Finding the Best Shares During Market Volatility: Low-Beta Defensive Stocks in 2026

Market uncertainty continues to challenge investors worldwide. With concerns over central bank leadership transitions and potential economic disruptions, conventional growth stocks often present higher volatility and risk exposure. In such turbulent environments, identifying and holding the best shares becomes crucial—particularly defensive equities with lower price fluctuations. Four standout candidates from recent screening analysis include Futu Holdings Limited (FUTU), Forum Energy Technologies Inc (FET), Dollar General Corporation (DG), and SK Telecom (SKM). These represent precisely the kind of stable, lower-volatility best shares that thoughtful investors should consider adding to their portfolios.

Understanding Defensive Share Characteristics

When evaluating defensive or low-beta best shares, it’s essential to understand what “beta” actually measures. Beta quantifies how much a stock’s price moves relative to the broader market. Taking the S&P 500 as our market benchmark, a beta of 1.0 means the stock moves in lockstep with the index. Stocks with beta values below 1.0 typically experience smaller price swings than the market—making them the best shares for risk-conscious investors during uncertain periods.

Consider practical examples: if the market surges 20% and a stock carries a beta of 0.5, that best shares candidate would typically rise just 10%. Conversely, during a 20% market decline, the same defensive stock would fall approximately 10% rather than experiencing the full market downturn. This cushioning effect makes low-beta best shares particularly valuable when recession fears or geopolitical tensions dominate headlines.

Screening Framework for the Best Shares

Identifying truly exceptional defensive stocks requires more than just checking beta values. A comprehensive screening approach incorporates multiple criteria that distinguish best shares from ordinary low-volatility plays.

Core Filtering Metrics:

We applied a beta threshold of 0 to 0.6 as the foundation—ensuring that selected best shares demonstrate notably lower volatility than the market. Beyond this baseline, we examined positive price momentum over the preceding four weeks, confirming that these best shares maintained investor interest despite market turbulence. Trading volume averaging above 50,000 shares daily ensures adequate liquidity, making these best shares easily tradable without significant market impact. All candidates were required to maintain share prices of $5 or above, filtering for established companies. Most critically, all best shares selected carried a Zacks Rank of #1 (Strong Buy), indicating that professional analysts expect these stocks to meaningfully outperform the broader market over the next twelve to thirty-six months.

Through this disciplined process, 23 stocks qualified. Here are four of the most compelling best shares recommendations:

Four Best Shares Meeting Rigorous Criteria

Futu Holdings: Digitalized Financial Services Pioneer

Futu Holdings operates in the rapidly expanding digital wealth management sector, delivering fully-automated investment platforms to clients across Asia and globally. The company’s client base has expanded significantly, reflecting growing confidence in its technology-driven approach—even attracting investors from outside its Hong Kong headquarters. This geographic diversification demonstrates Futu’s evolution from a regional player to a genuinely global financial services provider.

Forum Energy Technologies: Beneficiary of Energy Transition

As global energy demand remains robust, Forum Energy Technologies continues supplying critical equipment and engineering solutions to upstream oil and gas producers worldwide. The company prioritizes debt reduction while channeling substantial portions of operating cash flow toward strategic investments and balance sheet strengthening. This financial discipline, combined with exposure to essential commodity sectors, positions FET as among the best shares for investors seeking stable income with modest growth potential.

Dollar General: Recession-Resistant Retail

Dollar General’s defensive characteristics stem from its core business model—retailing everyday consumables and necessities at deeply discounted prices. During economic slowdowns, consumers increasingly migrate to value retailers, potentially accelerating Dollar General’s growth trajectory. The company’s disciplined expansion strategy and commitment to affordable pricing create a structural moat, making DG one of the best shares for maintaining steady wealth accumulation through various economic cycles.

SK Telecom: Telecommunications Infrastructure with AI Positioning

SK Telecom dominates South Korea’s telecommunications landscape while aggressively integrating artificial intelligence throughout its operations. From AI-powered customer service to infrastructure optimization, the company is positioning itself at the convergence of communications and emerging technology. As one of the best shares in the telecom sector, SKM offers stability through its essential services business combined with upside potential from AI-driven initiatives.

Historical Performance Evidence

The case for identifying and holding defensive best shares rests partly on empirical evidence. Since 2000, Zacks Investment Research’s proprietary stock-picking methodologies have substantially outpaced the S&P 500’s average annual return of 7.7%. Their top-tier strategies delivered average annual returns of +48.4%, +50.2%, and +56.7% respectively—demonstrating that disciplined screening frameworks, properly implemented, can identify the best shares with genuine outperformance potential.

These historical results underscore a fundamental truth: the best shares aren’t necessarily the most exciting or fastest-growing. Rather, they represent companies with sustainable competitive advantages, solid financial foundations, and valuations supported by underlying business strength—precisely the characteristics embodied by low-beta equities during periods of market uncertainty.

For investors navigating 2026’s evolving landscape, considering these best shares candidates offers a compelling pathway toward building resilient portfolios.