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.
9. TotalEnergies SE (NYSE:TTE)
TotalEnergies SE (NYSE:TTE) is one of the best cheap stocks for beginners to invest in. On April 13, TotalEnergies SE (NYSE:TTE) announced the signing of a Memorandum of Understanding (MoU) with Türkiye Petrolleri Anonim Ortaklığı (TPAO) on exploration opportunities. It reported that the MoU offers a framework for technical collaboration, which includes a joint assessment of exploration opportunities in the Black Sea region of Türkiye as well as internationally. The company’s cooperation with TPAO would leverage the technical expertise of both companies for the evaluation of exploration opportunities in the Black Sea region, as well as internationally, on a mutually beneficial basis.
In another development, TotalEnergies SE (NYSE:TTE) reported the same day that TotalEnergies EP Congo announced a hydrocarbon discovery on the Moho license, offshore the Republic of Congo, after the drilling of the MHNM-6 NFW exploration well targeting the Moho G structure. It reported that the well encountered a hydrocarbon column of approximately 160 meters in good-quality Albian reservoirs, with an extensive data acquisition and sampling campaign carried out to support the subsurface interpretation and future development.
TotalEnergies SE (NYSE:TTE) operates as a global integrated energy company that produces natural gas and green gases, oil and biofuels, as well as renewables and electricity. It is headquartered in Courbevoie, France, and operates through the following business segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services.
8. Wells Fargo & Company (NYSE:WFC)
Wells Fargo & Company (NYSE:WFC) is one of the best cheap stocks for beginners to invest in. Wells Fargo & Company (NYSE:WFC) was downgraded to Hold from Outperform by KGI Securities on April 16, with the firm setting an $88 price target. The rating update came after Wells Fargo & Company (NYSE:WFC) announced financial results for fiscal Q1 2026 on April 14, reporting net income of $5.3 billion, or $1.60 per Diluted Share. Management stated that it saw continued positive impacts from its investments, with diluted earnings per share increasing 15%, revenue increasing 6%, loans increasing 11%, and deposits increasing 7% compared to a year ago. The revenue growth was largely attributed to both a 5% increase in net interest income and an 8% increase in noninterest income.
Wells Fargo & Company (NYSE:WFC) also reported that credit performance remained strong, with net loan charge-offs stable at 45 basis points. The company returned $4 billion to shareholders through common stock repurchases and is continuing to operate with considerable excess capital.
Wells Fargo & Company (NYSE:WFC) is a diversified and community-based financial services company that provides banking, investments, insurance, mortgage, and consumer and commercial financial products and services. The company’s operations are divided into the following segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management.
7. T-Mobile US, Inc. (NASDAQ:TMUS)
T-Mobile US, Inc. (NASDAQ:TMUS) is one of the best cheap stocks for beginners to invest in. On April 16, Morgan Stanley assumed coverage of T-Mobile US, Inc. (NASDAQ:TMUS) with an Overweight rating, setting a price target of $260. The firm identified the stock as a Top Pick, stating that wireless service revenue growth is “the lifeblood of the industry”. It believes that T-Mobile US, Inc. (NASDAQ:TMUS) remains “best positioned on both the price and volume sides of the equation”, adding that the company benefits from the most favorable pricing dynamics in the industry.
T-Mobile US, Inc. (NASDAQ:TMUS) also received a rating update from MoffettNathanson on April 8. The firm upgraded the stock to Buy from Neutral, setting a $254 price target and telling investors that while there is “a lot to like about T-Mobile”, the “best part of the story” is that the company has a reliable growth story in rural America. It added that T-Mobile US, Inc.’s (NASDAQ:TMUS) share in non-urban America has been rising steadily since 2016.
T-Mobile US, Inc. (NASDAQ:TMUS) provides wireless communications services under the T-Mobile and MetroPCS brands. The company offers prepaid and postpaid wireless messaging, voice, and data services, along with wholesale wireless services.
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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