10 Best Cheap Stocks for Beginners to Invest In

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6. AT&T Inc. (NYSE:T)

AT&T Inc. (NYSE:T) is one of the best cheap stocks for beginners to invest in. Morgan Stanley assumed coverage of AT&T Inc. (NYSE:T) with an Overweight rating on April 16, setting a price target of $30. The firm told investors that the company is well into its turnaround story after refocusing on its core connectivity services and divesting non-core businesses in recent years. It added that AT&T Inc. (NYSE:T) also benefits from the convergence story as the largest fiber provider and builder in the nation, “by far”.

AT&T Inc. (NYSE:T) also received a rating update from Scotiabank on April 1, with the firm lifting the price target on the stock to $31.50 from $31 while maintaining a Sector Perform rating on the shares. The firm told investors that it believes the U.S. wireless pricing environment remains “competitive yet rational” and is also conducive to growth. It added that the firm is increasing its price target on the stock ahead of fiscal Q1 results, pointing towards higher profitability expectations.

AT&T Inc. (NYSE:T) provides telecommunications and technology services and operates through the Communications and Latin America segments. Its Communications segment offers wireline telecom, wireless, and broadband services in the US and globally, while the Latin America segment manages services in Mexico.

While we acknowledge the potential of T to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than T and that has 100x upside potential, check out our report about the cheapest AI stock.

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