We recently announced a list of 10 best low volatility stock to buy now. In this article, we're going to look at where Eli Lilly and Company (NYSE: Lly) stands against other best low volatility stocks to buy now.
The US stock market experienced a troubled first quarter 2025, marked by increased interchangeability and negative gains across the major indices. Uncertainty about the performance of technology stocks, economic data and trade tensions caused market volatility.
The year began with the revelation of artificial intelligence (AI) software developed in China called Deepseek. The pioneering AI competed with its US competitors, such as Chatgpt, and was revolutily considered compared to others, sending shock waves across the world markets. Reuters reported a global investor sales across US indices, with one of the leading technology companies alone losing $ 593 million in one day. The US government was quick to implement policies aimed at promoting technology companies listed from the United States, while reducing the effect of Deepseeek at the same time, such as using tariffs against trade with Chinese companies.
In February 2025, the first round of US government tariffs was aimed directly to China in an effort to curb the Deepseek impact on the U.S. technology industry. In March, President Trump announced a 54% tariff rate on Chinese goods, while China had revenge with 34% tariffs on US goods and services. As reported by CNBC, the total amount of tariffs applied on Chinese goods by the United States is 145%, on April 11, 2025, with exceptions on specific sectors such as technology, automobiles and smartphones. China operated a 125% revengeful trade tariffs on American goods and services.
Due to this economic landscape, the uncertainty about interest rates added to market volatility. The Federal Fund announced that it would maintain interest rates between 4.25% and 4.50%. Speaking at dinner at Chicago Economic Club, Federal Fund Chairman Jerome Powell noted:
“For now, we are well placed to wait for greater clarity before considering any modifications to our policy stance.”
The US economy is considered to go into “persistent stagnation”, defined as continuous inflation with very low growth and high unemployment. The CBOE (AKA VIX) interchangeability index is one of the indicators that the Fed monitors as part of the wider tools available to assess market conditions. VIX of 20 or higher suggests a higher than usual level of expected price variations. The VIX is currently at 32.64%.
The current market suggests that investors may want to press towards low risk stocks to avoid potential financial hazards. Low volatility stocks are currently outweighing the wider market and testing their strength during uncertain times. After two flawed years, this strategy has emerged as a best-performing investment theme in 2025 among the 13 traced by Bloomberg intelligence. Joe Gilbert, Portfolio Manager in the integrity of management assets, made the following comment on the low risk stocks:
“Investors will have to live with volatility at least for the rest this year. The lowest volatility names are the place for investors to hide.”
In this article, we investigated the 20 companies with the lowest (monthly) beta between 0.2 and 0.8, using Yahoo Finance stocks screener. Next, we used the Insider Monkey's Q4 2024 Hedgehoppy Database and identified the 10 most popular hedge fund stocks. The stocks are listed in the ascending order of their hedgerow fund posts.
At Insider Monkey, we have an obsession with hedge funds. Why are we interested in the stocks to which money accumulates? The reason is simple: our research has shown that we can outperform the market by imitating the main stock options of the best hedge funds. Our quarterly newsletter strategy selects 14 small cap stocks and a large cap every quarter and has returned 373.4% since May 2014, beating its 218 percentage point benchmark (See more details here).
Is Lilly's Eli and Cwmni (Lly) the best low volatility stock to buy now?
Monthly Beta 5 years: 0.5
Number of Hedgerow Fund Holders: 115
Eli Lilly and Company (NYSE: Lly) is a world -ea -pharmaceutical company that focuses on the discovery, development and marketing of human pharmaceuticals. The company offers a wide range of treatments across several therapeutic areas, with a portfolio that includes various insulin formulations under humal and humulin brands, as well as newer medicines such as Jardiance, Mounjaro, Trulicity, and Zepbound for obesity and type 2 diabetes.
Although pharmaceuticals are often excluded from direct tariffs, the wider implications of a trade war and potential future tariffs are expected to target the sector in particular affecting LY. Eli Lilly and Company (NYSE: Lly) actively collaborates with other pharmaceutical and biotechnology companies, including Incyte, Boehringer Ingelheim, Roche, and others, to promote his research and development efforts across his various therapeutic pipeline. The company is marketing its products in the United States, Europe, China, Japan and other international markets. In order to offset the impact of new margins, the pharmaceutical giant continues to provide patients with high quality medication globally by establishing local manufacturing to compensate for the fears of supply chain restrictions.
Eli Lilly and Company (NYSE: Lly) has made eight acquisitions and signed three agreements over the past 27 months, in accordance with the company's press releases. These start from DICE therapeutics in June 2023 to the latest Scorpion therapeutics in January 2025. These strategic procurements are key to ensuring continued growth for new markets.
The price of Eli Lilly and Company (NYSE: Lly) surged recently, having successfully completed a phase 3 trial for overforglipron, its oral GLP-1 medicine once a day. The drug effectively met the primary and key secondary limit points in patients with type 2 diabetes. This positive result has significantly increased investor optimism in terms of Lilly's competitive position within the rapidly expanding obesity drug market.
Together, lly is a 4th position On our list of the best low volatility stocks to buy now. While we recognize the potential of Lly, our conviction lies in the belief that AI stocks are more promised for achieving higher earnings, and to do so within a shorter timetable. There has been AI stock that has risen since the beginning of 2025, while popular AI stocks lose about 25%. If you are looking for AI stock more promising than Lly but trading at less than 5 times its earnings, check out our report for this Cheapest AI Stock.
