From all the stocks above shortlist me the top 5 minimum risk stocks
7/28/2025 02:26am
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The deep research logic is organized as follows:
Okay, let's tackle this question. The user wants the top 5 minimum risk stocks from the list provided. First, I need to understand what "minimum risk" means here. Typically, lower risk stocks have stable fundamentals, lower volatility, strong financial health, and possibly higher institutional ownership, which can indicate confidence from professional investors.
Looking at the data from Reference 1, there are 10 stocks listed with their quantitative recommendation scores, closing prices, resistance levels, and other metrics. The user's previous question was about stocks breaking out of resistance levels, and now they want the least risky ones from that list.
I should start by identifying which factors contribute to lower risk. Key factors might include:
1. **Debt-to-Equity Ratio**: Lower ratios mean less leverage and potentially lower financial risk.
2. **Institutional Ownership**: Higher ownership can indicate stability as institutions often have long-term perspectives.
3. **Market Cap**: Larger market caps are generally considered less risky than smaller ones.
4. **Volatility**: Lower weekly volatility suggests more stable price movements.
5. **Quantitative Recommendation Score**: Higher scores might indicate better risk-adjusted returns.
Let me check each stock against these factors.
Starting with GIBO.O (GIBO Holdings):
- Market Cap: $50.63M (very small)
- Debt-to-Equity: 0.05% (very low)
- Institutional Ownership: 1.79% (very low)
- Weekly Volatility: 20.68% (high)
- Quantitative Score: 1.11 (highest in the list)
Risks here are high due to small market cap and high volatility. Probably not the best for minimum risk.
Next, RMD.N (ResMed):
- Market Cap: $40.35B (large)
- Debt-to-Equity: 0.12% (very low)
- Institutional Ownership: 47.17% (high)
- Weekly Volatility: 0.95% (very low)
- Quantitative Score: 0.93
This looks promising. Large cap, low debt, high institutional ownership, low volatility. Seems like a low-risk option.
SEZL.O (Sezzle):
- Market Cap: $4.96B (mid-sized)
- Debt-to-Equity: 0.56% (low)
- Institutional Ownership: 262.49% (wait, that can't be right. Maybe a typo? It's 262.49% which is over 100%, which isn't possible. Maybe it's a percentage of float? Need to check the data. Assuming it's 26.249% as per the table, which is high.
- Weekly Volatility: 3.21% (moderate)
- Quantitative Score: 0.93
Market cap is mid-sized, but institutional ownership is high. However, the stock has a 620% YTD surge, which might indicate high volatility despite the moderate weekly number. Still, the debt is low, which is good.
RACE.N (Ferrari):
- Market Cap: $92.25B (very large)
- Debt-to-Equity: 0.93% (low)
- Institutional Ownership: 80.62% (very high)
- Weekly Volatility: 1.55% (low)
- Quantitative Score: 0.91
This is a large-cap stock with high institutional ownership and low debt. However, the price is high, and it's in the luxury sector, which might be more volatile during economic downturns. But the numbers here are strong for low risk.
PH.N (Parker-Hannifin):
- Market Cap: $94.4B (very large)
- Debt-to-Equity: 0.7% (low)
- Institutional Ownership: 57.87% (high)
- Weekly Volatility: 1.12% (low)
- Quantitative Score: 0.90
Another large-cap with low debt and high institutional ownership. The volatility is low, making it a solid candidate for low risk.
GTES.N (Gates Industrial):
- Market Cap: $6.52B (mid-sized)
- Debt-to-Equity: 0.68% (low)
- Institutional Ownership: 76.66% (high)
- Weekly Volatility: 1.37% (low)
- Quantitative Score: 0.88
Mid-sized with high institutional ownership and low debt. Volatility is low, so this could be a good option.
INFA.N (Informatica):
- Market Cap: $7.5B (mid-sized)
- Debt-to-Equity: 0.79% (low)
- Institutional Ownership: 123.6% (again, seems high, possibly a typo. Assuming it's 12.36%)
- Weekly Volatility: 0.13% (very low)
- Quantitative Score: 0.87
Very low volatility and low debt. However, the market cap is mid-sized, and institutional ownership might be lower than others. Still, the volatility is a big plus.
RPM.N (RPM International):
- Market Cap: $15.76B (mid-sized)
- Debt-to-Equity: 0.78% (low)
- Institutional Ownership: 61.07% (high)
- Weekly Volatility: 3.3% (moderate)
- Quantitative Score: 0.87
Moderate volatility, but high institutional ownership and low debt. Could be a contender.
GRC.N (The Gorman-Rupp):
- Market Cap: $1.08B (small)
- Debt-to-Equity: 0.92% (low)
- Institutional Ownership: 63.51% (high)
- Weekly Volatility: 3.27% (moderate)
- Quantitative Score: 0.87
Small market cap, but high institutional ownership and low debt. However, the market cap is smaller, which might introduce more risk.
APG.N (APi Group):
- Market Cap: $14.59B (large)
- Debt-to-Equity: 0.92% (low)
- Institutional Ownership: 56.15% (high)
- Weekly Volatility: 0.75% (low)
- Quantitative Score: 0.84
Large cap, low debt, high institutional ownership, and low volatility. This seems like a strong candidate.
Now, compiling the top 5 based on the above:
1. **RMD.N (ResMed)**: Large cap, low debt, high institutional ownership, very low volatility.
2. **PH.N (Parker-Hannifin)**: Very large cap, low debt, high institutional ownership, low volatility.
3. **APG.N (APi Group)**: Large cap, low debt, high institutional ownership, low volatility.
4. **RACE.N (Ferrari)**: Very large cap, low debt, high institutional ownership, low volatility.
5. **GTES.N (Gates Industrial)**: Mid-sized, high institutional ownership, low debt, low volatility.
Wait, but RACE has a higher market cap and institutional ownership, but it's in the luxury sector which might be more sensitive to economic changes. However, the financial metrics are strong. Similarly, APG is in construction, which can be cyclical, but the metrics are solid.
Alternatively, considering the quantitative scores, RMD and PH have higher scores, so they might be better. Also, checking the user's profile, they are interested in sectors with strong market momentum. RMD is in healthcare, which is generally stable. PH is industrials, which can be cyclical but has strong fundamentals.
So, the top 5 would likely be RMD, PH, APG, RACE, and GTES. But let me double-check the quantitative scores and other factors.
RMD has the highest quantitative score (0.93), followed by SEZL and PH. However, SEZL has higher volatility despite the score. So, focusing on the lowest risk, RMD, PH, APG, RACE, and GTES are the top candidates.
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### π **Top 5 Minimum Risk Stocks**
Based on **low debt**, **high institutional ownership**, **stable volatility**, and **strong fundamentals**, here are the **top 5 minimum risk stocks** from the list:
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### π **Top 5 Stocks with Minimum Risk**
| Rank | Stock Code | Stock Name | Market Cap | Debt-to-Equity Ratio | Institutional Ownership | Weekly Volatility | Quantitative Score |
|------|------------|----------------------|------------|-------------------|--------------------------|-------------------|--------------------|
| 1 | **RMD** | ResMed | $40.35B | 0.12% | 47.17% | 0.95% | 0.93 |
| 2 | **PH** | Parker-Hannifin | $94.4B | 0.7% | 57.87% | 1.12% | 0.90 |
| 3 | **APG** | APi Group | $14.59B | 0.92% | 56.15% | 0.75% | 0.84 |
| 4 | **RACE** | Ferrari | $92.25B | 0.93% | 80.62% | 1.55% | 0.91 |
| 5 | **GTES** | Gates Industrial | $6.52B | 0.68% | 76.66% | 1.37% | 0.88 |
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### π **Why These Stocks?**
1. **ResMed (RMD)**
- **Low Risk Factors**: Minimal debt (0.12%), high institutional ownership (47.17%), and ultra-low volatility (0.95%).
- **Stability**: Healthcare sector dominance with a 5.16% EPS upside and consistent earnings beats.
2. **Parker-Hannifin (PH)**
- **Low Risk Factors**: Large market cap ($94.4B), low debt (0.7%), and stable volatility (1.12%).
- **Strength**: Industrial sector leader with a 13.6% revenue growth outlook and strong institutional backing.
3. **APi Group (APG)**
- **Low Risk Factors**: Moderate debt (0.92%), high institutional ownership (56.15%), and low volatility (0.75%).
- **Growth**: Construction sector exposure with a 40.38% EPS growth forecast and recent stock split liquidity.
4. **Ferrari (RACE)**
- **Low Risk Factors**: Minimal debt (0.93%), high institutional ownership (80.62%), and low volatility (1.55%).
- **Resilience**: Luxury sector leader with a cup-with-handle breakout and 13.56% revenue growth.
5. **Gates Industrial (GTES)**
- **Low Risk Factors**: Low debt (0.68%), high institutional ownership (76.66%), and stable volatility (1.37%).
- **Catalyst**: Cyclical recovery in industrials with a 9.09% earnings surprise.
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### π **Final Takeaway**
If youβre prioritizing **minimum risk**, **ResMed (RMD)** and **Parker-Hannifin (PH)** stand out as the safest bets due to their **ultra-low debt**, **high institutional confidence**, and **exceptional stability**. For slightly higher risk tolerance with still strong fundamentals, consider **APi Group (APG)** and **Ferrari (RACE)**.