In this article, we will list the 5 Best Low Risk Stocks to Buy in 2026. Please visit 10 Best Low Risk Stocks to Buy in 2026 to see the extended list and the methodology behind it.
5. The Home Depot Inc. (NYSE:HD)
Number of Hedge Fund Holders: 98
The Home Depot Inc. (NYSE:HD) is one of the best low risk stocks to buy in 2026. On May 19, The Home Depot reported Q1 2026 sales of $41.8 billion, representing a 4.8% increase year-over-year. Comparable sales ticked up by 0.6% globally and 0.4% in the US, with foreign exchange rates providing a 55 basis point benefit. CEO Ted Decker noted that underlying business demand matched expectations despite ongoing consumer uncertainty and housing affordability pressures.
Net earnings for the quarter were $3.3 billion, or $3.30 per diluted share, down slightly from $3.4 billion ($3.45 per share) in the prior year’s Q1. On an adjusted non-GAAP basis, diluted EPS came in at $3.43, compared to $3.56 in Q1 2025.
The company reaffirmed its full-year 2026 guidance, forecasting total sales growth between 2.5% and 4.5% and comparable sales performance ranging from flat to a 2.0% increase. The Home Depot Inc. (NYSE:HD) expects to open approximately 15 new stores, maintain an operating margin of 12.4% to 12.6%, and achieve flat to 4.0% growth in both GAAP and adjusted diluted EPS.
The Home Depot Inc. (NYSE:HD) is a home improvement specialty retailer.
4. Merck & Co. Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 100
Merck & Co. Inc. (NYSE:MRK) is one of the best low risk stocks to buy in 2026. On May 18, Merck announced that its pivotal Phase 3 TroFuse-005 trial evaluating sacituzumab tirumotecan (sac-TMT) met its dual primary endpoints of overall survival/OS and progression-free survival/PFS in patients with advanced or recurrent endometrial cancer. The investigational TROP2-directed antibody-drug conjugate, developed in collaboration with Kelun-Biotech, is the first global Phase 3 trial to show statistically significant improvements in OS and PFS compared to standard chemotherapy in this patient population.
The pre-specified interim analysis demonstrated clinically meaningful efficacy against the physician’s choice of treatment (doxorubicin or paclitaxel) for individuals whose disease progressed following platinum-based chemotherapy and anti-PD-1/L1 immunotherapy. The trial also achieved its key secondary endpoint of objective response rate, maintaining a safety profile consistent with prior sac-TMT studies with no new safety signals.
This milestone represents the first positive Phase 3 data from Merck & Co. Inc.’s (NYSE:MRK) expansive TroFuse clinical development program. The ongoing program encompasses 17 global Phase 3 trials across multiple tumor types (including bladder, breast, cervical, and non-small cell lung cancers) and aims to establish the therapy as a cornerstone treatment in both early and late-stage disease settings.
Merck & Co. Inc. (NYSE:MRK) is a healthcare firm that provides health solutions, vaccines, biologic therapies, animal health, and more. It operates in pharmaceuticals, animal health, and other segments.
3. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 104
Johnson & Johnson (NYSE:JNJ) is one of the best low risk stocks to buy in 2026. On May 5, Johnson & Johnson announced positive results from the first clinical study of its investigational OTTAVA Robotic Surgical System. The findings from the prospective, multicenter FORTE study evaluating the system in Roux-en-Y gastric bypass procedures were presented at the 2026 American Society for Metabolic and Bariatric Surgery/ASMBS Annual Meeting.
In the 30-patient cohort, the study met its primary safety and performance endpoints through 30 days post-procedure, with investigators completing all surgeries robotically without converting to a non-robotic approach. The trial also showed the viability of the system’s novel architecture within space-constrained operating rooms. The system was successfully used across six hospitals, including multiple rooms historically considered too small or challenging for standard robotic setups.
Backed by these clinical and preclinical data, Johnson & Johnson (NYSE:JNJ) submitted an application to the US FDA for De Novo classification. The submission targets a general surgery indication covering multiple procedures within the upper abdomen, including gastric bypass, gastric sleeve, small bowel resection, and hiatal hernia repair.
Johnson & Johnson (NYSE:JNJ) is a global healthcare company that researches, develops, and manufactures pharmaceuticals and MedTech products. It focuses on treating complex diseases, advancing surgical care, and improving patient outcomes in areas such as cancer, immunology, and orthopedics.
2. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 115
Alibaba Group Holding Limited (NYSE:BABA) is one of the best low risk stocks to buy in 2026. On May 20, Alibaba Group unveiled its new Zhenwu M890 AI chip, developed by its T-Head subsidiary to provide a domestic alternative to Nvidia processors amid tightening US export curbs. The chip offers three times the performance of its predecessor and is purpose-built to handle the heavy memory demands of autonomous AI agents.
Alibaba also introduced the Panjiu AL128 server system, which integrates 128 of the new accelerators into a single rack. The system is immediately available to Chinese enterprise clients through Alibaba Cloud’s Bailian platform. T-Head has shipped over 560,000 total Zhenwu units to date across industries like automotive and finance.
To complement the hardware, Alibaba Group Holding Limited (NYSE:BABA) debuted its Qwen 3.7-Max large language model, optimized for complex coding and agent tasks. Supported by a 380 billion yuan (~$53 billion) infrastructure investment, the company also detailed a multi-year roadmap featuring the successor V900 chip in 2027 and the J900 chip in 2028.
Alibaba Group Holding Limited (NYSE:BABA) operates as a technology infrastructure and marketing solutions provider. It operates both within the People’s Republic of China and internationally.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 137
Eli Lilly and Company (NYSE:LLY) is one of the best low risk stocks to buy in 2026. On May 21, Lilly’s Phase 3 TRIUMPH-1 trial evaluated retatrutide, an investigational once-weekly triple hormone receptor agonist (GIP/GLP-1/glucagon). The 80-week study involved 2,339 adults with obesity or overweight and at least one comorbidity, excluding diabetes. All doses met primary and secondary endpoints, showing significant weight loss and improvements in cardiometabolic markers like cholesterol and blood pressure.
At 80 weeks, participants on the 12 mg dose lost an average of 70.3 lbs (28.3%), with 45.3% losing 30% or more. A 104-week extension for those with a BMI ≥ 35 showed the 12 mg dose reached an average loss of 85.0 lbs (30.3%). The 9 mg and 4 mg doses yielded average 80-week weight losses of 25.9% and 19.0%, respectively.
Adverse events were consistent with incretin therapies, primarily causing nausea, diarrhea, constipation, and vomiting. Mild-to-moderate dysesthesia and urinary tract infections were also reported. Discontinuation rates due to side effects were 4.1% for 4 mg, 6.9% for 9 mg, and 11.3% for 12 mg, compared to 4.9% for the placebo.
Eli Lilly and Company (NYSE:LLY) is a healthcare company that develops human pharmaceutical products, including cardiometabolic health, oncology, and immunology products.
While we acknowledge the potential of LLY 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 LLY and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Low Priced Stocks to Buy for the Next 3 Years and 8 Unstoppable AI Stocks to Buy Now.
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