In this piece, we will discuss the 7 Low-Risk High-Reward Stocks to Buy Now.
Based on Reuters’ recent report, market selling pressure may be losing strength.
Last week, volatility-linked and systematic strategies sold $24 billion worth of stocks, Reuters reported on April 8, 2026. With this, total selling since early March has reached $108 billion, according to Nomura, reflecting dampened sentiment amid the U.S.-Iran conflict, rising oil prices, and heightened volatility. Reuters added that their stock exposure now sits at a very low level by historical standards. In the past, only 20% of observations showed lower positioning.
Reuters emphasized these strategies sell into turbulence, intensifying the selling pressure. However, these strategies do have limitations. Once much of the risk gets priced in, these strategies can no longer drive the market lower.
Therefore, systematic strategies may potentially become net buyers of roughly $20 billion in equities by early May, according to Nomura’s models. The assumption is that volatility would either ease or stay at around current levels.
Yet Joanna Wang, Nomura cross-asset and equity derivatives strategist, reiterated that the current outlook remains more neutral, but not yet favorable.
With this background in mind, we now turn to our list of the best low-risk stocks, identifying stocks that offer the lowest risk as well as high reward potential.
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Our Methodology
To curate our list of the best low-risk, high-reward stocks, we began by screening publicly traded companies, selecting those with an equity beta below 1.0 to ensure relatively low market risk.
Next, we filtered out stocks with a projected upside of 45%-50%, indicating strong return prospects. To further validate investor confidence, we assessed hedge fund sentiment using Insider Monkey’s database, which tracks over 1,000 elite hedge funds as of the end of Q4 2025. The final list is ranked in ascending order based on the number of hedge funds holding each stock.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
7. CoStar Group, Inc. (NASDAQ:CSGP)
CoStar Group, Inc. (NASDAQ:CSGP) secures a spot on our list of the best low-risk high-reward stocks.
As of April 10, 2026, 76% of covering analysts maintain bullish ratings on CoStar Group, Inc., with the $60 consensus price target implying roughly 60% upside.
There have been a number of cuts to CoStar’s price target in recent weeks. In mid-March, George Tong, a Goldman Sachs analyst, reduced the firm’s price target for CoStar Group, Inc. to $63 from $73 on March 19, 2026, while reiterating a “Buy” rating.
According to the analyst, Homes.com traffic has slowed down, with 8% fewer unique visitors in February compared to the previous year, putting more strain on residential revenue. Apartments.com traffic, on the other hand, continued to be comparatively healthy, providing some portfolio support.
Additionally, Goldman stated that while lower investment spending should contribute to a significant increase in EBITDA margin through 2028, slower booking trends and potential disclosure adjustments may raise questions about revenue transparency and short-term growth.
Therefore, investors may face a less obvious growth picture in the near future, even though CoStar Group, Inc.’s long-term margin profile remains appealing. Accordingly, analysts still see CoStar as a preferred name in the growing commercial real estate segment.
At the time of writing, analysts from BTIG, Baird, and Stephens have also lowered their price targets on the stock over the last couple of days. However, these analysts have maintained their Buy/Outperform ratings.
CoStar Group, Inc. is known for providing commercial real estate analytics and online marketplaces. It operates several platforms, including CoStar Property, CoStar Markets, CoStar Leasing, CoStar Sales, Homes.com, and LoopNet. Through these platforms, it delivers services around unique property types, including office, industrial, retail, multifamily, hospitality, and student housing. The company has recently been making layoffs across the organization amid an AI push.
6. Compass, Inc. (NYSE:COMP)
Compass, Inc. (NYSE:COMP) is included in our list of the best low-risk high-reward stocks.
As of April 10, 2026, Compass, Inc. remains a good stock to buy, with all covering analysts remaining bullish. The $14.00 price target implies a roughly 91% upside potential. So far in 2026, Compass stock has fallen over 30%, while the industry has slid roughly 20%.
Wells Fargo trimmed its price target on Compass, Inc. from $12 to $9 on April 6, 2026, while maintaining an “Equal Weight” rating. The firm stated that agent checks at the end of the first quarter were positive and indicated another quarter of strong net additions. However, due to weaker macro conditions, the firm slightly reduced its Q1 revenue outlook.
Meanwhile, Compass, Inc. was initiated by analysts at Benchmark on March 26, when the firm’s price target was set at $14 with a “Buy” rating. The analyst’s bullish sentiment reflects expectations that the housing market may finally recover following a long period of weak activity. Even if mortgage rates remain elevated, the analysts argue that pent-up demand, rising inventory, and potentially lower home prices could help the industry bounce back.
Compass, Inc. is a technology-led residential real estate brokerage firm. It operates mobile apps and online platforms such as CIRE and Compass to deliver services such as cloud-based CRM, marketing, client service, and title & settlement services. It also enables consumer-grade user interfaces, insightful dashboards, and reporting.
5. Guidewire Software, Inc. (NYSE:GWRE)
Guidewire Software, Inc. (NYSE:GWRE) secures a spot on our list of the best low-risk high-reward stocks.
As of April 10, 2026, valuation pressure across the software sector continues to weigh on analyst sentiment toward Guidewire Software, Inc.. Despite the company’s solid operating execution, Citi expressed caution on the company’s near-term outlook. Adopting a more selective approach within the application software group, the firm remains underweight on the group.
As for Guidewire Software, Inc., Citi reiterated its “Neutral” rating with a reduced price target of $137 (from $178). The firm cited a lack of catalysts in the group for the next twelve months.
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Earlier last month, the investment firm had also trimmed its price target on Guidewire Software, Inc. from $245 to $178. This came despite the company’s strong performance in the latest quarter, which showed a modest acceleration in ARR growth. However, the software group’s weakness prompted the firm to reduce its price target. For similar reasons, RBC Capital also trimmed its price target from $300 to $250 following the company’s Q2 results, while it maintained its “Outperform” rating on the stock.
Guidewire Software, Inc. offers a cloud-based platform for property and casualty (P&C) insurers worldwide. The platform provides several applications, such as PolicyCenter, ClaimCenter, and BillingCenter, that facilitate core operations for P&C insurance companies. Other offerings include Guidewire Rating Management, Guidewire InsuranceNow, Guidewire Reinsurance Management, Guidewire Client Data Management, and more.
4. Zillow Group, Inc. (NASDAQ:Z)
Zillow Group, Inc. (NASDAQ:Z) earns a spot on our list of the best low-risk high-reward stocks.
Analyst sentiment around Zillow Group, Inc. remains divided as of April 10, 2026, with several analysts holding mixed views on the stock. Yet the $75.00 consensus price target implies an 88% upside.
On March 25, 2026, Zillow Group, Inc. announced that the company’s new Zillow Preview feature had attracted 24 additional brokerage partners within one week of its introduction. This is expected to expand the reach of pre-market listings on both Zillow and Trulia.
In addition to earlier partners like Keller Williams and RE/MAX, the feature has added new partners, including Engel & Völkers, Leading Real Estate Companies of the World, and several regional brokerages. According to Zillow Group, Inc., the feature uses its audience to increase exposure and interaction while providing sellers, brokers, and buyers with earlier, more transparent access to listings.
Zillow Group, Inc. emphasized its commitment to providing a more transparent, customer-focused home-shopping experience, as Zillow Preview is expected to create revenue-sharing opportunities for listing agents at no additional expense to consumers.
Zillow Group, Inc., previously known as just Zillow, provides real estate and home-related information marketplaces. The company was founded by Richard Barton and co-founded by Lloyd Frink and Spencer Rascoff.
3. Builders FirstSource, Inc. (NYSE:BLDR)
Builders FirstSource, Inc. (NYSE:BLDR) secures a spot on our list of the best low-risk high-reward stocks.
As of April 10, 2026, 52% of covering analysts maintain bullish views on Builders FirstSource, Inc.. Meanwhile, the consensus price target of $124.00 implies an upside of over 45%.
As of April 10, 2026, the stock has declined more than 28% over the previous year, reaching its 52-week low of $78.22. At the same time, the Building Products & Equipment industry gained over 25% over the same period, reflecting the company’s lack of growth acceleration.
Amid that soft share price momentum, Stifel reduced its price target on Builders FirstSource, Inc..
On March 16, 2026, Stifel analyst W. Andrew Carter lowered Builders FirstSource, Inc.’s price target from $115 to $93, while reiterating a “Hold” rating. The firm’s analyst emphasized its long-term bias, which remains positive. However, he highlighted the need for accelerated growth. Accordingly, Carter maintained the firm’s forecasts, which sit near the bottom of the company’s own guidance. The firm’s model assumes that U.S. single-family home construction in 2026 will be unchanged, not significantly stronger.
While Stifel remains positive on the company’s longer-term outlook, the near-term forecasts remain soft amid an unlikely near-term acceleration in construction growth.
Builders FirstSource, Inc. supplies and manufactures building materials and components, alongside construction services to professional homebuilders, sub-contractors, remodelers, and customers.
2. Intuit Inc. (NASDAQ:INTU)
Intuit Inc. (NASDAQ:INTU) features in our list of the best low-risk high-reward stocks.
As of April 7, 2026, 85% of covering analysts remain positive on Intuit Inc., and the $580.00 consensus price target implies a 65% upside. That sentiment remains even as share momentum stays weak. The stock has declined roughly 40% in the past year, while plunging over 45% in the last six months.
Meanwhile, on March 26, 2026, Freedom Capital Markets reduced its price target for Intuit Inc. to $600 from $820, while keeping a “Buy” rating. The firm stated that the company’s second-quarter fiscal 2026 performance came out better than management and the firm had expected. Following the earnings release, optimism increased around the firm’s roughly 8% FY26 growth outlook.
Prior to this, on March 19, 2026, Morgan Stanley named Intuit Inc., among its top picks within coverage, citing the stock’s favorable valuation amid the possibility of stronger top-line growth driven by two product cycles.
Additionally, the firm stated that while recent online traffic data indicate positive business trends, fiscal Q3 results could provide improved visibility into tax-season momentum and possible estimate revisions.
Intuit Inc. provides financial management, payments & capital, compliance, and marketing products and services in the US. The company is known for its products, TurboTax, Credit Karma, QuickBooks, and Mailchimp. The company operates in four segments: Global Business Solutions, Consumer, Credit Karma, and ProTax.
1. Boston Scientific Corporation (NYSE:BSX)
Boston Scientific Corporation (NYSE:BSX) is included in our list of the best low-risk high-reward stocks.
As part of the firm’s Q1 preview for medical technology and life science tools firms, Evercore ISI analyst Vijay Kumar reduced the firm’s price target on Boston Scientific Corporation to $80 from $96 on April 6, 2026, while maintaining an “Outperform” rating.
On March 30, 2026, following the release of the firm’s clinical trial data, RBC Capital reaffirmed an “Outperform” rating and a $115 price target for Boston Scientific. The firm expects 30% year-over-year growth in 2026, 10 percentage points higher than management guidance. Thus, Boston Scientific remains a good stock to buy.
Meanwhile, the company’s AsurysTM Fluid Management System came into the spotlight recently.
The system, intended to enhance irrigation and regulate intrarenal pressure during urologic procedures like ureteroscopy, received 510(k) clearance from the U.S. Food and Drug Administration. Boston Scientific Corporation announced this on the same day as RBC Capital’s update.
Based on Boston Scientific Corporation’s pressure data, the system may control fluid flow in real time, thereby reducing problems and enhancing workflow efficiency and physician visualization. It also allows scope-based irrigation control and integrated pressure monitoring when used with the LithoVue Elite ureteroscope.
Despite more cautious near-term analyst views, the launch expands Boston Scientific’s StoneSmart portfolio.
Boston Scientific Corporation is a global medical technology leader that develops, manufactures, and markets less-invasive medical devices used in interventional specialties, including cardiology, peripheral interventions, electrophysiology, endoscopy, and urology. Their products, such as stents, pacemakers, and imaging systems, are used by healthcare professionals worldwide to diagnose and treat various diseases.
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