On June 12, Dan Niles, Niles Investment Management founder and portfolio manager, joined CNBC’s ‘Squawk Box’ to discuss the state of the economy and how he expects the market to catch up to reality later this year. Niles highlighted that the US GDP in Q1 2025, which was 25% of the global GDP, saw imports up by 41% in the first quarter. He interprets this as a substantial pull-forward in demand, explaining why many companies, particularly 6 of the 7 MAG7 that had revenue estimates cut for the December quarter, reported strong results for the March quarter. Niles also predicted a big disappointment for consumer electronics, PCs, and car sales during the Thanksgiving through Christmas period, as consumers also anticipate tariffs and have therefore likely made advance purchases of high-priced goods.
Niles indicated a short-term bullish view but a longer-term bearish outlook for November and December, when he expects the market to align with the reality of pulled-forward demand. He notes that human beings tend to be optimistic and want to believe in positive outcomes, such as low CPI/PPI or large investment announcements, even if no timeframe is given for these announcements. However, this optimism overlooks the potential negative impact of the significant import surge on future demand.
That being said, we’re here with a list of the 10 best stocks to buy for beginners now.
A portfolio manager studying various stocks and other securities on a tablet.
Our Methodology
We sifted through ETFs and financial media reports to compile a list of the top blue-chip stocks. We then selected mature companies with a 10-year revenue CAGR of 7% to 15% (high single digits to mid-teens is our definition of a mature and reliable grower), which were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Stocks to Buy For Beginners Now
10. Bristol-Myers Squibb Company (NYSE:BMY)
10-Year Revenue CAGR: 11.45%
Number of Hedge Fund Holders: 69
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best stocks to buy for beginners now. On June 12, Bristol Myers Squibb shared new data from its targeted protein degradation platform at the 2025 European Hematology Association/EHA Annual Congress, held in Milan from June 1 to 15.
These presentations featured updated clinical findings for investigational oral CELMoD agents (mezigdomide, iberdomide, golcadomide) and a first-in-class oral BCL6 ligand-directed degrader (BMS-986458), all of which showed potential to address unmet medical needs in blood cancers. The promising early results are driving multiple Phase 3 studies for mezigdomide, iberdomide, and golcadomide, with projected data readouts spanning from 2025 to 2030.
Mezigdomide is an oral drug used for relapsed/refractory multiple myeloma (RRMM), trials for which showed significant patient responses. The most common severe side effect reported was neutropenia, a low count of a type of white blood cell. Another oral drug, iberdomide, was tested in 18 patients with newly diagnosed multiple myeloma. The results were very positive, with 88.9% of patients responding to the treatment. Golcadomide showed promising results in patients with relapsed/refractory (R/R) non-Hodgkin lymphoma. The most common severe side effects were neutropenia and anemia.
Bristol-Myers Squibb Company (NYSE:BMY) discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide.
9. Starbucks Corporation (NASDAQ:SBUX)
10-Year Revenue CAGR: 7.46%
Number of Hedge Fund Holders: 70
Starbucks Corporation (NASDAQ:SBUX) is one of the best stocks to buy for beginners now. On June 12, Goldman Sachs analysts, led by Christine Cho, adjusted the price target for Starbucks from $85 to $95, while keeping a Neutral rating on the shares. Goldman Sachs is encouraged by the increased clarity regarding Starbucks’ turnaround strategy, particularly the faster-than-expected rollout of the Green Apron service model in its US stores.
The company’s CEO, Brian Niccol, emphasized the company’s progress in its ‘Back to Starbucks’ turnaround plan and cited smoother store operations, deeper customer engagement, and a long-term setup in China, where comparable sales were flat. However, Christine Cho prefers to stay on the sidelines and believes that it will take time for these initiatives to translate into profit growth.
The adjustment followed Starbucks’ Q2 2025 comparable sales fell short of expectations. Global comparable sales dropped 1%, with North American sales down 1% and US units down 2%, partially offset by higher average tickets. Despite traffic challenges, the company added 213 stores and brought its global total to 40,789.
Starbucks Corporation (NASDAQ:SBUX) is a roaster, marketer, and retailer of coffee worldwide. The company operates through 3 segments: North America, International, and Channel Development.