In this article, we will take a look at the 5 Best Bear Market Stocks to Invest In Right Now. For deeper discussion and analysis, have a look at the 10 Best Bear Market Stocks to Invest In Right Now.
Photo by Dan Dennis on Unsplash
5. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 74
On April 20, Lauren Lieberman of Barclays raised the firm’s price recommendation on PepsiCo, Inc. (NASDAQ:PEP) to $158 from $154. It reiterated an Equal Weight rating following earnings. She said PepsiCo Foods North America “finally delivered the volume inflection investors have been waiting for.” At the same time, she noted the company now needs to show that these results can be sustained.
On April 22, PepsiCo announced a multi-year strategic collaboration with Google Cloud. The goal is to strengthen its digital foundation and use the Gemini Enterprise Agent Platform to help teams move from insight to action more quickly and consistently at scale. PepsiCo is working with Google Cloud to reshape its IT ecosystem and advance its multi-cloud strategy. The partnership is designed to give the company more flexibility in using AI tools to address complex business challenges, including supply chain management and go-to-market execution. By moving to Google Cloud’s secure global infrastructure, PepsiCo plans to build new digital capabilities across its operations.
PepsiCo, Inc. (NASDAQ:PEP) operates as a global food and beverage company. It manufactures, markets, and distributes products such as Pepsi, Lay’s, Gatorade, and Quaker across more than 200 countries.
4. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 82
On April 22, Reuters reported that Philip Morris International Inc. (NYSE:PM) lowered its annual profit forecast amid regulatory uncertainty around its Zyn nicotine pouches and rising competition in tobacco products. The company has been pushing to move beyond cigarettes. At the same time, it is facing stronger competition from alternatives such as British American Tobacco’s Velo, along with delays in getting approval for new Zyn products.
CFO Emmanuel Babeau said a complex regulatory environment continues to slow innovation and the transition of adult smokers to smoke-free products. Philip Morris now expects full-year adjusted EPS of $8.36 to $8.51, down from its earlier forecast of $8.38 to $8.53. The midpoint is about $0.04 above analysts’ expectations, based on data compiled by LSEG.
The company added that it has included a small impact from the Middle East conflict in its outlook, but does not expect any prolonged effect. Shares rose about 6% after strength in its international smoke-free business helped deliver a first-quarter beat. Quarterly revenue came in at $10.15 billion, ahead of estimates of $9.91 bilion. Adjusted EPS was $1.96, above expectations of $1.83. US Zyn shipments declined 23.5%, which the company linked mainly to inventory adjustments by distributors and retailers. In contrast, shipments for its international smoke-free segment increased 11.9%.
Philip Morris International Inc. (NYSE:PM) is an international tobacco company. Its portfolio includes cigarettes and smoke-free products. The smoke-free business also covers wellness and healthcare products, along with consumer accessories such as lighters and matches.
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 86
On April 22, Scotiabank raised its price recommendation on Chevron Corporation (NYSE:CVX) to $187 from $168. It reiterated a Sector Perform rating on the shares. The firm said it is updating price targets for US Integrated Oil, Refining, and Large Cap E&P companies under its coverage. Its view on the sector remains mixed. It is generally above consensus earnings estimates for the E&P group, while sitting below expectations for independent refiners. Looking ahead, the firm expects investor focus to shift toward whether recent volatility in the oil market will affect activity levels in 2026 and beyond.
On April 23, Reuters reported that Chevron had fully restored production at its Wheatstone LNG facility in Western Australia after completing repairs tied to cyclone damage from the prior month. The company said Tropical Cyclone Narelle hit the 8.9 million-ton-per-year plant in late March, forcing both LNG processing trains offline.
Danny Woodall, director of operations and maintenance for Australia, said the cyclone’s extreme winds damaged several hundred air-cooled heat exchangers, known as fin fans, making the repair process both extensive and complex. He added that domestic gas supply for Western Australian customers was restored within about a week, while LNG production returned gradually over time.
Chevron Corporation (NYSE:CVX) is an integrated energy company. It produces crude oil and natural gas, manufactures transportation fuels, lubricants, petrochemicals, and additives, and develops technologies to support its operations and the broader industry.
2. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 100
On April 22, Merck & Co., Inc. (NYSE:MRK) and Google Cloud announced a major partnership aimed at strengthening Merck’s digital backbone as an AI-enabled enterprise. The multi-year investment, valued at up to $1 billion, will introduce an agentic platform across research and development, manufacturing, commercial, and corporate functions. It also includes Google Cloud engineers working directly with Merck teams to deploy advanced AI tools, including Gemini Enterprise.
The partnership brings together Merck’s scientific and data capabilities with Google Cloud’s AI and cloud platforms. The goal is to digitize data and improve productivity across the company’s global workforce of 75,000 employees, supporting its focus on improving and saving lives. By combining their expertise, the two companies plan to build advanced AI solutions using Google Cloud technology. The effort is expected to support scientific innovation and improve operational performance.
Merck & Co., Inc. (NYSE:MRK) is a global healthcare company that provides health solutions through prescription medicines, including biologic therapies, vaccines, and animal health products. Its Pharmaceutical segment includes human health pharmaceutical and vaccine products.
1. Walmart Inc. (NASDAQ:WMT)
Number of Hedge Fund Holders: 114
On April 22, Morgan Stanley raised its price recommendation on Walmart Inc. (NASDAQ:WMT) to $140 from $135. It reiterated an Overweight rating on the shares. After meetings with management, including President and CEO John Furner and EVP and CFO John David Rainey, the firm said Walmart continues to benefit from its scale and technology. It also noted that the third-party marketplace and membership offerings are “running strong.”
On April 16, Walmart said it is expanding its Better Care Services platform. The aim is to better support customers looking for weight management and overall health solutions by bringing virtual care, nutrition guidance, and pharmacy access into one place. The platform now includes services for people using or considering GLP-1 therapies. It also offers access to medications through Walmart’s nationwide pharmacy network, including options like Foundayo.
It connects users with providers such as Aaptiv, Berry Street, Curai Health, MyCare by Twin Health, and Wheel. These services include fitness programs, dietitian support, AI-driven coaching, and telehealth care. Prescription fulfillment is handled through Walmart Pharmacy, with integrations such as LillyDirect. Additional tools, including the Nutrition Hub and an updated GLP-1 section on Walmart.com, are designed to support healthier lifestyle choices.
Walmart Inc. (NASDAQ:WMT) is a technology-powered omnichannel retailer. It operates retail and wholesale stores and clubs, along with eCommerce websites and mobile apps, across the United States, Africa, Canada, Central America, Chile, China, India, and Mexico. The company reports through three segments: Walmart U.S., Walmart International, and Sam’s Club U.S.
While we acknowledge the potential of WMT as an investment, 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 WMT and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Monthly Dividend Stocks To Buy and 10 Best US Stocks to Invest In for Long Term
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
