In this article, we will take a look at the 5 Best Long Term Low Risk Stocks to Buy According to Hedge Funds. For deeper discussion and analysis, read 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds.
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5. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 71
5-Year Return: 88.61%
Beta Value: 0.33
On May 10, Morgan Stanley lowered its price recommendation on Gilead Sciences, Inc. (NASDAQ:GILD) to $168 from $175. It reiterated an Overweight rating on the shares. The firm updated its model for the company following the first-quarter earnings report.
On May 8, Truist lifted its price goal on GILD to $157 from $155. It kept a Buy rating on the stock. The analyst said the company delivered first-quarter revenue and earnings results above expectations and also raised its FY26 revenue guidance. According to the research note, the performance was driven by strength in the HIV business, especially Yeztugo. The firm also highlighted management’s comments around early persistence signals. It noted that Yeztugo showed the highest persistence among patients receiving re-treatment in the PrEP setting. Truist described those trends as encouraging and said they remain central to its view that Yeztugo can achieve durable growth toward a potential $7B-plus peak revenue opportunity.
Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company focused on developing medicines to prevent and treat life-threatening diseases. Its areas of focus include HIV, viral hepatitis, COVID-19, cancer, and inflammation.
4. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 86
5-Year Return: 309.7%
Beta Value: 0.77
On May 19, Truist raised its price recommendation on Palo Alto Networks, Inc. (NASDAQ:PANW) to $275 from $200. It reiterated a Buy rating on the shares. The update came as part of a broader research note previewing first-quarter results for cybersecurity software companies. The analyst said investors are still focused on the usual setup-and-beat dynamics ahead of off-cycle quarterly EPS reports. At the same time, the broader discussion around AI disruption is expected to play a major role this earnings season as investors try to identify companies that could benefit from AI versus those that may face risks. For Palo Alto, Truist said investor attention will remain centered on execution following the company’s acquisitions of Chronosphere and CyberArk Software Ltd. The firm also pointed to the underlying organic momentum across Palo Alto’s core platforms.
On May 15, RBC Capital raised its price goal on PANW to $255 from $220. It kept an Outperform rating on the stock. The comments were part of a broader research note previewing quarterly results across the software sector. The analyst said the setup appears favorable for the company because its FY26 guidance was maintained on an organic basis last quarter and could have room to move higher organically in Q4. RBC also noted that the stock has already been a strong relative outperformer.
Palo Alto Networks, Inc. (NASDAQ:PANW) is a global AI cybersecurity company offering a broad portfolio of cybersecurity solutions and platforms across network security, cloud security, security operations, AI, and identity protection.
3. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 87
5-Year Return: 48.66%
Beta Value: 0.36
On May 18, Citigroup analyst Filippo Falorni raised the firm’s price recommendation on The Coca-Cola Company (NYSE:KO) to $91 from $90. It reiterated a Buy rating on the stock. Citi believes Coca-Cola could see a boost in beverage volumes during this summer’s FIFA World Cup. The analyst pointed out that the company is an official tournament partner and is launching what it described as its biggest-ever marketing campaign tied to the event.
During the Q1 2026 earnings call, President and CFO John Murphy said the company still expects organic revenue growth of 4% to 5% for 2026. He also shared that Coca-Cola now expects comparable currency-neutral EPS growth, excluding acquisitions and divestitures, to come in between 6% and 7%.
Murphy said the company now expects comparable earnings per share growth of 8% to 9% compared with $3 in 2025. That is slightly above the earlier guidance range of 7% to 8%, mainly because of a lower effective tax rate. He added that Coca-Cola now expects its 2026 underlying effective tax rate to be 19.9%, down by 1 percentage point from the previous estimate.
Murphy also noted that divestitures are still expected to create about a 4 percentage point headwind to comparable net revenues and around a 1 percentage point drag on comparable earnings per share. He said the outlook assumes the pending sale of Coca-Cola Beverages Africa will close in the second half of 2026.
The Coca-Cola Company (NYSE:KO) operates across several global markets, including Europe, the Middle East and Africa, Latin America, North America, and the Asia Pacific. The company sells a wide range of beverage brands through its various business segments worldwide.
2. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 104
5-Year Return: 32.02%
Beta Value: 0.80
On May 15, Raymond James analyst Patrick O’Shaughnessy raised the firm’s price recommendation on The Charles Schwab Corporation (NYSE:SCHW) to $137 from $126. He reiterated an Outperform rating on the shares. The analyst said the company’s updated financial outlook could lead to another round of positive estimate revisions. He also noted that Raymond James believes the current bear case tied to AI concerns will likely prove overdone.
On the same day, Piper Sandler analyst Patrick Moley raised the firm’s price goal on SCHW to $105 from $103. The analyst kept a Neutral rating on the stock. The firm noted that the shares traded down about 2% that day, even after management raised its revenue outlook, supported by stronger net interest margin expectations heading into year-end. Piper Sandler said management commentary focused on the positive role AI could play in the business. The discussion also pushed back against the AI-driven “cash optimization” concerns that have recently weighed on the stock. The firm further highlighted momentum in advisor services, opportunities in workplace services, and continued strength in Schwab’s self-directed trading and wealth management businesses.
The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company. Through its subsidiaries, the company provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.
1. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 106
5-Year Return: 182.7%
Beta Value: 0.91
On May 19, Oppenheimer analyst Rupesh Parikh raised the firm’s price target on Costco Wholesale Corporation (NASDAQ:COST) to $1,160 from $1,100 and maintained an Outperform rating ahead of quarterly results. The firm said it continues to rank Costco as a top pick and raised its valuation target despite some near-term concerns. Oppenheimer noted that temporary margin pressure tied to fuel could lead to a modest EPS shortfall in the upcoming quarter. Even with the stock no longer trading at a discount, the firm still sees room for strong outperformance. Oppenheimer believes Costco’s defensive business model and strong value offering across both omni-channel retail and fuel should continue helping the company gain market share at an outsized pace. The firm also said there is still potential for a special dividend and/or a stock split, both of which could act as positive catalysts for the shares.
On May 12, Bernstein raised its price target on Costco to $1,192 from $1,170 and kept an Outperform rating on the stock. Bernstein said the first quarter could show very different outcomes across retailers. The firm believes stimulus tied to the “One Big Beautiful Bill Act” may help boost comparable sales for retailers serving higher-income consumers. At the same time, Bernstein noted that fuel pressure, inflation, and lower social transfers could offset some of those gains and may hurt the quality of results for certain companies.
Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and e-commerce platforms offering nationally branded and private-label products across a wide range of categories.
While we acknowledge the potential of COST 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 COST and that has 100x upside potential, check out our report about the cheapest AI stock.
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