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

Amidst a volatile market in 2025 due to renewed trade war fears, Zacks Investment Research highlights three low-beta, Zacks Rank #1 (Strong Buy) stocks that have performed well year-to-date: Philip Morris International Inc. (PM), benefiting from smoke-free product growth and pricing power; Sprouts Farmers Market Inc. (SFM), driven by product innovation and e-commerce focus; and Newmont Corp. (NEM), supported by growth projects and operational efficiencies. Each company has positive revenue and earnings growth projections for the year, with analysts revising estimates upward.

Analysis

The U.S. stock market in 2025 has exhibited mixed performance and heightened volatility, a notable shift from the sustained bull runs of 2023 and 2024. Initial market hesitancy was attributed to persistent inflation concerns and ambiguity surrounding the Federal Reserve's interest rate trajectory, following a 1% cut in the benchmark lending rate the previous year. This environment was significantly destabilized from April onwards due to the implementation of the Trump administration’s reciprocal tariff policies, where baseline tariffs of 10% reportedly escalated to over 70% for several major trading partners, prompting retaliatory tariffs and elevating fears of a global trade war. While some trade negotiations have concluded and others are ongoing, substantial market uncertainty persists. Against this backdrop, the article highlights three low-beta stocks—Philip Morris International Inc. (PM), Sprouts Farmers Market Inc. (SFM), and Newmont Corp. (NEM)—all holding a Zacks Rank #1 (Strong Buy) and demonstrating considerable year-to-date appreciation. Philip Morris (beta 0.50, +44.7% YTD) is benefiting from robust pricing power and the expansion of its smoke-free product portfolio, with projected 2025 revenue and earnings growth of 8.1% and 13.7%, respectively; its current-year earnings consensus estimate has improved by 3.3% over the last 30 days. Sprouts Farmers Market (beta 0.87, +32.2% YTD) derives strength from product innovation, e-commerce emphasis, and operational efficiencies, forecasting net sales growth between 10.5% and 12.5% for 2025, and expected current-year revenue and earnings growth of 13.7% and 35.5%, with its earnings consensus recently improving by 1.4%. Newmont Corp. (beta 0.31, +40.5% YTD) is advancing due to progress in growth projects such as Tanami and the Ahafo North project (slated for commercial production in H2 2025), alongside synergies from the Newcrest acquisition, projecting 2% revenue and 12.6% earnings growth for the current year, reinforced by a 5.4% increase in its earnings estimate in the past 30 days. These selections underscore a strategic preference for fundamentally sound companies with reduced market sensitivity in the prevailing turbulent economic landscape.

Key Decisions for Investors

• Investors should consider incorporating low-beta stocks with strong fundamentals, such as Philip Morris International, Sprouts Farmers Market, and Newmont Corp., to potentially enhance portfolio resilience amidst ongoing trade uncertainties and market volatility.
• It is crucial to closely monitor developments in international trade negotiations and tariff policies, as these are primary drivers of current market sentiment and represent significant systemic risk factors.
• Emphasis should be placed on companies demonstrating robust earnings growth, positive analyst estimate revisions, and clear strategic initiatives, as these characteristics, evident in the highlighted stocks, may offer defensive qualities in a challenging macroeconomic environment.