Yahoo Finance reported that the S&P 500 fell more than 4% on Thursday, November 5, its worst day since the April 2025 tariff crash, erasing roughly $3 trillion in market value. The Nasdaq slid into a correction, and the PHLX Semiconductor Index dropped 12%, its worst session since March 2020.
The shock rippled well beyond one session, and Friday brought only partial relief. The S&P 500 closed at 7,376.86, up 0.31%, but the index was still on pace for its worst week since June. The VIX, Wall Street's fear gauge, settled at 25.64 after jumping as much as 70% a day earlier.
When a Fear Gauge Spikes, Steadiness Gets Valuable
Yahoo Finance's Brian Sozzi noted that a one-day VIX surge of that size has happened only eight times since 1991. After those episodes, the S&P 500 averaged a gain of 3.0% one month later and 7.1% three months later. History leans against panic, yet it does little to smooth the ride for portfolios packed with fast-moving names. Those portfolios absorb the drawdowns first, and the drawdowns are what test an investor's patience.
That is why beta matters. Beta is an indicator of a stock's price volatility compared with the broader market, which carries a beta of 1.0 when measured by an index such as the S&P 500. A reading below one means the stock's price has been more stable than the market's, so a stock with a beta of 0.5 would have risen or fallen only half a percent when the index moved 1%. Investors weighing quality against momentum can find more ideas in our ranking of the best undervalued stocks to buy in October .
Cheap and Growing Is a Rarer Combination Than It Sounds
The forward price-to-earnings ratio divides a share price by the earnings per share analysts expect over roughly the next 12 months. It notes that no forward P/E is universally good because the ratio varies by industry, though a lower figure may suggest a stock is undervalued relative to its future earnings potential. Revenue growth of at least 5% adds a second test, since a low multiple on a shrinking business may simply mean it is cheap for a reason. Together, the two screens look for companies that are still growing at a modest price.
The recent selloff was concentrated in the AI and data-center trade, with chipmakers hit hardest and few places to hide for investors chasing momentum. Companies with little exposure to that spending sit in a different corner of the market, and precious metals producers are one such group. Our list of the best gold stocks according to analysts covers more of it.
We shared the expanded list of the 10 'Sleep Well at Night' Stocks to Buy Now here . You can find the top 5 stocks below.
Our Methodology
We used Finviz to screen for large-cap stocks (over $10 billion) with a beta below 1, a forward P/E under 15, and quarterly revenue growth above 5% year over year. We kept those that beat the S&P 500 over the past week, ranked them by their 5-day return, and counted the list down from there. We also list each stock's hedge fund holders as of Q2 2026.
Note: All data was sourced on November 8, 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey's quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612% since May 2014, beating its benchmark by 375 percentage points ( see more details here ).
Forget the High-Beta Hype: 5 'Sleep Well at Night' Stocks to Buy Now
5. Yum China Holdings (NYSE: YUMC )
Number of Hedge Fund Holders: 35
Market Cap: $16.83 billion
Beta: 0.03
Forward P/E: 14.81
Revenue Growth (YoY): 8.45%
5-Day Return: 9.11%
Yum China is adding restaurants at a record pace while still widening margins. In the third quarter it opened a record 692 net new stores, and management raised its full-year target to more than 2,400 openings. Operating profit grew 13% year over year, and operating margin expanded for the tenth consecutive quarter, helped by streamlined operations and lower license fees after the company acquired the Pizza Hut brand in Mainland China.
Same-store transactions grew for the fifteenth straight quarter, even as comparable sales faced pressure from tough comparisons against last year's delivery subsidies. Management says it is capturing new demand through smaller orders and solo dining, and side-by-side concepts such as KCOFFEE cafes and Pizza Hut's Burger Bar give each location another way to earn.
Shareholders are paid while the footprint grows. Yum China is on track to return $1.5 billion to shareholders this year through dividends and buybacks, which the company says is about a tenth of its market value. With a beta of zero, a forward P/E under 15 and little reliance on the AI trade, the stock offers a growth-and-income profile that does not depend on the AI trade.
4. Newmont (NYSE: NEM )
Number of Hedge Fund Holders: 75
Market Cap: $125.65 billion
Beta: 0.53
Forward P/E: 12.18
Revenue Growth (YoY): 15.2%
5-Day Return: 13.41%
Newmont, the world's largest gold producer, is converting scale into cash. In the third quarter it generated $1.9 billion of free cash flow, and adjusted earnings per share of $2.20 set a record for a third quarter. The company produced about 1.3 million attributable ounces of gold, and management says it remains on track to meet its full-year production guidance.
Its balance sheet has strengthened along the way. Newmont ended the quarter with $3.2 billion of net cash and ample total liquidity, even after funding development projects such as the second expansion at Tanami. Management expects higher-grade ore in the fourth quarter, and it has said attributable production could rise next year.
Per-share ownership keeps improving too. Since early 2024, Newmont has cut its share count by roughly 10%, which gives each remaining share a larger claim on the cash the portfolio produces. The board also declared another quarterly dividend, and the company points to a sustainable-through-the-cycle payout. Add a forward P/E in the low teens and a beta near 0.5, and the stock combines scale, cash generation and capital returns.
For more, check out our analysis on Newmont (NEM) here: Newmont (NEM) vs Barrick (B): Which is a Better Stock to Buy?
3. Corpay (NYSE: CPAY )
Number of Hedge Fund Holders: 53
Market Cap: $29.12 billion
Beta: 0.88
Forward P/E: 14.24
Revenue Growth (YoY): 17.86%
5-Day Return: 13.52%
Corpay is growing quickly in a business where payments move in the background of corporate life. Third-quarter revenue rose 18%, and organic growth of 11% extended a run of steady double-digit expansion. Adjusted earnings per share jumped to $7.54, ahead of what management had expected, and the company raised its full-year outlook to reflect the strong quarter.
The Corporate Payments segment is the engine. Its organic revenue growth accelerated, helped by strong results in spend management and cross-border payments, and the segment's EBITDA margin was remarkably high because new revenue flows through at a high rate. In the U.K., management expects its spend management operation to exit the fourth quarter with more than $1 billion in annualized volume.
Capital allocation adds a second lever. Corpay generated about half a billion dollars of free cash flow in the quarter and repurchased shares for $747 million, so every remaining share captures more of the earnings. The company also says its portfolio transformation toward fewer, bigger businesses is progressing. Together with a forward P/E under 15, those buybacks add to the case for a compounding payments platform.
Read our latest analysis on Corpay (CPAY) here: Corpay (CPAY) Simplifies Its Business As Profits Take A Hit
2. Alamos Gold (NYSE: AGI )
Number of Hedge Fund Holders: 45
Market Cap: $13.32 billion
Beta: 0.59
Forward P/E: 11.77
Revenue Growth (YoY): 10.40%
5-Day Return: 15.96%
Alamos Gold is growing production at a high-quality asset base. In the third quarter, revenue rose 10% as the company sold more than 118,000 ounces of gold at a much higher realized price. The Island Gold District produced a record 68,700 ounces, with record underground mining and milling rates, and management expects fourth-quarter output of 140,000 to 160,000 ounces.
The balance sheet keeps getting cleaner. Alamos ended the quarter with $397 million of net cash and bought back a further portion of the legacy gold hedges it inherited in an acquisition. All of its sites generated positive free cash flow, and the company returned cash through its dividend and ongoing buybacks while it funds growth.
Growth is the longer story. The Island Gold expansion is a major project, and management still plans to roughly double production by the end of the decade, with Lynn Lake ramping up as well. Costs are expected to fall in the fourth quarter as underground grades and mining rates increase. A forward P/E in the low teens and a beta of about 0.6 make that growth plan relatively inexpensive to own.
Go further with our analysis on Alamos Gold (AGI) here: Alamos Gold (AGI) Plans to Double Production. Can Gold's Windfall Become Lasting Cash Flow?
1. AngloGold Ashanti (NYSE: AU )
Number of Hedge Fund Holders: 31
Market Cap: $46.96 billion
Beta: 0.72
Forward P/E: 10.49
Revenue Growth (YoY): 8.36%
5-Day Return: 16.54%
AngloGold Ashanti is a cash-generation story with a long runway. In the third quarter, it produced $722 million of free cash flow, even as capital spending rose to fund growth and cash taxes increased with profits. EBITDA rose from a year earlier, and year-to-date free cash flow stayed strong despite those higher outlays.
Cash is flowing back to shareholders. The board declared an interim dividend of $361 million, and shareholders approved a $2 billion buyback program earlier in the year. The company ended the quarter with net cash of $1.26 billion and liquidity that provides ample headroom to fund its growth projects.
The growth plan is concrete. Management is building a large new production center in southern Nevada, with the North Bullfrog and Arthur gold projects advancing, and it is working on expansions at mines in Tanzania, Guinea, Egypt and Brazil. Full-year production and cost guidance was reaffirmed, and the company described its structure as one built for predictable operations and balance sheet resilience. With a forward P/E near the low end of this list and a beta below 0.75, the shares pair a generous payout with reinvestment in future ounces.
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Click to continue reading and see the expanded list of the 10 'Sleep Well at Night' Stocks to Buy Now .
This article is originally published at Insider Monkey .
