In this article, we will take a look at the 5 Safe Stocks to Buy for the Long Term in 2026. For deeper discussion and analysis, read 10 Safe Stocks to Buy for the Long Term in 2026.
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5. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 94
On May 27, Mizuho raised the firm’s price recommendation on Exxon Mobil Corporation (NYSE:XOM) to $175 from $159. It reiterated a Neutral rating on the shares. The firm said it expects the impact of the Iran crisis on global oil prices and refining cracks to last longer than previously expected. Mizuho raised its 2026 and 2027 oil price outlooks by 25% and 6%, respectively. It also increased its forecasts for US refining cracks by 61% and 51%. According to the analyst, the recent pullback in stock valuations, despite elevated commodity prices, is creating opportunities for investors looking to generate “alpha” in the US oil and gas sector. The firm also adjusted ratings and price targets across the group.
On May 26, Barclays analyst Betty Jiang raised the firm’s price goal on XOM to $182 from $163 and kept an Overweight rating on the shares. The firm said declining inventories, reduced OPEC spare capacity, and a “muted” U.S. production response to the Middle East conflict are contributing to a tighter oil market backdrop that is not fully reflected in energy stocks. The analyst added in a research note that this environment could lead to a share re-rating for more “oily” exploration and production companies after the conflict. Barclays also lowered its gas price outlook because of near-term oversupply and adjusted ratings and price targets across the integrated oil and exploration and production sector.
Exxon Mobil Corporation (NYSE:XOM) is an energy provider and chemical manufacturer. The company’s main operations include the exploration and production of crude oil and natural gas, along with the manufacturing, transportation, trade, and sale of petroleum products, petrochemicals, and specialty products.
4. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 97
On May 26, BofA raised the firm’s price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $135 from $114. It reiterated a Buy rating on the shares. The analyst said Cisco’s recent fiscal Q3 results, along with management’s comments about continued strong demand for Acacia, support a positive view on the underlying demand environment for optical networking.
On May 15, HSBC upgraded CSCO to Buy from Hold. It raised its price target on the stock to $137 from $77. As previously reported, the firm said the company delivered a “modest” beat in fiscal Q3, though new AI orders shifted the conversation around future growth. Management expects FY27 AI revenue to reach at least $6B, which implies roughly 50% year-over-year growth, the analyst told investors. HSBC said stronger momentum in AI infrastructure and improved earnings visibility were key reasons behind the rating upgrade and higher price target.
Cisco Systems, Inc. (NASDAQ:CSCO) designs and sells a range of technologies that power the internet. The company is integrating its product portfolios across networking, security, collaboration, applications, and cloud services.
3. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 130
On May 27, Bernstein raised the firm’s price target on UnitedHealth Group Incorporated (NYSE:UNH) to $492 from $444 and maintained an Outperform rating on the shares. The new target implies 27% upside potential. The firm said the higher price target reflects an improved adjusted EPS outlook tied to a recovery in Medicare Advantage, along with higher target multiples. Bernstein believes the company’s projected 16% adjusted EPS CAGR supports a higher valuation multiple during this cyclical recovery phase.
On May 26, Barclays raised its price target on UNH to $429 from $373 and kept an Overweight rating on the shares. The firm said it believes the stock movements across managed care companies following Q1 earnings reports are “durable.” Barclays added that it continues to favor managed care companies over healthcare facilities, noting that inflation and commercial mix are becoming larger sources of earnings risk for providers. The firm also adjusted ratings and price targets across the sector.
UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare and well-being company. Its businesses include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare.
2. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 132
On May 26, BofA raised the firm’s price recommendation for Eli Lilly and Company (NYSE:LLY) to $1,251 from $1,133. It reiterated a Buy rating on the shares. The firm said it expects Lilly’s future revenue and profit growth to be driven by a doubling of GLP-1 U.S. market sales by 2033, the analyst told investors.
In separate news, Reuters reported on May 21 that Eli Lilly said its experimental obesity drug helped patients lose more than 28% of their weight over an 18-month period in a key clinical trial. The results could allow the company to seek regulatory approval and potentially launch the next-generation treatment next year.
The results were largely in line with Wall Street expectations and could position retatrutide as one of the most powerful weight-loss drugs in the growing obesity treatment market, where Lilly competes with Novo Nordisk.
Eli Lilly and Company (NYSE:LLY) is a medicine company that discovers, develops, manufactures, and markets pharmaceutical products through a single business segment focused on human pharmaceuticals.
1. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 173
On May 27, Broadcom Inc. (NASDAQ:AVGO) announced a partnership with Samsung Electronics to introduce a new broadband-focused reference platform for the global fixed wireless access (FWA) market. The platform combines Broadcom’s BCM6776 Wi-Fi 8 System-on-Chip (SoC) with Samsung’s B1320 5G Modem.
The companies said the platform is the first to bring together 3GPP Release 17 connectivity and the emerging Wi-Fi 8 (IEEE 802.11bn) standard. With broadband demand continuing to grow worldwide, the new platform is designed to improve reliability and deliver more stable network performance.
Broadcom and Samsung said the platform was built with large-scale deployment in mind. It offers mobile operators a cost-effective way to provide fiber-like broadband services while supporting faster service development and wider ecosystem expansion. Several major original equipment manufacturers (OEMs) are already integrating the B1320 and BCM6776 platform into their next-generation gateway products, according to the companies.
Broadcom Inc. (NASDAQ:AVGO) develops semiconductors and infrastructure software for organizations handling complex and mission-critical technology operations.
While we acknowledge the potential of AVGO 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 AVGO and that has 100x upside potential, check out our report about the cheapest AI stock.
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