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. (NASDAQ:CSGP), 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. (NASDAQ:CSGP) 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. (NASDAQ:CSGP)’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. (NASDAQ:CSGP) 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. (NYSE:COMP) 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. (NYSE:COMP) 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. (NYSE:COMP) 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. (NYSE:COMP) 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.
While we acknowledge the potential of COMP 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 COMP and that has 100x upside potential, check out our report about the cheapest AI stock.
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