In this article, we will take a look at 14 safe stocks to buy now for a starter stock portfolio.
Global stock markets have continued to struggle as oil prices surged to their highest weekly spike in six years, with no signs of an imminent end to the Middle East conflict. The declines were made worse by steep drops on Wall Street, with the S&P 500 and Dow Jones indexes falling roughly 1.1% after European markets closed on March 6.
Nonfarm payrolls unexpectedly declined by 92,000 in February, falling far short of projections for the US to generate 55,000 jobs for the month. The unemployment rate also increased to 4.4%. Notably, this weakening job market and rising oil costs linked to the Middle East unrest have once again sparked concerns about stagflation.
Lauren Goodwin, economist and portfolio strategist at New York Life Investments, described these numbers as challenging. She also added the following:
“With a market that has been digesting risks related to stagflation, higher energy prices, and inflation risks related to the war in Iran, certainly concerns about where the labor market may be going with respect to AI … this is only going to reinforce those positions.”
The overall market sentiment remains cautious, with investors keeping an eye on shifting events in the current conflict and their possible implications for international trade, supply chains, inflation, and monetary policy projections.
Source:unsplash
Our Methodology
For this list, we sifted through ETFs, such as the iShares S&P 500 ETF, and picked blue-chip stocks with low beta (<1) and robust businesses, making them ideal for a starter stock portfolio. These stocks are also popular among analysts and elite hedge funds.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14. McDonald’s Corporation (NYSE:MCD)
McDonald’s Corporation (NYSE:MCD) ranks among the 14 safe stocks to buy now for a starter stock portfolio. On March 6, Tigress Financial Partners boosted its price target for McDonald’s Corporation (NYSE:MCD) to $385 while upholding a Buy rating on the company’s shares. The firm referenced the company’s multi-year growth strategy, which uses its global brand, unit scaling, digital and loyalty framework, AI-driven efficiency, and franchise model to increase sales and income.
McDonald’s fourth-quarter and full-year 2025 statistics indicate value-driven traffic and franchise development, while the Caviar campaign boosts brand engagement. The company announced EPS of $3.12 for the quarter, exceeding the forecast of $3.03 by 2.97%. Revenue also surpassed forecasts, coming in at $7.01 billion versus $6.81 billion, representing a 2.94% surprise.
Tigress Financial added that McDonald’s Accelerating the Arches growth driver is powered by its digital creativity and loyalty scale.
McDonald’s Corporation (NYSE:MCD) operates one of the largest foodservice networks in the world. Its business is divided into the US, International Operated Markets, and International Developmental Licensed Markets & Corporate segments.
13. AbbVie Inc. (NYSE:ABBV)
AbbVie Inc. (NYSE:ABBV) ranks among the 14 safe stocks to buy now for a starter stock portfolio. On February 24, RBC Capital began coverage of AbbVie Inc. (NYSE:ABBV) with an Outperform rating and a price target of $260. While mainstream opinion appears to be catching up on the company’s Skyrizi and Rinvoq sales, the firm states that AbbVie Inc. (NYSE:ABBV) still remains in the early stages of expansion and will continue to exceed.
RBC Capital warned that investors are overlooking long-term growth, noting that this decade has no substantial loss-of-exclusivity scenarios that do not rely on mergers and acquisitions.
The company claims that AbbVie Inc. (NYSE:ABBV) is trading at under 16x earnings, which puts it closer to pharma firms that are experiencing a significant loss of exclusivity incidents compared to high-growth companies. At the same time, AbbVie Inc. (NYSE:ABBV) is producing impressive earnings-per-share growth of about 17%, compared to competitors’ 6%.
AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical company that researches & develops, manufactures, commercializes, and sells medicines and therapies worldwide.
12. Walmart Inc. (NASDAQ:WMT)
Walmart Inc. (NASDAQ:WMT) ranks among the 14 safe stocks to buy now for a starter stock portfolio. Tigress Financial boosted its price target for Walmart Inc. (NASDAQ:WMT) to $150 on February 25 (previous target unspecified), while retaining a Buy rating. The firm referenced Walmart’s transition from a conventional brick-and-mortar store to a technology-driven omnichannel customer platform.
Walmart Inc. (NASDAQ:WMT) reported solid fourth-quarter and full-year fiscal 2026 earnings, boosted by e-commerce, retail advertising, and membership growth, as well as margin expansion driven by mix and productivity. E-commerce grew by 27% in the quarter, with online sales proving more profitable.
Tigress Financial explained how many of Walmart’s major U.S. growth engines can be applied abroad through its International and Sam’s Club businesses. Furthermore, the company’s advertising and digital media platform, led by Walmart Connect, is fast expanding and has evolved into a high-margin, capital-light development engine.
Walmart Inc. (NASDAQ:WMT) operates as a technology-powered omnichannel retailer. The company operates retail and wholesale stores and clubs, as well as e-commerce websites and mobile apps.
11. AstraZeneca PLC (NASDAQ:AZN)
AstraZeneca PLC (NASDAQ:AZN) ranks among the 14 safe stocks to buy now for a starter stock portfolio. Morgan Stanley boosted its price target for AstraZeneca PLC (NASDAQ:AZN) to $109 from $104, keeping an Overweight rating on the company’s shares. The firm adjusted its predictions following the company’s fiscal year 2025 results, making slight modifications to revenue and operating profit projections for the coming years.
The company’s 2026 revenue projection is mid-single-digit to high-single-digit growth, with earnings per share rising in the low double digits.
AstraZeneca PLC (NASDAQ:AZN) is trading at 18 times the projected price-to-earnings ratio for fiscal year 2026, which translates to a 40% premium over the overall sector. Morgan Stanley believes the multiple is justified considering the stronger topline-driven earnings growth forecast of 12% against 6% for the sector from 2026 to 2029.
AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company that explores, develops, manufactures, and commercializes prescription medicines. It supplies its products and services to specialty and primary care physicians and is exploring novel immuno-oncology treatment approaches.
10. RTX Corporation (NYSE:RTX)
RTX Corporation (NYSE:RTX) ranks among the 14 safe stocks to buy now for a starter stock portfolio. Following the US Department of Defense’s announcement that it had authorized Egypt’s $4.7 billion purchase of National Advanced Surface-to-Air Missile Systems (NASAMS), Jefferies reaffirmed its Hold rating and $225 price target for RTX Corporation (NYSE:RTX) on March 6. The transaction includes hundreds of missiles, scores of guidance units, and four AN/MPQ-64F1 Sentinel radar systems.
Additionally, through the end of the decade, the company’s Air Warfare Systems division, which also includes AMRAAM and Tomahawk, is expected to grow at a high single-digit rate.
According to Jefferies, each percentage point of growth in Air Warfare is equivalent to one cent toward 2027 earnings per share of $7.40, or 1% of the total.
RTX Corporation (NYSE:RTX) is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. It operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.
9. Merck & Co. Inc. (NYSE:MRK)
Merck & Co. Inc. (NYSE:MRK) ranks among the 14 safe stocks to buy now for a starter stock portfolio. On March 2, Leerink Partners boosted its price target for Merck & Co. Inc. (NYSE:MRK) to $129 from $128, with an Outperform rating, highlighting potential upside for the company’s cancer medicine belzutifan. The firm stated that belzutifan has been an underrated growth engine for Merck.
In fiscal year 2025, Merck & Co. Inc. (NYSE:MRK) recorded $603 million in sales of monotherapy belzutifan for late-line treatment in the US, with a further $113 million in sales outside the country. The drug’s highest sales are estimated by consensus to be around $2.6 billion, with about $1.6 billion coming from the US.
According to Leerink, belzutifan-based regimens showed promising results in the Phase 3 LITESPARK-011 and LITESPARK-022 studies for adjuvant clear cell renal cell carcinoma and post-PD(L)1. The firm anticipates that the second-line belzutifan plus lenvatinib pair will be widely utilized by the FDA PDUFA time frame in October 2026.
Merck & Co. Inc. (NYSE:MRK) is a healthcare company that offers human health pharmaceuticals, veterinary pharmaceuticals, vaccines & health management solutions and services.
8. Bristol-Myers Squibb Company (NYSE:BMY)
Bristol-Myers Squibb Company (NYSE:BMY) ranks among the 14 safe stocks to buy now for a starter stock portfolio. On February 23, Piper Sandler boosted its price target for Bristol-Myers Squibb Company (NYSE:BMY) to $75 from $66 while keeping an Overweight rating on the company’s shares. The firm outlined two avenues for the pharma giant’s comeback to top-line growth after the loss of exclusivity for Eliquis in the US in 2028.
The first option is the efficacy of milvexian in the LIBREXIA AF study for atrial fibrillation. At the same time, the second track comprises pipeline progress, including label upgrades for Cobenfy, admilparant, CELMoD treatments such as iberdomide and mezigdomide, and ryz101.
Meanwhile, RBC Capital launched coverage of Bristol-Myers Squibb Company (NYSE:BMY) with a Sector Perform rating and a $60 price target. According to the firm, Bristol-Myers has the most extensive Phase 3 pipeline among large-cap pharma companies.
Bristol-Myers Squibb Company (NYSE:BMY) is a global biopharmaceutical company focused on discovering, developing, and delivering medicines for patients with serious diseases, including cancer, blood disorders, immune conditions, cardiovascular disease, and neurological disorders.
7. Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson (NYSE:JNJ) ranks among the 14 safe stocks to buy now for a starter stock portfolio. On March 2, BofA Securities boosted its price target for Johnson & Johnson (NYSE:JNJ) to $253 from $227, while keeping a Neutral rating on the company’s shares. The firm raised its revenue expectations for Johnson & Johnson (NYSE:JNJ) to reflect new perspectives on near-to-market pipeline products, including Tecvayli for multiple myeloma and Inlexzo for bladder cancer.
The adjustments improve the firm’s revenue predictions for 2027 and 2032 by 1% to 6%, raising the five-year CAGR to 4.6% from 4.0%. Moreover, the revision raises the firm’s non-GAAP earnings per share forecast for fiscal 2027 by roughly 20 cents.
In a separate instance, Johnson & Johnson (NYSE:JNJ) has submitted a second Biologics License Application to the FDA for IMAAVY, intended to treat warm autoimmune hemolytic anemia, a health issue for which no FDA-approved therapies exist.
Johnson & Johnson (NYSE:JNJ) is a diversified healthcare company. It operates through three main segments: Innovative Medicine, MedTech, and Consumer Health. Its product range includes pharmaceuticals and medical devices, as well as widely recognized consumer brands.
6. Linde plc (NASDAQ:LIN)
Linde plc (NASDAQ:LIN) ranks among the 14 safe stocks to buy now for a starter stock portfolio. Linde plc (NASDAQ:LIN) ranks among the 14 safe stocks to buy now for a starter stock portfolio. Bernstein SocGen Group retained its Outperform rating and $537 price target for Linde plc (NASDAQ:LIN) on February 19, citing the company’s 28th straight quarter of adjusted EPS beats, as well as Linde’s potential for growth in the electronics, healthcare, and space sectors.
Bernstein’s 2026 adjusted EPS estimate of $17.89 is at the upper end of Linde’s projection range of $17.40 to $17.90. That said, the firm sees significant upside volatility to estimates and guidance, independent of macroeconomic factors.
BMO Capital also boosted Linde plc (NASDAQ:LIN)’s price target from $501 to $507, while keeping an Outperform rating on the company’s shares. The firm cited Linde’s robust backlog and price momentum as variables that could offset larger macroeconomic headwinds and a slower-than-expected rollout in a particular project.
Linde plc (NASDAQ:LIN) is an industrial gases and engineering company based in the United Kingdom. It serves a wide range of industries, including chemicals and energy, food and beverage, electronics, healthcare, manufacturing, metals, and mining.
5. The TJX Companies, Inc. (NYSE:TJX)
The TJX Companies, Inc. (NYSE:TJX) ranks among the 14 safe stocks to buy now for a starter stock portfolio. On March 4, UBS reaffirmed its Buy rating on The TJX Companies, Inc. (NYSE:TJX), with a price target of $193. According to the firm, TJX has the potential to capture significant market share from department store rivals in the coming years.
UBS states that TJX’s five-year CAGR in earnings per share is expected to be around 10.5%. The firm believes that a 30x price-to-earnings ratio is justified by this growth expectation.
Additionally, on February 26, Bernstein SocGen Group boosted its price target for The TJX Companies, Inc. (NYSE:TJX) to $175 from $170, maintaining an Outperform rating on the stock. The firm underlined the company’s outstanding year-end performance, including a 5% increase in fourth-quarter comparable sales plus a margin beat.
The TJX Companies, Inc. (NYSE:TJX) reported earnings per share of $1.43 in Q4, which exceeded the expected $1.39. Furthermore, the company exceeded its projected $17.36 billion in revenue, reaching $17.7 billion.
The TJX Companies, Inc. (NYSE:TJX) is the world’s leading off-price retailer, selling brand-name apparel, home fashions, and other goods at discounts compared to department store prices.
4. Exxon Mobil Corporation (NYSE:XOM)
Exxon Mobil Corporation (NYSE:XOM) ranks among the 14 safe stocks to buy now for a starter stock portfolio. Exxon Mobil Corporation (NYSE:XOM) presented its financial outlook at the Morgan Stanley Energy & Power Conference 2026 on March 3, revealing objectives for long-term growth. The company expects a 13% compound annual growth rate in earnings through 2030, with approximately $25 billion in earnings growth and $35 billion in increased operating cash flow over the period.
Exxon Mobil Corporation (NYSE:XOM) indicated that it is geared towards high-return assets such as the Permian Basin and Guyana, where output is expected to increase substantially, with Permian output rising from 1.2 million to 2.5 million barrels per day by 2030.
The company also stated that its financial goals include $20 billion in share buybacks in 2026, sustained dividend growth, and ongoing expense cuts aimed at achieving $20 billion in strategic savings by 2030.
Exxon Mobil Corporation (NYSE:XOM) is an integrated energy company that explores for, produces, and refines oil and natural gas, and operates a large chemical business.
3. AT&T Inc. (NYSE:T)
AT&T Inc. (NYSE:T) ranks among the 14 safe stocks to buy now for a starter stock portfolio. AT&T Inc. (NYSE:T) presented its growth plans at the Morgan Stanley Technology, Media, and Telecom Conference 2026 on March 3, with ambitions to increase its fiber network by the end of 2026, aided in part by the acquisition of fiber assets from Lumen Technologies.
AT&T Inc. (NYSE:T) now has over 36 million total fiber spots and intends to have gained over 40 million by the end of the year, up from 32 million at the end of the previous year. The company also expects to possess over 60 million total fiber spots by 2030, with an additional 5 million spots added each year after 2026.
In addition, AT&T Inc. (NYSE:T) recently reaffirmed its full-year 2026 and multi-year financial expectations following its fourth-quarter 2025 earnings report. The company intends to return $45 billion or more to shareholders in 2026-2028 through dividends and share buybacks.
AT&T Inc. (NYSE:T) is a telecommunications and technology services provider that operates globally. It provides 4G/5G-enabled wireless, fiber ethernet, broadband, managed professional services, and business solutions. It has two distinct segments, i.e., Communications and Latin America.
2. The Progressive Corporation (NYSE:PGR)
The Progressive Corporation (NYSE:PGR) ranks among the 14 safe stocks to buy now for a starter stock portfolio. Goldman Sachs reaffirmed its buy rating and $225 price target for The Progressive Corporation (NYSE:PGR) on February 23 in response to the company’s January 2026 results. The Progressive Corporation (NYSE:PGR) recorded net income of $1.16 billion, up 4% from $1.12 billion in the same month of the previous year. The company’s net premiums written increased 4% to $6.74 billion, while net premiums earned rose 5% to $6.92 billion.
The company’s average earnings per share forecast for 2026–2028 remains unchanged, indicating that a somewhat lower growth outlook is offset by a slightly higher buyback expectation.
Notably, Goldman Sachs considers The Progressive Corporation (NYSE:PGR) to be one of the more appealing investment prospects among property and liability insurers. The firm expects policies in force growth to be 8.1% in 2026, compared to street estimates of 7.3%.
The Progressive Corporation (NYSE:PGR) is an insurance holding company that provides residential property insurance, personal and commercial auto insurance, and other specialty property-casualty insurance and related services.
1. Verizon Communications Inc. (NYSE:VZ)
Verizon Communications Inc. (NYSE:VZ) ranks among the 14 safe stocks to buy now for a starter stock portfolio. Verizon Communications Inc. (NYSE:VZ) discussed its financial strategy on March 2 at the Morgan Stanley Technology, Media, and Telecom Conference 2026, with CEO Dan Schulman referring to a transition from a typical network-engineering approach to a customer-driven approach.
Verizon Communications Inc. (NYSE:VZ) anticipates at least 7% growth in cash flow this year, reaching $21.5 billion. The company aims to increase net postpaid phone subscriptions by 750,000-1 million and broadband net additions by more than 1 million, while lowering churn by at least 5 basis points. To boost shareholder returns, the communications giant anticipates annual dividend increases and a $25 billion share repurchase program spanning three years.
Moreover, Schulman stated that the acquisition of Frontier Communications will broaden Verizon’s fiber footprint and enable packaged broadband and wireless services, which can reduce dropouts by approximately 40%.
Verizon Communications Inc. (NYSE:VZ) is a leading provider of technology, entertainment, and communication services worldwide.
While we acknowledge the potential of VZ 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 VZ and that has 100x upside potential, check out our report about this cheapest AI stock.
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