Amazon (AMZN) is a top safe stock favored by hedge funds for stability and growth potential.

From Yahoo Finance: 2025-04-26 17:05:00

In a list of 11 Best Safe Stocks to Buy According to Hedge Funds, Amazon.com, Inc. (NASDAQ:AMZN) is highlighted among other reliable options. Hedge funds are shifting towards safe stocks in the face of global recession risks and political uncertainties. Companies like Amazon are favored for stability and resilience by investors.

Hedge funds are strategically divesting from consumer discretionary stocks, anticipating economic trouble. A report by Goldman Sachs shows that the top 50 stocks preferred by hedge funds have collectively outperformed the broader market. This trend reflects a move towards safer investments amidst growing global uncertainties and recession indicators.

Research comparing low-volatility and high-volatility stocks worldwide shows that low-risk stocks tend to outperform high-risk stocks. Hedge funds emphasize safe stocks for their reliability and resilience in unpredictable market conditions. These stocks are characterized by strong balance sheets, consistent performance, and solid market positioning, making them attractive investments for investors seeking stability.

Amazon.com, Inc. (NASDAQ:AMZN) is a leading online retailer with a strong presence in e-commerce, cloud computing, and digital streaming services. The company’s focus on AI and robotics investments positions it well for future growth. With a vision to generate significant savings through automation, Amazon is a frontrunner in cutting-edge technology that promises long-term efficiency gains.

Analysts are optimistic about Amazon’s future, with a one-year price target indicating a potential upside of over 40%. The company’s aggressive investments in AI capabilities and infrastructure underscore its commitment to innovation and growth. For investors seeking long-term gains, Amazon stands out as a secure and promising pick in the evolving tech landscape.

Ranked first on the list of best safe stocks to buy according to hedge funds, Amazon.com, Inc. (NASDAQ:AMZN) is a top choice for investors. While safe stocks offer stability, the potential for higher returns lies in AI stocks that show promise in delivering significant gains. Investors looking for AI stocks with growth potential may find opportunities beyond Amazon, offering a different risk-return profile for their investment portfolios.

Read more: The Best Safe Stock to Buy According to Hedge Funds