Fed Caution Ahead: 5 Low-Volatility Stocks to Buy for 2026
ZACKS·2025-12-29 17:16

Core Insights - The Federal Reserve has reduced interest rates by 25 basis points, bringing the federal funds rate to a target range of 3.5% to 3.75% [1] - The transition in leadership at the Federal Reserve in 2026 introduces uncertainty regarding future interest rate policies [4][5][8] Consumer Staples and Utilities Sector - Stocks in the Zacks Consumer Staples and Utilities sectors are recommended due to their lower volatility amid current market uncertainty [2][9] - Notable consumer staples stocks include Monster Beverage (MNST) and Mama's Creations, Inc. (MAMA), both rated Zacks Rank 1 (Strong Buy) [2][11] - Utilities stocks such as Dominion Energy (D), Ameren Corporation (AEE), and Sempra Energy (SRE) hold Zacks Rank 2 (Buy) and are expected to perform well [2][11] Low-Beta Stocks - The highlighted stocks are categorized as low-beta stocks, indicating they are less volatile compared to the broader market [3][12] - These stocks are projected to show earnings growth in 2026, supported by favorable Zacks Ranks [3] Individual Stock Performance - Monster Beverage: - Beta of 0.48, long-term earnings growth of 16.81%, and 2026 sales estimate of $9 billion reflecting a growth of 9.48% [16][17] - Mama's Creations: - Beta of 0.79, long-term earnings growth of 4.35%, and 2026 sales estimate of $218.2 million reflecting a growth of 26.49% [18][19] - Dominion Energy: - Beta of 0.70, long-term earnings growth of 10.26%, and 2026 sales estimate of $16.48 billion reflecting a growth of 5.14% [20][21] - Ameren Corporation: - Beta of 0.57, long-term earnings growth of 8.52%, and 2026 sales estimate of $9.71 billion reflecting a growth of 6.33% [22][23] - Sempra Energy: - Beta of 0.73, long-term earnings growth of 7.33%, and 2026 sales estimate of $14.74 billion suggesting growth of 8.5% [24][25]