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.
8. Abbott Laboratories (NYSE:ABT)
10-Year Revenue CAGR: 7.58%
Number of Hedge Fund Holders: 70
Abbott Laboratories (NYSE:ABT) is one of the best stocks to buy for beginners now. On June 10, Tandem Diabetes Care Inc. (NASDAQ:TNDM) announced a new agreement with Abbott to develop and commercialize integrated diabetes solutions. The collaboration will combine Abbott’s future dual glucose-ketone sensor with Tandem’s innovative insulin delivery systems, with the aim of providing more comprehensive management options for individuals with diabetes.
The Abbott sensor, which is currently under development, will feature combined glucose and ketone sensing technology. The primary goal of the integrated sensor is to help people living with diabetes detect early rises in ketone levels, and thereby enable them to take prompt action and potentially avoid life-threatening diabetic ketoacidosis/DKA.
The President and CEO of Tandem Diabetes Care, John Sheridan, stated that integrating Tandem’s advanced insulin delivery systems with Abbott’s future dual glucose-ketone sensor has the potential to empower patients with diabetes to make faster, more informed decisions about their health, which would ultimately lead to improved outcomes.
Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells health care products worldwide. Tandem Diabetes Care Inc. (NASDAQ:TNDM) designs, develops, and commercializes technology solutions for people living with diabetes.
7. AbbVie Inc. (NYSE:ABBV)
10-Year Revenue CAGR: 10.87%
Number of Hedge Fund Holders: 86
AbbVie Inc. (NYSE:ABBV) is one of the best stocks to buy for beginners now. In mid-May, AbbVie and ADARx Pharmaceuticals announced a collaboration and license option agreement. The partnership aims to develop small interfering RNA (siRNA) therapeutics across multiple disease areas, such as neuroscience, immunology, and oncology.
siRNA molecules are a class of genetic medicines capable of regulating gene expression and protein production by targeting messenger RNA (mRNA) to prevent the synthesis of disease-causing proteins. This differs from traditional approaches like antibodies and small molecules, which target existing proteins. The collaboration will combine ADARx’s RNA discovery expertise and proprietary siRNA technology, which has the potential for sustained and precise mRNA silencing, with AbbVie’s extensive experience in antibody engineering, antibody drug conjugates/ADCs, and tissue delivery approaches.
Under the terms of the agreement, ADARx will receive an upfront payment of $335 million. Additionally, ADARx is eligible to receive several billion dollars in further contingent payments, which include option-related fees and milestone payments, as well as tiered royalties on any successfully commercialized products.
AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical company that researches & develops, manufactures, commercializes, and sells medicines and therapies worldwide. ADARx Pharmaceuticals is a late clinical-stage biotech company that specializes in next-gen RNA therapeutics.
6. Thermo Fisher Scientific Inc. (NYSE:TMO)
10-Year Revenue CAGR: 9.76%
Number of Hedge Fund Holders: 101
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the best stocks to buy for beginners now. On June 2, Thermo Fisher Scientific announced the launch of 2 new mass spectrometers: the Thermo Scientific Orbitrap Astral Zoom mass spectrometer/MS and the Thermo Scientific Orbitrap Excedion Pro mass spectrometer/MS. These instruments were unveiled at the American Society for Mass Spectrometry/ASMS annual conference, which was held from June 1 to 5 in Baltimore, Maryland.
The new Orbitrap innovations aim to push the boundaries of scientific discovery by enhancing analytical performance and speed, and enabling researchers to uncover complex biological processes. This is expected to advance precision medicine and provide insights into complex diseases like Alzheimer’s and cancer.
The Orbitrap Astral Zoom MS is an enhancement of the previously award-winning Orbitrap Astral mass spectrometer that offers performance improvements. It boasts 35% faster scan speeds, 40% higher throughput, and 50% expanded multiplexing capabilities, which leads to increased sensitivity and experimental flexibility.
Thermo Fisher Scientific Inc. (NYSE:TMO) provides life sciences solutions, analytical instruments, specialty diagnostics, & laboratory products, and biopharma services internationally.
5. Eli Lilly and Company (NYSE:LLY)
10-Year Revenue CAGR: 9.61%
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the best stocks to buy for beginners now. On June 11, Eli Lilly announced a partnership with Juvena Therapeutics to develop new muscle-boosting drugs. The collaboration is valued at over $650 million, with the majority of this sum tied to the achievement of specific development and commercialization milestones.
The core of the partnership involves Eli Lilly using Juvena’s A)-enabled screening platform, which is known as JuvNET. This platform specializes in mapping the therapeutic potential of proteins secreted by stem cells. By combining a vast database of secreted proteins with disease phenotypes, in silico and in vitro human cell screening, and other advanced capabilities, JuvNET is designed to identify promising drug candidates that can improve muscle health and body composition.
Eli Lilly’s interest in muscle-boosting drugs has surged in parallel with the popularity of GLP-1 weight-loss medication. These medications are effective for weight loss but can also lead to a reduction in lean muscle mass, which can impair physical function and increase the risk of falls and fractures, especially in older individuals and senior citizens. Eli Lilly aims to address this concern.
Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals internationally. Juvena Therapeutics is a clinical-stage biotechnology company on a mission to research, develop, and commercialize tissue restorative biologics.
4. UnitedHealth Group Incorporated (NYSE:UNH)
10-Year Revenue CAGR: 11.79%
Number of Hedge Fund Holders: 139
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best stocks to buy for beginners now. On June 10, Reuters reported that UnitedHealth Group is actively considering multiple bids to divest its Latin American operations, a process it has been pursuing since 2022 following losses that exceeded $8 billion in the region. The urgency to sell its subsidiary, Banmedica, which operates in Colombia and Chile, has intensified recently due to various financial pressures the company faces.
UnitedHealth acquired Banmedica in 2018 for $2.8 billion. However, 3 years later, the insurer decided to withdraw from the region due to substantial losses, particularly from its Brazilian operation, Amil, which was acquired a decade prior. Despite Banmedica itself being profitable, it is deemed too small for UnitedHealth’s overall strategic interests. Banmedica’s operations now include 1.7 million health insurance plan members, 7 hospitals, and 47 medical centers, which are down from 2.1 million plan members, 13 hospitals, and 143 medical centers previously.
UnitedHealth Group Incorporated (NYSE:UNH) is a health care company in the US and internationally. It operates through 4 segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.
3. Mastercard Incorporated (NYSE:MA)
10-Year Revenue CAGR: 11.83%
Number of Hedge Fund Holders: 155
Mastercard Incorporated (NYSE:MA) is one of the best stocks to buy for beginners now. On June 16, Mastercard announced the launch of Mastercard Cloud Edge, which is a new cloud-based connectivity solution designed to accelerate customer onboarding and streamline the launch of payment tools. The solution is developed in collaboration with leading cloud providers, such as AWS, and will enable Asia Pacific banks and fintechs to onboard to Mastercard’s network up to four times faster.
Mastercard Cloud Edge addresses the rapid growth of fintechs globally, which are projected to expand ~three times faster than the overall banking industry through 2028, largely driven by emerging markets in Asia Pacific. Cloud computing is a key accelerator of this growth and is expected to account for over $1 trillion in value across the world’s top 500 companies. Specifically in Asia Pacific, cloud computing is poised to drive the fintech market to a projected value of ~$311 billion by 2029.
Cloud Edge provides seamless, private connectivity to Mastercard’s network across Asia Pacific and frees customers from reliance on a single IT infrastructure or on-premises solutions. It accelerates time to market for fintech solutions and ensures regulatory compliance with local data storage and processing requirements. Furthermore, it offers direct access to modern payment technology, including Transaction APIs built on ISO 20022-standardized payloads.
Mastercard Incorporated (NYSE:MA) is a technology company that provides transaction processing and other payment-related products and services in the US and internationally.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
10-Year Revenue CAGR: 14.14%
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best stocks to buy for beginners now. On June 12, the University of Tokyo (UTokyo) and Taiwan Semiconductor Manufacturing/TSMC officially launched the ‘TSMC-UTokyo Lab,’ which is a joint research laboratory dedicated to advancing semiconductor research, education, and talent incubation.
The new facility is located on UTokyo’s Asano campus in the Hongo district and marks TSMC’s first laboratory collaboration with a university outside of Taiwan. The partnership between UTokyo and TSMC has been ongoing since 2019 and initially focused on advanced semiconductor research, which has led to 21 successful research projects. The collaboration has now expanded to include semiconductor education and the incubation of next-gen talent.
A major step in this expansion occurred in 2023 when UTokyo became the first Japanese university to adopt TSMC’s 16nm FinFET process technology for chip design training through the ‘TSMC N16 (FinFET) ADFP’ (Academic Design Foster Package), which is the most comprehensive educational package TSMC offers globally. A Strategic Industrial/Academic Collaboration Agreement was signed in April 2025 to systematize and promote this partnership further, concurrently launching a Social Cooperation Program at UTokyo.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, packages, tests, and sells integrated circuits and other semiconductor devices internationally.
1. Microsoft Corporation (NASDAQ:MSFT)
10-Year Revenue CAGR: 11.04%
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the best stocks to buy for beginners now. On June 12, Business Insider reported that Microsoft is developing a specialized version of its 365 Copilot AI tool for the Pentagon to enhance US defense operations through advanced automation and data analysis. The adaptation of Microsoft’s flagship GenAI solution is expected to become available for Department of Defense/DoD environments no earlier than summer 2025.
The flagship GenAI solution automates tasks, generates reports, analyzes data, and improves collaboration across Microsoft 365 applications. The successful deployment at the Pentagon could lead to over 1 million new users and generate hundreds of millions in annual revenue. The Pentagon is one of the world’s largest employers and has a workforce of ~2.1 million service members and ~770,000 civilian staff, according to a 2023 Government Accountability Office report.
Deploying AI in the defense sector requires stringent security measures. Microsoft has stated that Copilot for the DoD will only launch after meeting rigorous security and compliance standards, which include DoD IL5, FedRAMP High, and CMMC certifications. The company is collaborating closely with government stakeholders to ensure robust data compartmentalization, audit logging, and safeguards against AI hallucinations or data leaks. Microsoft has publicly announced its plans to extend Copilot to its Microsoft 365 suite for high-security government customers this year.
Microsoft Corporation (NASDAQ:MSFT) develops and supports software, services, devices, and solutions worldwide.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None.
