In this article, we will take a look at the 13 Stocks With Low Beta That Can Beat Market Volatility.
In August, consumer spending and income both exceeded expectations. With the relatively low rate of inflation, companies and consumers are still placing orders for costly products. Even the housing market was showing signs of recovery, as August saw new sales reach a three-year high.
Such tendencies were previously driven by trillions of dollars in stimulus from the Federal Reserve’s low interest rates and liquidity injections as well as government spending. Now, though, the focus is on Wall Street’s well-known wealth effect and a string of new highs in key stock indexes despite inflated valuations.
That said, the momentum came across a bump on September 25 as US stocks fell while traders reassessed their expectations for Fed rate reduction, took in the weariness of the AI trade, and analyzed positive economic data. Early in the morning, all three of the main US indices fell, setting them up for their third consecutive day of losses.
Source: Pixabay
Our Methodology
For this list, we used screeners to note down some of the best low volatility stocks to buy. The following firms have low beta values (<1) and possess robust business fundamentals. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q2 2025.
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. Kimberly-Clark Corporation (NYSE:KMB)
Beta Value: 0.31
Number of Hedge Fund Holders: 42
Kimberly-Clark Corporation (NYSE:KMB) ranks among the stocks with low beta that can beat market volatility. On September 22, Evercore ISI maintained its Outperform rating on Kimberly-Clark Corporation (NYSE:KMB), but cut its price target from $155 to $150. Citing effects from pantry loading and marketing delays in North America, the firm lowered its third-quarter sales projections for Kimberly-Clark Corporation (NYSE:KMB) to about 1%, two percentage points below consensus predictions.
Even with the lower sales expectation, Evercore ISI maintained its earnings per share estimates, citing pulp deflation and cost reductions as compensatory factors.
Since Kimberly-Clark Corporation (NYSE:KMB) stock usually does well during regression-to-the-mean trading periods, Evercore ISI suggested that the current price is a viable entry point.
Kimberly-Clark Corporation (NYSE:KMB) is a major American manufacturer that specializes in personal care and hygiene products. The company operates through three primary business segments: Personal Care, Consumer Tissue, and K-C Professional. It sells its products under well-known brand names such as Kleenex, Scott, Cottonelle, DryNites, and Huggies.
12. Northrop Grumman Corporation (NYSE:NOC)
Beta Value: 0.09
Number of Hedge Fund Holders: 42
Northrop Grumman Corporation (NYSE:NOC) ranks among the stocks with low beta that can beat market volatility. On September 18, Northrop Grumman Corporation (NYSE:NOC) announced that it had been awarded a $48.4 million contract amendment for counter-explosive device systems, with a part designated for Australian military sales.
The contract is funded by numerous sources, including $25.1 million from Navy procurement funds, $14.4 million from Navy operations and maintenance funds, and $1.9 million from Air Force procurement funds. Out of the total amount, about $19.9 million is due to expire by the end of this fiscal year.
According to the U.S. Department of War, the work on the contract will be done in San Diego, California, and should be finished by March 2028.
Northrop Grumman Corporation (NYSE:NOC) is a leading defense contractor known for its innovative aircraft systems and critical role in national security.
11. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Beta Value: 0.27
Number of Hedge Fund Holders: 46
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) ranks among the stocks with low beta that can beat market volatility. On September 23, Morgan Stanley reaffirmed its Overweight rating on Jazz Pharmaceuticals plc (NASDAQ:JAZZ) and raised its price target from $163 to $167. The adjustment came after Jazz Pharmaceuticals plc (NASDAQ:JAZZ) revealed findings from the Xywav Phase 4 DUET open-label research at World Sleep Singapore through many poster presentations.
The study’s findings indicate that oxybates, the family of medications that contains Xywav, are distinct from other therapies and will likely continue being an essential treatment for hypersomnias, according to Morgan Stanley. In light of these findings, the firm has raised its estimated market share for Jazz’s oxybate products in its financial models.
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a biopharmaceutical company that develops treatments for serious illnesses. Its key products include Xywav, Xyrem, Epidiolex, Rylaze, Zepzelca, Defitelio, and Vyxeos.
10. Barrick Mining Corporation (NYSE:B)
Beta Value: 0.27
Number of Hedge Fund Holders: 53
Barrick Mining Corporation (NYSE:B) ranks among the stocks with low beta that can beat market volatility. RBC Capital maintained its Outperform rating on Barrick Mining Corporation (NYSE:B) on September 22 and boosted its price target from $34 to $38. The rise comes after RBC’s September 18 tour of the Nevada Gold Mines complex, a joint venture between Newmont and Barrick Mining.
In addition to outlining expected operational enhancements, Barrick Mining Corporation (NYSE:B) gave an in-depth review of its most recent Fourmile update, which RBC called “impressive.”
RBC anticipates that Fourmile’s momentum and future growth could be a major source of implied upside for Barrick Mining Corporation (NYSE:B) shares to continue narrowing its valuation gap, even if it is a longer-term project.
Barrick Mining Corporation (NYSE:B) is a global mining corporation that explores, develops, produces, and sells gold and copper. The company’s operations span eighteen countries.
9. The Allstate Corporation (NYSE:ALL)
Beta Value: 0.37
Number of Hedge Fund Holders: 63
The Allstate Corporation (NYSE:ALL) ranks among the stocks with low beta that can beat market volatility. In light of The Allstate Corporation (NYSE:ALL)’s August catastrophe loss report, Piper Sandler reaffirmed its Overweight rating and $225 price target on the insurance company on September 19.
According to the firm, Allstate’s August catastrophe losses came in less than expected, though policies-in-force (PIF) increased year-over-year, especially in the auto segment. This is the fourth straight month of year-over-year growth in Auto policies since the company began releasing monthly PIF data, with total policy growth accelerating sequentially from the prior month.
Additionally, Piper Sandler raised its 2025 EPS projection for The Allstate Corporation (NYSE:ALL) from $21.56 to $25.28, primarily due to lower-than-expected catastrophic losses thus far in the quarter.
The Allstate Corporation (NYSE:ALL) offers a variety of insurance services and products, such as protection, health, and property and casualty insurance. In addition, the company offers consumer protection plans, roadside assistance, and analytics solutions.
8. Humana Inc. (NYSE:HUM)
Beta Value: 0.44
Number of Hedge Fund Holders: 69
Humana Inc. (NYSE:HUM) ranks among the stocks with low beta that can beat market volatility. On September 22, Evercore ISI began coverage of Humana Inc. (NYSE:HUM) with an In Line rating and a $295 price target, emphasizing the company’s medium-term concerns as well as its potential for long-term earnings growth.
Evercore ISI stated that “after 2028, Humana Inc. (NYSE:HUM) has the right mix of assets to grow adjusted EBIT at an LDD rate (and EPS likely at a mid-teens CAGR),” despite the medium-term outlook being “less clear.”
With an estimate that “~70%+ of MA members” might be enrolled in 4-Star or higher plans by 2028, the firm praised management’s aim to return top-quartile Stars performance, calling it “reasonable.”
Although Evercore ISI is not expecting a Stars impact in 2027, it stated that this would be “a meaningful tailwind to EPS.”
Humana Inc. (NYSE:HUM) is focused on improving health and well-being by providing a variety of healthcare benefits to its medical and specialty members. These include fully insured medical and specialty health insurance that covers vision, dental, and supplemental health benefits.
7. Lockheed Martin Corporation (NYSE:LMT)
Beta Value: 0.26
Number of Hedge Fund Holders: 73
Lockheed Martin Corporation (NYSE:LMT) ranks among the stocks with low beta that can beat market volatility. On September 24, Lockheed Martin Corporation (NYSE:LMT) received various contracts worth around $81 million to operate on the Aegis combat and missile defense systems. For one, the US Department of War issued Lockheed Martin Rotary and Mission Systems a $22.7 million cost-plus-incentive-fee adjustment to a previous contract for in-service AEGIS maintenance, deploying, and product documentation.
The company was also awarded a separate $44.1 million sole-source contract adjustment for the Aegis Ballistic Missile Defense Weapon Systems. This amendment continues the incorporation of Integrated Air and Missile Defense technologies into the Aegis BMD Weapon Systems design and extends existing contract line items for a maximum of four months.
Expected to be completed by Late 2025 to mid-2026, these contracts are primarily funded by Navy operations and maintenance funds for fiscal 2025 as well as expenditures for research, development, testing, and evaluation.
Lockheed Martin Corporation (NYSE:LMT), created by the 1995 merger of Lockheed Corporation and Martin Marietta, is a global leader in aerospace, defense, weaponry, information security, and technology.
6. Cheniere Energy, Inc. (NYSE:LNG)
Beta Value: 0.37
Number of Hedge Fund Holders: 79
Cheniere Energy, Inc. (NYSE:LNG) ranks among the stocks with low beta that can beat market volatility. On September 18, BMO Capital began coverage of Cheniere Energy, Inc. (NYSE:LNG) with a $268 price target and an Outperform rating. Citing Cheniere’s expanding LNG export capacity as a primary strength, the firm sees Cheniere as a core long-term investment for energy infrastructure investors.
According to BMO Capital, Cheniere’s operations are protected by long-term take-or-pay contracts with an average remaining life of 16 years, which offers outstanding earnings visibility and risk mitigation.
The firm pointed out that these contracts provide a balanced risk-reward profile by retaining the possibility of profiting from favorable short-term swings in the price of LNG.
Cheniere Energy, Inc. (NYSE:LNG) is an American provider of liquefied natural gas storage and transportation services. The company operates through its subsidiaries, which include Cheniere Marketing, LLC and Cheniere Energy Partners, L.P.
5. The Cigna Group (NYSE:CI)
Beta Value: 0.47
Number of Hedge Fund Holders: 80
The Cigna Group (NYSE:CI) ranks among the stocks with low beta that can beat market volatility. UBS highlighted The Cigna Group (NYSE:CI) as its top choice in the Healthcare Facilities & Managed Care sector on September 23 and maintained its Buy rating on the company’s shares, with a price target of $390. According to the firm, The Cigna Group (NYSE:CI) is the largest Managed Care Organization that is least susceptible to the volatility in government businesses, where pressure is mounting.
UBS observes that Cigna’s long-term earnings growth trajectory is untouched as the company continues to buy back shares, recovers margin in its stop loss business, and seizes additional chances in specialty pharmacy.
Although there is an industry overhang associated with Pharmacy Benefit Management reform, UBS believes that any legislation that passes would not significantly affect Cigna’s earnings and might even act as a clearing event for the company’s shares.
The Cigna Group (NYSE:CI) specializes in providing insurance and associated services in the United States, such as pharmaceutical benefits, home delivery pharmacy, and specialty pharmacy distribution.
4. Exxon Mobil Corporation (NYSE:XOM)
Beta Value: 0.49
Number of Hedge Fund Holders: 88
Exxon Mobil Corporation (NYSE:XOM) ranks among the stocks with low beta that can beat market volatility. On September 23, UBS restated its Buy rating for Exxon Mobil Corporation (NYSE:XOM), with a $143 price target. According to analyst Josh Silverstein, absolute energy demand will continue to rise into 2050, driven primarily by developing nations, which will likely consume significantly more energy, despite a projected decrease in energy consumption per capita as technology evolves.
Exxon Mobil Corporation (NYSE:XOM) that oil demand could rise to almost 105 million barrels per day by 2050, up from roughly 100 million barrels per day last year, thus requiring sustained investment in both current and future endeavors to meet global demand.
Exxon Mobil Corporation (NYSE:XOM) estimates tight oil output in the United States to peak around 2030, although the oil giant predicts that technology developments such as improved fracturing engineering and enhanced oil extraction methods could contribute roughly 2.5 million barrels of oil per day of recovery by 2050.
Exxon Mobil Corporation (NYSE:XOM) engages in the production, trade, transportation, and sale of crude oil, natural gas, petroleum products, petrochemicals, and specialized goods.
3. AbbVie Inc. (NYSE:ABBV)
Beta Value: 0.50
Number of Hedge Fund Holders: 89
AbbVie Inc. (NYSE:ABBV) ranks among the stocks with low beta that can beat market volatility. On September 24, Leerink Partners maintained its Outperform rating on AbbVie Inc. (NYSE:ABBV) and raised its price target on the company’s shares from $210 to $243. The increase comes after AbbVie Inc. (NYSE:ABBV) announced on September 11 that it had reached a settlement that would allow generic Rinvoq to be introduced in April 2037, over four years later than Leerink had previously predicted.
Leerink added “very strong current business performance” to its list of considerations, emphasizing Skyrizi’s ongoing expansion in spite of its already substantial market dominance.
The firm forecasts that as pressure from Humira biosimilars decline, Abbvie’s total top-line growth will pick up speed, rising from 8% in 2025 to 11% in 2026. Though no specifics were given, Leerink also identified three oncology pipeline candidates that would eventually contribute significantly to Abbvie’s revenue.
AbbVie Inc. (NYSE:ABBV) is a biopharmaceutical company that specializes in developing, manufacturing, and marketing therapies for complicated and chronic illnesses. Its next-generation immunology medications, Rinvoq and Skyrizi, continue to drive growth.
2. Walmart Inc. (NYSE:WMT)
Beta Value: 0.67
Number of Hedge Fund Holders: 105
Walmart Inc. (NYSE:WMT) ranks among the stocks with low beta that can beat market volatility. UBS reaffirmed its Buy rating and $110 price target for Walmart Inc. (NYSE:WMT) on September 22 following a visit to the retailer’s clothing pop-up shop in New York City. During the visit, UBS reinforced its belief that Walmart Inc. (NYSE:WMT) has solid potential to grow its clothes division, which has recently been one of its better-performing segments within its general merchandise sector.
UBS pointed out that Walmart Inc. (NYSE:WMT) has been implementing a methodical approach while moving quickly over the past few years, having carefully identified areas where it might better serve customers.
The bank emphasized Walmart’s increased emphasis on quality and value rather than merely pricing, which led to products that seem “much sharper and trendy,” characteristics that UBS thinks might be mirrored in other general retail categories.
Walmart Inc. (NYSE:WMT) ranks as the world’s largest brick-and-mortar retailer, with over 100,000 stores. The company’s sectors include Walmart US, Walmart International, and Sam’s Club, which provide a wide range of products, including clothes, electronics, and home furnishings.
1. Eli Lilly & Company (NYSE:LLY)
Beta Value: 0.46
Number of Hedge Fund Holders: 119
Eli Lilly & Company (NYSE:LLY) ranks among the stocks with low beta that can beat market volatility. Following the European Association for the Study of Diabetes (EASD) meeting, Bernstein SocGen Group affirmed its Outperform rating on Eli Lilly & Company (NYSE:LLY) with a $1,100 price target.
In its analysis, the firm stated that it had “greater confidence in orfo as the leading oral GLP-1” drug. Bernstein’s analysis drew from important information that was provided during the conference, conversations with prominent figures on obesity, and Eli Lilly’s sell-side event.
Additionally, Bernstein saw a trend among physicians demonstrating “reduced willingness to accept placebo-controlled trials,” which the firm believes is key for upcoming pivotal development initiatives in the GLP-1 domain.
Eli Lilly & Company (NYSE:LLY) is a major global pharmaceutical company that develops, manufactures, and distributes a wide range of drugs. Founded in 1876, it has grown to become one of the world’s largest pharmaceutical companies.
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