In this article, we will take a look at the 14 Best Low Volatility Dividend Stocks to Invest In.
Morgan Stanley’s Global Investment Committee believes the current bull market still has room to run and could extend into a fourth year. The firm expects the S&P 500 Index to deliver close to double-digit percentage returns, with a projected level of around 7,500. Some strategists are even more optimistic and see the potential for stronger gains.
A major driver behind this confidence is the surge in artificial intelligence spending as companies are investing heavily in AI infrastructure and tools, and investors increasingly see GenAI as a long-term growth engine. The expectation is that these investments will not only support revenue growth but also improve productivity across industries. Earnings expectations reflect that optimism. Analysts are forecasting EPS growth of 14% to 16% in 2026, which is an unusually strong outlook. For the 493 companies in the S&P 500 outside of the “Magnificent 7,” this would mean earnings growth accelerating sharply compared to 2025. In practical terms, it implies that growth would double for the broader market beyond the biggest tech names.
That kind of outlook also raises the stakes. Markets are already trading at elevated valuations, and the largest stocks carry significant weight. The top 10 companies alone now make up about 40% of the index. This concentration means that if earnings fall short of expectations, even slightly, it could put pressure on the broader market. Given this environment, Morgan Stanley is emphasizing quality. The firm sees stronger opportunities in sectors such as financials, healthcare, selected industrials and materials, aerospace, defense, and energy. These areas are viewed as better positioned to deliver steady performance.
The firm also sees value outside the United States. After outperforming U.S. equities in 2025, international stocks still appear relatively inexpensive and supported by solid fundamentals. Emerging markets, in particular, could benefit from easing central bank policies, improving global growth, and a weaker US dollar. Certain Latin American economies may also see added support from the current US policy direction.
Given this, we will take a look at some of the best low-volatility stocks.
Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/
Our Methodology:
For this list, we screened for companies from different sectors with solid dividend policies and sound financials. From that list, we picked companies with a beta value of less than 1, which shows that these stocks are less volatile than the overall market. The stocks were ranked according to their beta value.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 63
Beta Value (5Y Monthly): 0.69
According to a February 12 report by Bloomberg, International Business Machines Corporation (NYSE:IBM) said it plans to triple its entry-level hiring in the US in 2026. This comes at a time when AI is widely seen as reducing opportunities for early-career workers across many industries. The company did not share exact hiring numbers. Still, it said the increase would apply broadly, covering multiple departments rather than focusing on just one area. “And yes, it’s for all these jobs that we’re being told AI can do,” said Nickle LaMoreaux, IBM’s chief human resources officer, speaking at a conference in New York this week.
LaMoreaux explained that she revised entry-level job descriptions for software developers and other roles. The goal was to show internally why expanding hiring at this level still made sense. This shift is already changing how junior employees work at IBM. Since AI can now handle much of the routine coding, junior developers are spending less time writing basic code. Instead, they are working more closely with customers and supporting real-world implementation.
A similar change is happening in HR. Entry-level staff are no longer answering every employee’s question directly. Instead, they step in when HR chatbots fail to provide accurate responses. Their role now includes reviewing AI output, correcting errors, and working with managers when needed. LaMoreaux said cutting entry-level hiring might reduce costs in the short term, but it creates long-term risks. Without enough early-career hires, companies may struggle to develop future mid-level managers. That often forces firms to hire from competitors, which tends to be more expensive.
She added that external hires usually need more time to adjust. Employees who grow within the company are already familiar with its systems, culture, and processes.
International Business Machines Corporation (NYSE:IBM) provides hybrid cloud, artificial intelligence, and consulting services worldwide. Its business is organized into Software, Consulting, Infrastructure, and Financing segments.
13. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 71
Beta Value (5Y Monthly): 0.32
On February 19, Daiwa upgraded Verizon Communications Inc. (NYSE:VZ) to Buy from Outperform. The firm also raised its price target to $58 from $48. The analyst pointed to the company’s fourth-quarter performance, which showed clear momentum. Verizon reported “stellar” Q4 metrics, including 616,000 postpaid phone net additions. That marked its strongest quarterly result since 2019, according to the research note. The firm believes this trend can continue. It sees the “strong” customer additions in Q4 as sustainable into 2026. Daiwa also highlighted Verizon’s current valuation, which it considers low relative to its outlook. Based on that, the analyst said the stock offers the best risk/reward opportunity in the telecom sector.
During Verizon’s Q4 2025 earnings call, CEO Daniel Schulman spoke about the company’s ongoing transformation. He described it as a broad turnaround effort built on decisive and meaningful changes. A key part of that process involves restructuring the organization, including resizing the workforce, reducing headcount, and eliminating operational overlap. He said these steps are expected to create an in-year OpEx savings pool of $5 billion. Much of the savings will come from workforce reductions. The company also expects gains from more efficient marketing, reduced real estate use, renegotiated contracts, and other cost-cutting efforts.
Schulman also confirmed that Verizon had completed its Frontier acquisition. This expanded the company’s fiber footprint to more than 30 million fiber passings. He said Verizon plans to add at least 2 million more this year. Over the medium term, the company is targeting a total footprint of 40 million to 50 million fiber passings. He added that Verizon now expects to generate more than $1 billion in run-rate operating cost synergies by 2028. That figure is twice the original estimate, reflecting stronger expected benefits from the integration.
In addition, Schulman said Verizon had renewed its MVNO partnership with Comcast and Charter. He described the agreement as financially beneficial and said it would ensure their customers continue operating on Verizon’s network.
Verizon Communications Inc. (NYSE:VZ) operates as a holding company. Through its subsidiaries, it provides communications, technology, information, and streaming services to consumers, businesses, and government customers.
12. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 72
Beta Value (5Y Monthly): 0.76
On February 18, Erste Group upgraded NextEra Energy, Inc. (NYSE:NEE) to Buy from Hold. The upgrade followed the company’s decision to raise its long-term growth outlook. According to the analyst, NextEra now expects EPS to grow at a compound annual rate of 8% through 2032 and maintain that same pace through 2035. The firm said this outlook reflects growing confidence in rising electricity demand over the coming years. Erste also pointed out that NextEra stands out financially. The company’s ROE and operating margins remain well above those of its peers. Because of this, the analyst believes the stock still has meaningful upside potential.
A few days earlier, on February 13, NextEra’s board approved a higher quarterly dividend. The company declared a regular quarterly dividend of $0.6232 per share. This represents a 10% increase compared with the same quarterly dividend last year. The increase aligns with NextEra’s broader dividend plan. The company previously said it expects dividend per share growth of about 10% annually through 2026, based on its 2024 starting point. After that, it plans to grow the dividend at a 6% annual rate from the end of 2026 through 2028. The dividend will be paid on March 16, 2026, to shareholders on record as of February 27, 2026.
NextEra Energy, Inc. (NYSE:NEE) is one of the largest electric power and energy infrastructure companies in North America. It supplies electricity to millions of homes and businesses and plays a major role in the region’s energy system.
11. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 75
Beta Value (5Y Monthly): 0.61
On February 12, RBC Capital raised its price recommendation on AT&T Inc. (NYSE:T) to $31 from $29. The firm maintained an Outperform rating on the stock. The analyst said the company’s fiber expansion is creating a clear long-term growth path. At the same time, this investment helps protect its wireless business from rising competition. The firm also noted that AT&T’s ongoing exit from legacy assets is expected to significantly boost free cash flow through 2028 and beyond.
During the Q4 2025 earnings call, CEO John Stankey said the company delivered results that met or exceeded its full-year guidance. Growth in both 5G and fiber subscribers played a major role in that performance. He said AT&T added more than 1.5 million postpaid phone customers in 2025. This marked the fifth straight year the company reached that level. Fiber growth remained strong as well, with more than 1 million AT&T Fiber net additions for the eighth consecutive year.
Stankey also highlighted the company’s shareholder returns. AT&T returned more than $12 billion through dividends and share buybacks. That total was more than 50% higher than what it returned in 2024. He also confirmed that AT&T had finalized deals to acquire spectrum licenses from EchoStar and fiber assets from Lumen. Both transactions are expected to close in early 2026. Once completed, and combined with Gigapower and the Lumen fiber assets, AT&T expects its fiber network to reach more than 40 million locations by the end of the year. That would be up from 32 million locations at the end of 2025.
Stankey said the company is continuing to accelerate its fiber buildout. AT&T plans to expand fiber coverage by about 5 million locations per year for the rest of the decade. He added that the company is also seeing better customer overlap between its fiber and wireless services. AT&T’s fiber convergence rate improved by 200 basis points year over year to 42%. This marked the fastest annual increase since the company began tracking that measure.
AT&T Inc. (NYSE:T) operates as a global telecommunications and technology holding company. Its business is primarily organized into Communications and Latin America segments, serving both consumer and business customers.
10. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 81
Beta Value (5Y Monthly): 0.41
On February 10, Citi analyst Simon Hales raised his price recommendation on Philip Morris International Inc. (NYSE:PM) to $210 from $200. The analyst reiterated a Buy rating on the stock. The analyst’s update reflects continued confidence in the company’s growth outlook, particularly as its smoke-free products gain momentum.
During the Q4 2025 earnings call, Group CEO Jacek Olczak said 2025 marked another strong year for PMI. He pointed to the company’s progress in expanding its smoke-free business and strengthening its overall position. Smoke-free product volumes increased by 12.8% during the year, while organic smoke-free gross profit rose even faster, up 18.7%. This showed that the segment was not only growing but also becoming more profitable.
Olczak said IQOS remained the company’s biggest growth driver. Shipments and adjusted IMS both increased by about 11%, and PMI expanded its smoke-free footprint to 106 markets. This steady expansion continues to push smoke-free products deeper into its global business. He also highlighted the company’s multi-category strategy. ZYN, excluding the Nordics, and VEEV both more than doubled their shipment volumes in international markets. Olczak said ZYN was gaining meaningful traction outside its traditional regions, while VEEV had become the fastest-growing closed pod brand globally.
Financially, the company reached an important milestone. PMI’s total net revenue surpassed $40 billion in 2025. Smoke-free products accounted for 41.5% of that total, or nearly $17 billion. At the same time, the company’s adjusted operating margin recovered to above 40%, showing improved efficiency and profitability. Olczak also noted that 27 markets had reached a key tipping point, where more than half of total net revenue now comes from smoke-free products. This reflects the company’s ongoing shift away from traditional cigarettes toward reduced-risk alternatives.
He added that PMI reaffirmed its three-year CAGR targets for organic operating income and currency-neutral EPS. The company is also working to strengthen its balance sheet, with plans to bring its leverage ratio down to around 2x by the end of 2026.
Philip Morris International Inc. (NYSE:PM) is a global tobacco company. Its portfolio includes traditional cigarettes as well as a growing range of smoke-free products. The smoke-free segment also includes wellness and healthcare products, along with consumer accessories such as lighters and matches.
9. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 82
Beta Value (5Y Monthly): 0.29
On February 20, Barclays began coverage of Bristol-Myers Squibb Company (NYSE:BMY) with an Overweight rating and a $75 price target. The analyst acknowledged that the company is approaching a difficult period, pointing to a “patent cliff” as exclusivity for key drugs like Eliquis and Opdivo moves closer to expiration. At the same time, the firm noted that early signs of progress in the company’s pipeline are starting to appear, describing them as “green shoots” in a research note. Barclays also said there could be room for upside in estimates, which may support valuation expansion in Bristol Myers shares.
Earlier, on February 5, Bristol Myers issued guidance that came in ahead of Wall Street expectations. The company said it expects price adjustments to its blood thinner Eliquis to support revenue growth. It projected total revenue of $46.0 billion to $47.5 billion for 2026, exceeding analysts’ forecasts of $44.2 billion, according to LSEG data. The company also expects Eliquis revenue to increase between 10% and 15% this year. This outlook stood in contrast to prior expectations. Analysts had anticipated a meaningful decline in Eliquis sales, which totaled $14.4 billion in 2025, as a result of lower pricing and the drug’s inclusion among the first 10 medicines subject to Medicare price negotiations under the Inflation Reduction Act. Bristol Myers explained that reducing Eliquis’ list price would help the company avoid penalties tied to price increases that exceed inflation under the Medicare program.
Bristol Myers sells Eliquis in partnership with Pfizer. In June, the two companies said they would begin offering the drug directly to cash-paying U.S. patients at a discount of more than 40%. That move was followed by a price reduction for commercial patients starting January 1. Even so, the company expects Eliquis revenue to decline by $1.5 billion to $2 billion in 2027, as the drug is set to lose patent protection in Europe toward the end of that year.
The company also projected adjusted earnings between $6.05 and $6.35 per share for 2026, which came in above analysts’ consensus estimate of $6.02.
Bristol-Myers Squibb Company (NYSE:BMY) operates as a global biopharmaceutical firm focused on developing and delivering treatments for serious diseases. Its work spans several areas, including oncology, hematology, immunology, cardiovascular conditions, neuroscience, and other therapeutic fields.
8. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 83
Beta Value (5Y Monthly): 0.33
On February 20, Barclays began coverage of AbbVie Inc. (NYSE:ABBV) with an Overweight rating. It set a price target of $275 on the stock. The firm said current consensus estimates do not fully reflect AbbVie’s operating leverage potential. In its note, Barclays added that positive results from any of the company’s proof-of-concept studies could lead to further upside, as successful outcomes may drive multiple expansion in the stock.
The same day, AbbVie announced an important regulatory approval. The US Food and Drug Administration approved a supplemental new drug application for the combination of VENCLEXTA® (venetoclax) and acalabrutinib. This regimen is now approved for adult patients with chronic lymphocytic leukemia (CLL) who have not received prior treatment. The approval was supported by results from the Phase 3 AMPLIFY trial.
This marks a meaningful development in first-line CLL treatment. The VENCLEXTA and acalabrutinib combination is now the first and only all-oral, fixed-duration regimen available for previously untreated patients. It gives patients the possibility of completing treatment and spending time off therapy, while also offering doctors a targeted option that combines two oral therapies designed to treat the disease more effectively.
AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical company focused on research, development, and commercialization of medicines. Its portfolio spans several major areas, including immunology, oncology, aesthetics, neuroscience, and eye care, along with other key therapeutic products.
7. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 88
Beta Value (5Y Monthly): 0.38
On February 18, Erste Group analyst Stephan Lingnau upgraded The Procter & Gamble Company (NYSE:PG) to Buy from Hold. The update came as the analyst showed growing confidence in the company’s outlook. In his note, he said Procter & Gamble expects fiscal year sales to increase between 1% and 5%, with EPS projected to grow between 1% and 6%. The company also plans to return a substantial amount of capital to shareholders, targeting $14B to $15B in total. This includes roughly $10B in dividends and another $4B to $5B through share repurchases. The analyst added that the stock still appears attractively valued given its stability and cash return profile.
Still, Procter & Gamble is not entirely insulated from economic pressures. In its fiscal second quarter, sales were flat compared with the same period a year ago, excluding the effects of currency changes and portfolio adjustments. The quarter ended on December 31, 2025. This slower growth likely reflects a more cautious consumer environment, as shoppers continue adjusting to higher prices across many everyday goods.
Even with that backdrop, the company continues to focus on strengthening its product lineup. Procter & Gamble holds leading positions in many of its categories, which gives it room to introduce new products and improve existing ones. That strong market presence should help support steady growth over time. Cash flow remains a major strength. In the first half of the fiscal year, the company generated $8 billion in free cash flow, well above the $5.1 billion it paid in dividends. This gap shows that Procter & Gamble has plenty of room to support its dividend, even during slower periods.
Dividends have been a core part of the company’s identity for generations. Procter & Gamble has paid dividends every year since 1890. Even more notable, it has increased its dividend annually for 69 consecutive years. That consistency highlights the durability of its business and its long-standing commitment to returning cash to shareholders.
The Procter & Gamble Company (NYSE:PG) sells branded consumer products across global markets. Its business spans Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. Its products are used by consumers in roughly 180 countries and territories.
6. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 89
Beta Value (5Y Monthly): 0.53
On February 18, Erste Group upgraded McDonald’s Corporation (NYSE:MCD) to Buy from Hold, reflecting a more optimistic outlook for the company’s growth. The firm said it expects McDonald’s sales to grow “more strongly” in 2026 compared with 2025. The analyst also pointed to the company’s strong financial profile, noting that the stock should benefit from McDonald’s “high profitability and good prospects,” according to the research note.
Earlier, on February 11, McDonald’s reported fourth-quarter results that came in ahead of Wall Street expectations. The company delivered stronger global comparable sales and profit, helped by meal deals and effective marketing campaigns that attracted cost-conscious customers in the U.S. Demand also remained steady in key international markets such as Australia and Britain.
Global same-store sales increased 5.7% in the quarter ended December 31. This was well above analysts’ expectations, which had called for a 3.7% increase, based on LSEG data. Speaking on the earnings call, CEO Chris Kempczinski said the company was seeing clear signs that its value-focused strategy was working. He noted that visits from lower-income customers had increased, showing that promotions and affordable meal options were bringing people back. McDonald’s had introduced subsidies last year to support franchisees offering its “extra value” meals. While those subsidies are now being reduced, the strategy helped drive traffic during the quarter.
In the US, which remains McDonald’s largest market, comparable sales rose 6.8% during the October to December period. This marked the strongest increase in nearly two years. A year earlier, sales had declined 1.4%, partly due to an E. coli outbreak that affected customer demand. Analysts had expected a smaller increase of about 4.9%, making the actual result a clear positive surprise.
McDonald’s Corporation (NYSE:MCD) operates one of the largest foodservice networks in the world. Its business is divided into the US, International Operated Markets, and International Developmental Licensed Markets & Corporate segments. The US remains its biggest market, and about 95% of its restaurants there are operated by franchisees.
5. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 99
Beta Value (5Y Monthly): 0.30
On February 20, Barclays started coverage of Merck & Co., Inc. (NYSE:MRK) with an Overweight rating. It set a $140 price target on the stock. The firm said the company’s 2026 will bring “first-in-class” launches and important data readouts that could shape its next phase of growth. The analyst added that Merck shares offer potential for both earnings upside and multiple expansion, pointing to improving confidence in its future earnings power.
Merck is also preparing for a structural change as it looks ahead to the eventual loss of exclusivity on its biggest drug. According to the Wall Street Journal, the company plans to split its main pharmaceutical business into two separate units. One will focus on cancer treatments, including Keytruda, its blockbuster immunotherapy. The other will handle non-cancer products, such as the HPV vaccine Gardasil. This shift reflects how central Keytruda has become to Merck’s business. The drug accounts for nearly half of the company’s total revenue. But that strength also brings risk. Keytruda is expected to lose patent protection in the US in 2028, which could open the door to cheaper competing versions and weigh on future sales.
Merck is trying to get ahead of that challenge. The company is counting on its non-cancer portfolio to help drive growth and soften the impact once Keytruda faces competition. At the same time, it has been actively acquiring biotechnology companies to strengthen its pipeline. One example is Winrevair, a newer treatment aimed at lung disease.
The company is also working to build its next wave of products. More than 20 new drug launches, or new uses for existing treatments, are planned in the coming years, the Journal reported. These efforts are meant to create new revenue streams and reduce reliance on any single blockbuster drug.
Merck & Co., Inc. (NYSE:MRK) is a global healthcare company focused on developing and delivering health solutions. Its portfolio includes prescription medicines, biologic therapies, vaccines, and animal health products, serving patients and healthcare providers around the world.
4. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 102
Beta Value (5Y Monthly): 0.35
On February 20, Bloomberg reported that Johnson & Johnson (NYSE:JNJ) is exploring a possible sale of its orthopedics unit, DePuy Synthes, as part of its broader separation plan. According to people familiar with the matter, several large buyout firms have already shown interest. The unit could be valued at more than $20 billion if a deal moves forward, though the discussions remain private.
J&J is currently preparing detailed financial documents for DePuy Synthes ahead of meetings with potential buyers in the coming weeks. Some major private equity firms are even considering joining forces to pursue an acquisition. The business could also attract interest from other medical device companies looking to strengthen their orthopedic offerings.DePuy Synthes is a significant part of J&J’s MedTech portfolio. The unit develops devices used in hip and knee replacements and generated $9.3 billion in revenue last year. Its size and established position in the market make it a valuable asset, which explains the strong early interest.
Still, the process is in its early stages. There is no certainty that J&J will ultimately sell the unit. A company representative declined to comment on the matter.J&J had already announced in October that it planned to separate its slower-growing orthopedics business within 18 to 24 months. At the time, Chief Financial Officer Joseph Wolk said the company had not decided on the exact structure of the separation. He noted that a spinoff was one option, though it would take more time and resources. He also said the company was “open to ideas that others might have,” including a sale or alternative transaction if it created greater value.
If DePuy Synthes becomes an independent company, it would stand as the largest orthopedics business globally, based on J&J’s own expectations. Bloomberg Intelligence analyst Matt Henriksson has estimated the unit could be worth about $28 billion, including debt.
Johnson & Johnson (NYSE:JNJ) operates as a global healthcare company focused on developing, manufacturing, and selling a wide range of medical products. Its business is organized around two main segments: Innovative Medicine and MedTech.
3. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 105
Beta Value (5Y Monthly): 0.99
On February 20, BMO Capital raised its price recommendation on Union Pacific Corporation (NYSE:UNP) to $295 from $255. The firm reiterated a Market Perform rating on the shares. The update was part of the firm’s broader review of the Transportation sector. The analyst pointed out that transportation stocks have rallied strongly since late November 2025. Even so, the move does not appear overstretched when viewed in the context of the full freight cycle, which peaked in 2022. The recent gains reflect a recovery that is still playing out, rather than a cycle that has already reached its limits. BMO added that if the freight cycle continues moving along this recovery path, transportation stocks could see further upside.
Earlier in the month, on February 4, Union Pacific announced a major agreement with Wabtec valued at $1.2 billion. The deal focuses on modernizing the railroad’s AC4400 locomotives and represents the largest locomotive modernization investment in the history of the rail industry. It builds on a previous order placed in 2022, which is expected to be completed in 2026. The modernization effort is aimed at improving how the railroad operates day to day. The upgraded locomotives are expected to improve efficiency, strengthen service reliability, and support overall network performance. This kind of investment reflects Union Pacific’s ongoing effort to run a more consistent and dependable rail system.
Wabtec’s program will also extend the useful life of the locomotives and bring greater standardization across the fleet. At the same time, the upgrades will allow Union Pacific to benefit from newer control systems and diagnostic tools. The improvements are expected to reduce fuel consumption by more than 5%, increase tractive effort by 14%, and improve reliability by 80%.
The agreement, signed in the fourth quarter of 2025, marks Union Pacific’s fourth major modernization order from Wabtec since 2018. Once the project is finished, the company will have more than 1,700 modernized locomotives in service. Production will take place at Wabtec’s facilities in the United States, with deliveries scheduled to begin in 2027.
Union Pacific Corporation (NYSE:UNP) operates one of the largest freight rail networks in the country through its main subsidiary, Union Pacific Railroad Company. Its rail system connects 23 states across the western two-thirds of the United States, playing a key role in moving goods and supporting the broader global supply chain.
2. Walmart Inc. (NASDAQ:WMT)
Number of Hedge Fund Holders: 112
Beta Value (5Y Monthly): 0.67
On February 20, Telsey Advisory raised its price recommendation on Walmart Inc. (NASDAQ:WMT) to $140 from $135. The firm reiterated an Outperform rating on the stock. The analyst told investors that Walmart is expected to remain a leader in retail and continue gaining market share. The firm also pointed to Walmart’s ongoing shift toward becoming a more tech-forward company as a key part of its long-term strength.
During the fiscal Q4 2026 earnings call, CEO John Furner said revenue rose 4.9% in constant currency, driven in part by strong 24% growth in eCommerce. He noted that adjusted operating income increased even faster, climbing 10.5%. He also said all three business segments delivered profit growth that exceeded their sales growth for the quarter. This showed that the company is not just growing, but also improving how efficiently it operates.
Furner also spoke about inventory. He said inventory at the end of the quarter was up 2.6%, which was about half the pace of sales growth. He explained that this reflected disciplined inventory management and better control over stock levels. He added that Walmart is continuing to gain market share and is seeing steady progress in areas like marketplace, advertising, and membership.
Customer trends were also encouraging. The company said the number of customers using fast delivery, defined as delivery within three hours, increased more than 60% over the year. This points to rising demand for faster and more convenient shopping options. Furner also highlighted Sparky, Walmart’s AI-powered shopping assistant. He said customer engagement has increased, and customers who use Sparky tend to spend more. According to him, customers using Sparky generate average order values about 35% higher than those who do not use it.
Walmart Inc. (NASDAQ:WMT) operates as a technology-powered omnichannel retailer. The company runs retail and wholesale stores and clubs, along with eCommerce websites and mobile apps. Its operations span the United States, as well as international markets including Africa, Canada, Central America, Chile, China, India, and Mexico.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 135
Beta Value (5Y Monthly): 0.39
On February 20, Barclays initiated coverage of Eli Lilly and Company (NYSE:LLY) with an Overweight rating. The firm set a $1,350 price target on the stock. The firm said GLP-1 weight loss treatments represent a “durable structural shift,” reflecting growing confidence in the long-term demand for these therapies. The analyst added that Eli Lilly is well-positioned to remain the market share leader in obesity, and Barclays believes the stock deserves a premium valuation given its strong position in this fast-growing category.
Just two days earlier, on February 18, Eli Lilly shared encouraging results from a late-stage study involving its weight-loss drug Zepbound and psoriasis treatment Taltz. The company said patients who received both treatments saw better outcomes than those who were treated with Taltz alone. The study included 274 patients and showed clear improvements in both skin symptoms and weight loss. About 27.1% of patients who received the combination of Taltz and Zepbound achieved complete skin clearance along with at least 10% weight loss. In comparison, only 5.8% of patients treated with Taltz alone reached the same results after 36 weeks. The study met its main goal, highlighting the potential benefit of combining the two therapies.
Psoriasis is a chronic condition that causes itchy, scaly patches on the skin and can be difficult to manage, especially in sensitive areas. Lilly noted that nearly all participants in the trial had psoriasis affecting areas such as the face, scalp, or genitals, which are often harder to treat effectively. The company also pointed to the broader connection between psoriasis and weight-related health issues. In the United States, about 61% of people with psoriasis are either obese or overweight and have at least one related health condition. This overlap creates an opportunity for treatments that address both issues at the same time.
Lilly said side effects reported during the study were generally mild to moderate. The company plans to publish the full results in a peer-reviewed journal and share the findings with regulators as part of the next steps.
Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company focused on discovering, developing, manufacturing, and selling medicines for a wide range of health conditions.
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