In this article, we will look at the 10 Best Cheap Stocks for Beginners to Invest In.
On April 13, Jeremy Siegel, professor of finance at the Wharton School and chief economist at WisdomTree, appeared on CNBC’s ‘Closing Bell’ to discuss market resilience amid geopolitical tensions.
He said that this is an incredibly resilient market that wants to go up, as we are less than 2% away from all-time highs in the S&P 500 in the middle of the war. He likes the blockade, adding that there are some military experts who said that we should have started with the blockade and kept the air strikes in our pockets if they acted against us. Notwithstanding the blockade, Siegel thinks this is a positive development, with reports from Axios and other sources indicating that there were several points of agreement between Iran and the United States, which is closer than he had thought they might come.
READ ALSO: 7 Most Undervalued Small Cap Stocks to Buy Right Now AND 7 Most Undervalued Retail Stocks to Invest In Now.
The question will be if ships go through and Iran fires missiles, as then the United States can go back to bombing them because they broke the ceasefire. If Iran goes the extra mile and makes a deal, there will be all-time highs, but if there isn’t one, we will have some sinking back, according to him.
With these trends in view, let’s look at the best cheap stocks for beginners to invest in.
Our Methodology
We used the Finviz stock screener to make a list of the best stocks for beginners with a forward P/E under 15 and picked the top 10 with the highest number of hedge fund holders, as of Q4 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was recorded on April 17.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Cheap Stocks for Beginners to Invest In
10. HSBC Holdings (NYSE:HSBC)
HSBC Holdings (NYSE:HSBC) is one of the best cheap stocks for beginners to invest in. HSBC Holdings (NYSE:HSBC) was downgraded to Neutral from Outperform by BNP Paribas on April 14, with the firm setting a price target of 1,450 GBp. It stated that it sees uncertainty in the European bank group primarily because of higher energy costs and geopolitical risk. The firm also added that it sees a risk of lower growth and higher impairments.
In its financial performance for fiscal 2025 compared to the prior year period, HSBC Holdings (NYSE:HSBC) reported that profit before tax decreased by $2.4 billion to $29.9 billion, primarily because of a $4.9 billion year-on-year net adverse impact from notable items. It further stated that profit after tax decreased by $1.9 billion to $23.1 billion.
HSBC Holdings (NYSE:HSBC) also reported that constant currency profit before tax excluding notable items rose by $2.4 billion to $36.6 billion, benefiting from a strong performance in Wealth in its International Wealth and Premier Banking and Hong Kong businesses. In addition, the company’s Wholesale Transaction Banking in its Corporate and Institutional Banking business also supported the growth.
HSBC Holdings (NYSE:HSBC) provides banking and financial services. The company’s operations are divided into the following business segments: Hong Kong, the United Kingdom (UK), Corporate and Institutional Banking (CIB), International Wealth and Premier Banking (IWPB), and Corporate Centre.
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