3 Must-Buy Low-Beta Stocks Flying High Year to Date With More Upside

Amidst market volatility stemming from trade war concerns, Zacks highlights three "Strong Buy"-rated, low-beta stocks that have significantly outperformed year-to-date: Philip Morris International Inc. (PM), up 44.7% and driven by smoke-free product growth; Sprouts Farmers Market Inc. (SFM), up 32.2% due to strong sales and margin expansion; and Newmont Corp. (NEM), up 40.5% benefiting from growth projects and operational efficiencies. All three companies have seen positive revisions to current-year earnings estimates, suggesting continued upside.

Analysis

The U.S. stock market in 2025 has exhibited mixed performance and heightened volatility, primarily driven by concerns over persistent inflation, Federal Reserve policy uncertainties following a 1% benchmark rate cut last year, and the implementation of reciprocal tariff policies leading to fears of a global trade war. Actual tariff rates have significantly exceeded the baseline 10% for several major U.S. trading partners, prompting retaliatory measures. Despite some ongoing trade negotiations, market uncertainty persists. In this environment, the article highlights three low-beta stocks, all sporting a Zacks Rank #1 (Strong Buy), which have demonstrated significant year-to-date appreciation and are projected for further upside. Philip Morris International (PM), with a beta of 0.50, has seen its stock jump 44.7% YTD, benefiting from strong pricing and its expanding smoke-free product portfolio, with current year revenue and earnings growth expected at 8.1% and 13.7% respectively, and its consensus earnings estimate up 3.3% in the last 30 days. Sprouts Farmers Market (SFM), beta 0.87, has surged 32.2% YTD, driven by product innovation, e-commerce growth, and operational efficiencies, with expected current year revenue and earnings growth of 13.7% and 35.5%, and its earnings estimate improving 1.4% in the last seven days; SFM projects 2025 net sales growth of 10.5%-12.5%. Newmont Corp. (NEM), beta 0.31, has climbed 40.5% YTD, supported by progress in growth projects like the Tanami expansion and synergies from the Newcrest acquisition, with current year revenue and earnings growth anticipated at 2% and 12.6%, and its consensus earnings estimate up 5.4% over the last 30 days; commercial production for its Ahafo North project is expected in H2 2025.

Key Decisions for Investors

• Investors seeking to navigate current market volatility might consider these identified low-beta stocks—Philip Morris, Sprouts Farmers Market, and Newmont Corp.—given their strong year-to-date performance, positive earnings revisions, and favorable Zacks Rank #1 (Strong Buy) ratings.
• Monitor ongoing trade negotiations and their potential impact on broader market sentiment, as this remains a key source of uncertainty despite the individual strength of these selected companies.
• Evaluate the specific growth drivers for each company, such as Philip Morris's smoke-free transition, Sprouts Farmers Market's sales and margin expansion strategies, and Newmont's project pipeline and operational efficiencies, as these underpin their respective outlooks.