Growth: 10.74%
Beta: 0.45
Number of Hedge Fund Holders: 139
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best long term low volatility stocks to buy now. On July 16, Truist lowered the firm’s price target on UnitedHealth Group Incorporated (NYSE:UNH) to $345 from $360 while keeping a Buy rating on the shares.
The rating update came as part of a broader research note previewing the fiscal Q2 2025 results for the Healthcare Services sector. The firm told investors in a research note that the quarter is expected to exhibit an ongoing mixed, sector-dependent backdrop across its coverage universe, focusing on selectivity and utilization-leveraged names that are best positioned.
Truist acknowledged that Managed Care is continuing to face challenges, but it is remaining bullish on the core demand drivers for the industry. The firm also stated that it sees the Reconciliation Bill as having provided heightened clarity around the regulatory framework.
UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments, which have solid operations.
While we acknowledge the potential of UNH 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 UNH and that has 100x upside potential, check out our report about this cheapest AI stock.
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