In this article, we discuss the 13 Safest Stocks to Invest in Now.
“Safe Stocks” are an essential component of long-term portfolios since investors frequently look for stability in erratic markets. As investors considered the possible effects of a U.S. government shutdown and a dismal private labor report, Reuters reported on October 2 that while gold was trading close to record levels, global markets were edging higher. Unexpected job losses in September, as shown by the ADP figures, fueled hopes that the Fed would lower interest rates by two quarter points before the year ended.
Moreover, the dollar has been under pressure and demand for safe-haven assets has increased due to concern around delayed economic data and institutional credibility, even as U.S. stocks have held up. Furthermore, gold has reached an all-time high of $3,895. Investors are taking defensive stances in response, which supports the idea that stable, dividend-paying equities may stabilize erratic markets.
Conservative portfolios continue to rely heavily on safe equities, which are usually companies with stable balance sheets, steady profitability and little volatility. These companies frequently succeed not simply because they carry less risk but also because their stability is rewarded over time, according to research from The-Volatility Anomaly. According to Dan Lefkovitz of Morningstar, low-volatility equities have a history of mitigating falls, which makes them especially appealing during periods of uncertainty. Reliable dividend payers continue to offer the most consistent combination of income and long-term growth, despite CNBC reporting on increased interest in alternatives like gold and bitcoin. Therefore, due to this, safe stocks are a sensible option for investors who want to maintain consistent returns while navigating policy uncertainty and fluctuating rate expectations.
With this backdrop, let’s move on to our list of the 13 Safest Stocks to Invest in Now.
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Methodology
To curate our list of the 13 Safest Stocks to Invest in Now, we used the Finviz screener to extract a list of large-cap stocks with a beta of less than one and a P/E ratio of less than 25. These stocks also have an ROE of more than 10% and a debt-to-equity ratio of less than 0.6. So, based on the data taken from Insider Monkey’s Q2 2025 database, the equities are arranged in ascending order by the number of hedge funds that own them.
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. Diamondback Energy, Inc. (NASDAQ:FANG)
Return On Equity: 13.78%
Number of Hedge Fund Holders: 46
Diamondback Energy, Inc. (NASDAQ:FANG) is one of the 13 Safest Stocks to Invest in Now, supported by hedge fund interest and significant return on equity.
The CEO of Diamondback Energy, Inc. (NASDAQ:FANG) issued a warning on October 1 that if oil prices stay close to $60 per barrel, the growth of U.S. crude production will stagnate. Moreover, growth at lower levels will be challenging due to the scarcity of Tier 1 drilling locations.
While Diamondback Energy, Inc. (NASDAQ:FANG) reduced its 2025 capital investment by $500 million to $3.5 billion, U.S. crude futures were trading at about $61.50. The comments were made the day after Bernstein SoGen Group, after a non-deal roadshow with management, reiterated its Outperform rating and $192 price target on the company.
Furthermore, the investment firm emphasized Diamondback Energy, Inc. (NASDAQ:FANG)’s strong inventory life, disciplined balance sheet, and share repurchases, highlighting its position as the final large-cap single-basin shale producer.
The Permian Basin is home to the Texas-based oil and gas company Diamondback Energy, Inc. (NASDAQ:FANG). It is one of the Safest Stocks To Buy.
12. Baker Hughes Company (NASDAQ:BKR)
Return On Equity: 18.36%
Number of Hedge Fund Holders: 47
With significant hedge fund interest and return on equity, Baker Hughes Company (NASDAQ:BKR) secures a spot on our list of the 13 Safest Stocks to Invest in Now.
In a news release issued on October 1, Baker Hughes Company (NASDAQ:BKR) stated that it would provide liquefaction equipment for Sempra Infrastructure’s Port Arthur LNG Phase 2 project in Jefferson County, Texas. With a nameplate capacity of roughly 13 million tons annually, the company, which made $27.6 billion in revenue in the last 12 months, will supply two LNG trains with four Frame 7 gas turbines and eight centrifugal compressors. Moreover, two electric motor-driven compressors are also included in the scope, for booster service.
Furthermore, the contract extends Baker Hughes Company (NASDAQ:BKR)’s partnership with Bechtel Energy to enhance Gulf Coast LNG infrastructure, building on the company’s previous participation in Phase 1. With the technology built to maintain high availability and lower emissions, the project is anticipated to satisfy the growing demand for LNG worldwide while improving operating flexibility and efficiency.
The U.S.-based energy technology company, Baker Hughes Company (NASDAQ:BKR), supplies industrial gas and oil sectors around the globe. It is one of the Safest Stocks To Buy.
11. EOG Resources, Inc. (NYSE:EOG)
Return On Equity: 19.63%
Number of Hedge Fund Holders: 53
EOG Resources, Inc. (NYSE:EOG) is one of the 13 Safest Stocks to Invest in Now, supported by hedge fund interest and significant return on equity.
Mizuho reiterated its neutral rating and $133.00 price target on EOG Resources, Inc. (NYSE:EOG) on October 1 in advance of the company’s Q3 2025 results announcement on November 6.
While production volumes are expected to meet broader market estimates, the company anticipates that EOG Resources, Inc. (NYSE:EOG) will outperform the consensus by about 4% on EBITDAX and cash flow per share. According to Mizuho, there may be some upside potential because consensus projections for oil prices are lower than the current market reality.
Furthermore, investors should pay particular attention to the following: updates on the Utica/Encino integration, domestic and overseas exploration developments, cash returns for the second half of 2025, and capital spending projections for 2026. With sales of $5.48 billion and an adjusted EPS of $2.32 as opposed to the $2.23 anticipated, EOG Resources, Inc. (NYSE:EOG) recently surpassed Wall Street’s Q2 forecasts.
The energy company EOG Resources, Inc. (NYSE:EOG) is headquartered in Texas and focuses on producing natural gas, natural gas liquids, and crude oil. It is one of the Safest Stocks To Buy.
10. Deckers Outdoor Corporation (NYSE:DECK)
Return On Equity: 43.58%
Number of Hedge Fund Holders: 59
With significant hedge fund interest and return on equity, Deckers Outdoor Corporation (NYSE:DECK) secures a spot on our list of the 13 Safest Stocks to Invest in Now.
UBS retained its Buy rating and $158 price target for Deckers Outdoor Corporation (NYSE:DECK) on September 29, emphasizing the stock’s growth potential and undervaluation. With the help of the HOKA and UGG brands, the company anticipates that earnings per share will surpass expectations in the upcoming quarters.
Based on estimates by UBS, Deckers Outdoor Corporation (NYSE:DECK) can maintain modest double-digit sales growth, which may raise its price-to-earnings ratio from the current 15x to above 20x.
Moreover, experts point out that while global and wholesale strength can offer short-term benefits, the success of its direct-to-consumer division will determine long-term multiple expansion. Deckers Outdoor Corporation (NYSE:DECK)’s recent Q1 fiscal 2026 sales of $965 million, which were above Wall Street predictions by over $60 million and accompanied by an EPS that exceeded expectations by 21%, lend credence to the positive argument.
Through its subsidiaries, Deckers Outdoor Corporation (NYSE:DECK) makes and sells clothing, accessories, and footwear for performance and lifestyle activities all over the world. It is one of the Safest Stocks To Buy.
9. General Dynamics Corporation (NYSE:GD)
Return On Equity: 17.91%
Number of Hedge Fund Holders: 61
General Dynamics Corporation (NYSE:GD) is one of the 13 Safest Stocks to Invest in Now, supported by hedge fund interest and significant return on equity.
General Dynamics Corporation (NYSE:GD) was upgraded by Neutral to Buy by Seaport Global Securities on September 29. The company’s price target was raised from its previous level to $376. Budget discussions, according to Seaport, may momentarily hurt stock prices but offer a good starting point, along with increased tax breaks, perhaps boosting demand for business jets.
Furthermore, the update comes after General Dynamics Corporation (NYSE:GD) was awarded $698 million in U.S. Navy contracts recently, including a $42.5 million contract for submarine parts and a $642.3 million award for the building of Virginia-class submarines. As evidence of its continued strength in its defense backlog, General Dynamics Corporation (NYSE:GD) recently obtained a $13.4 million contract modification related to space defense systems.
Global aerospace and defense company General Dynamics Corporation (NYSE:GD) supplies government and private customers worldwide with mission-critical systems, information technology, shipbuilding, business aviation and combat vehicles. It is one of the Safest Stocks To Buy.
8. Lennar Corporation (NYSE:LEN)
Return On Equity: 10.77%
Number of Hedge Fund Holders: 62
With significant hedge fund interest and return on equity, Lennar Corporation (NYSE:LEN) secures a spot on our list of the 13 Safest Stocks to Invest in Now.
On September 30, Keefe, Bruyette & Woods reiterated its Market Perform rating and $125 for Lennar Corporation (NYSE:LEN). Citing anticipated delivery losses of 11% and 3.5%, the firm reduced its 2026 projection by 4% and its Q4 2025 EPS estimate by 18%. The changes were also influenced by reduced estimates for multifamily, other income, and financial services.
Moreover, due to the ongoing impact of affordability constraints and unstable economic conditions on housing demand, Lennar Corporation (NYSE:LEN) has lowered its full-year delivery guidance by 5-6%. The company’s anticipated return on equity of 12-13% is reflected in KBW’s $125 price target, which is equivalent to 1.7x current tangible book value as well as 1.65x tangible book value. Given the homebuilder’s limited growth expectations, analysts kept their Market Perform rating.
Throughout the United States, Lennar Corporation (NYSE:LEN) develops residential land, designs, constructs, and sells single-family and multi-family homes and oversees rental properties for luxury, first-time, and move-up customers. It is one of the Safest Stocks To Buy.
7. The Allstate Corporation (NYSE:ALL)
Return On Equity: 27.00%
Number of Hedge Fund Holders: 62
The Allstate Corporation (NYSE:ALL) is one of the 13 Safest Stocks to Invest in Now, supported by hedge fund interest and significant return on equity.
With a price target of $233, Evercore ISI downgraded The Allstate Corporation (NYSE:ALL) from Outperform to In Line on October 1. The investment firm noted restricted EPS upside of roughly 2.5% compared to over 4% earlier, citing a more balanced risk-reward profile as the primary cause for the downgrade.
Furthermore, the analysts now believe The Allstate Corporation (NYSE:ALL) is overearning in vehicle insurance, who also pointed out normalized margins in 2026-2027 and a smaller opportunity for estimate revisions.
Evercore cautioned against additional rerating given weaker earnings growth estimates, even if the stock is still cheap in comparison to historical values, Progressive, and equal-weight S&P. The Allstate Corporation (NYSE:ALL) recently disclosed August catastrophe losses of $213 million or $168 million after taxes.
Through agents, contract centers, and online platforms, The Allstate Corporation (NYSE:ALL) offers personal lines, commercial, residential, and car insurance products in the United States and Canada. It is one of the Safest Stocks To Buy.
6. Accenture Plc. (NYSE:ACN)
Return On Equity: 25.51%
Number of Hedge Fund Holders: 65
With significant hedge fund interest and return on equity, Accenture Plc. (NYSE:ACN) secures a spot on our list of the 13 Safest Stocks to Invest in Now.
On September 30, 2025, Jefferies reduced its price target for Accenture Plc. (NYSE:ACN) from $260 to $250 while keeping a Hold rating. The firm emphasized Accenture Plc. (NYSE:ACN)’s continuing reorganization as it allocates resources to artificial intelligence, a trend that is anticipated to continue in the near future.
Furthermore, Jefferies pointed out that investor sentiment on AI integration continues to be the primary driver of the stock, even if fiscal 2026 guidance was in line with expectations. Although the bank sees no upside to current guidance, it increased its estimate of fiscal 2026 adjusted EPS to $13.83, up $0.35 from earlier projections.
The UK-based insurtech company Rehuman has received a strategic investment from Accenture Plc. (NYSE:ACN), which aims to improve client engagement through data-driven, AI-powered solutions. Collectively, these advancements highlight Accenture Plc. (NYSE:ACN)’s AI-focused transition’s prospects as well as its obstacles.
Accenture Plc. (NYSE:ACN) is a multinational professional services company that helps companies scale and modernize with digital, cloud, and artificial intelligence solutions by offering strategy, technology, and consulting services. It is one of the Safest Stocks To Buy.
5. Exxon Mobil Corporation (NYSE:XOM)
Return On Equity: 11.83%
Number of Hedge Fund Holders: 88
Exxon Mobil Corporation (NYSE:XOM) is one of the 13 Safest Stocks to Invest in Now, supported by hedge fund interest and significant return on equity.
Reuters reported that Exxon Mobil Corporation (NYSE:XOM) has recently announced that it would cut 10% of its Singaporean personnel by the end of 2027. The action is a part of a larger restructuring that will result in 2,000 job losses worldwide, mostly in Canada and the EU, impacting roughly 3% to 4% of the Exxon Mobil Corporation (NYSE:XOM)’s staff.
Ultimately, the layoffs may affect about 500 jobs at Exxon Mobil Corporation (NYSE:XOM), which employs about 3,500 people in Singapore. Additionally, the company plans to move employees from its Harbour Front Offices to the newly expanded Jurong refinery.
Although final organizational design specifics are still being reviewed, Exxon Mobil Corporation (NYSE:XOM) indicated that the restructure intends to improve competitiveness and align operations with long-term growth ambitions. Notification of affected employees is anticipated by December.
Crude oil, natural gas, petroleum products, petrochemicals, and specialty goods are all produced, transported, and sold globally by Exxon Mobil Corporation (NYSE:XOM), a multinational energy company. It is one of the Safest Stocks To Buy.
4. The Progressive Corporation (NYSE:PGR)
Return On Equity: 37.29%
Number of Hedge Fund Holders: 99
With significant hedge fund interest and return on equity, The Progressive Corporation (NYSE:PGR) secures a spot on our list of the 13 Safest Stocks to Invest in Now.
Keefe, Bruyette & Woods raised its price target on The Progressive Corporation (NYSE:PGR) from $268 to $270 on September 18 while keeping its Market Perform rating. After Progressive’s August 2025 earnings beat, EPS projections were adjusted, and the updated estimates are now $18.15 for 2025, $15.40 for 2026, and $16.40 for 2027.
Moreover, analysts pointed to reduced catastrophe losses and increased net investment income as major motivators, which were somewhat counterbalanced by the slower premium growth and increased costs. Furthermore, along with an 11% increase in net premiums written and an 18% increase in net premiums earned, The Progressive Corporation (NYSE:PGR) reported a 30% year-over-year gain in net income in August, reaching $1.22 billion. Long-term fundamentals are still strong, but shares are also under pressure from moderate competition, rate hikes in the near term, which could lessen the company’s edge in policy growth.
The Progressive Corporation (NYSE:PGR) is a holding company for insurance that provides specialty property-casualty insurance services, personal and commercial vehicle insurance, and residential property insurance throughout the United States. It is one of the Safest Stocks To Buy.
3. Alibaba Group Holding (NYSE:BABA)
Return On Equity: 13.45%
Number of Hedge Fund Holders: 101
Alibaba Group Holding (NYSE:BABA) is one of the 13 Safest Stocks to Invest in Now, supported by hedge fund interest and significant return on equity.
Reiterating its Overweight rating, JPMorgan increased its price target for Alibaba Group Holding (NYSE:BABA) from $21.23 to $30.85 on October 2. The company highlighted management’s optimistic forecast on food delivery and speedy commerce, as well as better-than-expected cloud revenue growth in Q2 fiscal 2025.
Moreover, in light of growing confidence in general AI monetization, analysts raised adjusted EBITA projections for China’s commerce operations by 2% / 3% and upgraded fiscal 2027/2028 Alibaba Group Holding (NYSE:BABA) revenue estimates by 2% / 6%.
Furthermore, after the announcement, Hong Kong trading saw a 4% increase in shares. On the first day of China’s extended National Day holiday, Alibaba Group Holding (NYSE:BABA)’s Amap app broke the previous record with 360 million daily active users, according to Reuters. This highlights the company’s foray into lifestyle services and competition with Meituan. The milestone demonstrates BABA’s overarching plan to use AI-powered consumer platforms in addition to expanding its cloud and e-commerce companies.
Global e-commerce, cloud computing, digital media, and artificial intelligence services are the areas of expertise for Alibaba Group Holding (NYSE:BABA), a Chinese global technology company. It is one of the Safest Stocks To Buy.
2. Adobe Inc. (NASDAQ:ADBE)
Return On Equity: 52.87%
Number of Hedge Fund Holders: 104
With significant hedge fund interest and return on equity, Adobe Inc. (NASDAQ:ADBE) secures a spot on our list of the 13 Safest Stocks to Invest in Now.
According to a press release from the company, Adobe Inc. (NASDAQ:ADBE) released its Premiere video editing software for iPhone on September 30. This app gives mobile producers free access to high-quality editing tools. The software has direct connectivity for YouTube, TikTok, and Instagram, multi-track timeline editing, 4K HDR compatibility, and AI-powered audio upgrades.
This launch comes after Morgan Stanley downgraded Adobe Inc. (NASDAQ:ADBE)’s price estimate to $450 from $520 on September 24 due to worries regarding generative AI monetization.
Furthermore, despite Adobe Inc. (NASDAQ:ADBE)’s impressive 89% gross profit margin, there is still doubt about its capacity to convert the adoption of GenAI into steady ARR growth. Sentiment is also impacted by competitive forces from Meta, Google, and other diffusion-based engines.
Nevertheless, the debut of iPhone Premiere shows Adobe Inc. (NASDAQ:ADBE)’s determination to strengthen its creative ecosystem across platforms and increase its mobile services.
Adobe Inc. (NASDAQ:ADBE) is a technology company that creates generative AI tools and creative software, offering data insights, individualized digital experiences, and content creation solutions to consumers and companies worldwide. It is one of the Safest Stocks To Buy.
1. The Walt Disney Company (NYSE:DIS)
Return On Equity: 11.46%
Number of Hedge Fund Holders: 111
The Walt Disney Company (NYSE:DIS) is one of the 13 Safest Stocks to Invest in Now, supported by hedge fund interest and significant return on equity.
Ahead of the entertainment behemoth’s next earnings announcement, Goldman Sachs reiterated its Buy rating on The Walt Disney Company (NYSE:DIS) on September 29. The bank is still targeting a price of $152. Stronger-than-expected Direct-to-Consumer EBIT and domestic parks performance are the main drivers of the investment bank’s $1.19 EPS forecast, which beats the Visible Alpha consensus of $1.04.
Furthermore, for fiscal 2025-2028, Goldman forecasts a 13% EPS CAGR, citing operating leverage, cruise ship additions, and streaming growth. The Walt Disney Company (NYSE:DIS)’s trajectory as a superior earnings compounder is emphasized by bulls, but issues with vacation demand, cruise delays, and fewer streaming disclosures still exist. However, given the short-term improvement in earnings, the shares’ price is still attractive.
With operations in media networks, streaming, theme parks, resorts, and cruise lines throughout the Americas, Europe, and Asia Pacific, The Walt Disney Company (NYSE:DIS) is a multinational entertainment company. It is one of the Safest Stocks To Buy.
While we acknowledge the potential of DIS 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 DIS and that has 100x upside potential, check out our report about this cheapest AI stock.
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