In this article, we discuss 10 best stocks to invest in 2024 for beginners.

Global stocks reached their highest point in over two years, with the S&P 500 hitting a new record high on February 7, as per Reuters. This was driven by robust earnings, which helped counter concerns surrounding US regional banks and the Chinese markets. Bonds experienced slight pressure, as statements from Federal Reserve officials reinforced the expectation that the central bank might not reduce interest rates in the near future. According to Arthur Hogan, the chief market strategist at B. Riley Wealth: 

“We are at the midpoint of the 4Q earnings reporting season, and we would say that there has been more good news than bad.”

In 2023, the S&P 500 delivered a total return of 26.29%, recovering from the setback of 18.11% in 2022. In 2024, investors remain optimistic that the same macroeconomic factors driving the stock market’s 2023 rally will propel the S&P 500 to achieve new all-time highs. Investors remain hopeful that the Federal Reserve will successfully guide the US economy to a soft landing, transitioning from interest rate hikes to rate cuts. The potential combination of declining interest rates and earnings growth is seen as a positive for stocks. However, analysts express worries about overvalued technology sector stocks, and the upcoming 2024 U.S. presidential election is expected to introduce significant market volatility.

Looking at historical data from 1921 to 2023, Sam Stovall, chief investment strategist of CFRA Research, noted that the average S&P 500 bull market has yielded a return of 157% and lasted over four years. This historical pattern suggests the possibility of the stock market rally continuing in the foreseeable future. One notable success in the current bull market has been the performance of artificial intelligence technology as an investment theme. AI stocks were among the top performers in 2023, contributing to the market’s overall positive trajectory. James Demmert, chief investment officer at Main Street Research, commented: 

“The market’s recent strength is indicative of a new and very real AI-led bull market and business cycle that could last a decade thanks to the productivity growth and tailwinds from AI.” 

On the other hand, Morgan Stanley’s Global Investment Committee suggests a more cautious outlook for 2024, anticipating an average year for markets rather than double-digit gains. Concerns include the S&P 500’s elevated forward price/earnings ratio and a historically low equity risk premium. Valuations indicate potential sub-par annual stock returns, with estimates pointing to a 4% gain compared to the long-run average of 7%-8%. Analysts’ optimistic projections for 2024 U.S. corporate earnings are questioned, with expectations of a tapering in economic growth from 7% to 4%. The market’s assumption of a more aggressive Fed rate-cutting stance contrasts with public signals, potentially leading to tighter financial conditions as emergency programs wind down in 2024.

Marko Kolanovic, Chief Global Markets Strategist and Global Co-Head of Research at J.P. Morgan, remarked: 

“As we approach 2024, we expect both inflation data and economic demand to soften, as the tailwinds for growth and risk markets are fading. Overall, we are cautious on the performance of risky assets and the broader macro outlook over the next 12 months, due to building monetary headwinds, geopolitical risks and expensive asset valuations.” 

Some of the best stocks to invest in 2024 for beginners include Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Mastercard Incorporated (NYSE:MA). 

Our Methodology 

For this list, we used a stock screener and selected stable companies with high single digit or low-teens revenue growth. Then, we arranged them via market cap to get the largest companies. We selected the top stocks for beginners based on revenue growth and hedge fund sentiment as of the third quarter of 2023. The list is sorted in the ascending order of the number of hedge fund holders. 

Best Stocks To Invest In 2024 For Beginners

10. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 104

Quarterly Revenue Growth: 14.10%

UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company in the United States with four segments – UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. UnitedHealthcare offers health benefit plans for employers and individuals, Medicaid plans, and children’s health insurance.

On January 12, UnitedHealth Group Incorporated (NYSE:UNH) reported a Q4 non-GAAP EPS of $6.16 and a revenue of $94.4 billion, outperforming Wall Street estimates by $0.17 and $2.22 billion, respectively. Revenue for the period increased 14% on a year-over-year basis. 

According to Insider Monkey’s third quarter database, 104 hedge funds held stakes worth nearly $11 billion in UnitedHealth Group Incorporated (NYSE:UNH), compared to 111 funds in the prior quarter worth $10.1 billion. Rajiv Jain’s GQG Partners is the leading position holder in the company, with 3.2 million shares worth $1.6 billion. 

Like Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Mastercard Incorporated (NYSE:MA), UnitedHealth Group Incorporated (NYSE:UNH) is one of the best cheap stocks for beginners. 

Wedgewood Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its fourth quarter 2023 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH) contributed less to portfolio performance than the majority of our holdings during the quarter. The Company reported double-digit revenue, operating earnings and earnings per share growth during their third quarter. The Company has been able to adjust pricing in its health care segment to keep up with medical cost inflation while working with its Optum units to deliver more value-based care that replaces the traditional fee for service health care model. Value-based care is a sensible, long-term growth opportunity for the Company to pursue and also differentiates it from the vast majority of healthcare providers, particularly as it relates to Medicare patients. For example, the Company’s value-based care programs provide more preventative care opportunities and home-based care visits for patients which helps save the U.S. healthcare system billions in unnecessary spending while also providing patients with better outcomes, as diseases and behaviors are caught or corrected at earlier stages. The Company has invested in several core assets over many years to execute this value-based strategy and it will become the standard of care as the proportion of people in the U.S. with healthcare insurance coverage continues to reach new highs.”

9. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 109

Quarterly Revenue Growth: 11.00%

JPMorgan Chase & Co. (NYSE:JPM) is a global financial services company operating in four segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. It is one of the top cheap beginner stocks to watch. 

On February 6, JPMorgan Chase & Co. (NYSE:JPM) announced that it intends to initiate a substantial expansion over the next three years, involving the commencement of 500 new branches, renovation of 1,700 locations, and the hiring of 3,500 staff members. The expansion will focus on reaching low-income and rural communities in new markets. Upon completion, this initiative will result in over 1,100 added branches and more than 10,500 new hires in its Consumer Bank team since 2018. 

According to Insider Monkey’s third quarter database, 109 hedge funds were long JPMorgan Chase & Co. (NYSE:JPM), compared to 106 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder of the company, with 11.3 million shares worth $1.65 billion. 

Madison Sustainable Equity Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its fourth quarter 2023 investor letter:

“We updated the sustainable scorecard for JPMorgan Chase & Co. (NYSE:JPM). JP Morgan continues to have an Average rating across Governance, Social and Environmental factors. JP Morgan is using its business to improve climate change. JP Morgan has targeted $2.5 trillion in financing between 2021 and 2030 to advance long-term solutions to address climate change and sustainable development. The Board has oversight of corporate responsibility and ESG matters, but ESG and Sustainability are addressed across the firm. JPM does listen to shareholders. After a 31% For Vote on executive compensation in 2022, the Board will not be granting any special awards to Jamie Dimon or Daniel Pinto and if awarded to other Named Executive Officers, there will be a direct performance condition associated with the award. The Compensation Committee limited the cash percentage of Dimon and Pinto’s compensation.”

8. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 110

Quarterly Revenue Growth: 10.20%

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company operating in Data Center, Client, Gaming, and Embedded segments. The company provides x86 microprocessors, graphics processing units (GPUs), chipsets, and other products for data centers, gaming, and embedded applications. It is one of the best cheap beginner stocks to invest in. 

On February 1, Citi analyst Christopher Danely observed that Advanced Micro Devices, Inc. (NASDAQ:AMD) has increased its guidance for artificial intelligence-related revenue, anticipating $3.5 billion in sales for the current year, up from the previous estimate of $2 billion. Citi suggested that Advanced Micro Devices, Inc. (NASDAQ:AMD) may intentionally be underestimating, and the company’s CEO expressed confidence in surpassing the $3.5 billion figure for this year. The analyst estimated that AMD could generate $5 billion this year and $8 billion next year from its MI300, according to buy-side investors’ expectations.

According to Insider Monkey’s third quarter database, 110 hedge funds were bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD), compared to 112 funds in the prior quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with 12.4 million shares worth $1.28 billion. 

White Falcon Capital Management stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2023 investor letter:

“It is important to note that the returns depicted above actually originated in the market turmoil of 2022 and were only realized in 2023. We assess that about 75% of the returns in 2023 were derived from just 35% of the portfolio. Notably, the technology companies we acquired in 2022 – Advanced Micro Devices, Inc. (NASDAQ:AMD), Amazon, Docebo, NU, Rover – performed exceptionally well. In hindsight, the decision to allocate to technology stocks appears straightforward; but it actually demanded courage and conviction to buy and add to these stocks during the fear and uncertainty of the 2022 bear market.

The top 5 positions in the portfolio were: Precious Metals royalty basket, Nu Holdings, AMD Amazon.com and Converge Technology Services. AMD has worked out great for us but we must admit that it has gotten expensive. AI was not part of our original investment thesis and AMD is a great reminder of how one can get ‘lucky’ investing in quality businesses run by competent management teams (ditto for Amazon).”

7. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 112

Quarterly Revenue Growth: 11.60%

Adobe Inc. (NASDAQ:ADBE), a diversified software company, operates globally through three segments – Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products and services for content creation and promotion, including the flagship product Creative Cloud. The Digital Experience segment provides a platform for brands and businesses to manage and optimize customer experiences. The Publishing and Advertising segment offers various products and services, such as e-learning solutions and Advertising Cloud offerings. 

On December 13, Adobe Inc. (NASDAQ:ADBE) reported a Q4 non-GAAP EPS of $4.27 and a revenue of $5.05 billion, outperforming Wall Street estimates by $0.13 and $30 million, respectively. The company repurchased approximately 1.8 million shares during the fourth quarter.

According to Insider Monkey’s third quarter database, 112 hedge funds were bullish on Adobe Inc. (NASDAQ:ADBE), compared to 109 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 4.5 million shares worth $2.3 billion. 

Here is what Polen Global Growth has to say about Adobe Inc. (NASDAQ:ADBE) in its Q3 2023 investor letter:

“Both Alphabet and Adobe’s businesses continue to perform well. With respect to Adobe, the most recent quarter delivered more of the same with constant currency revenue growing 13%, margin expansion, and over 2% of shares outstanding repurchased for non-GAAP earnings growth of over 20%. We believe its approach to GenAI through Firefly, which guarantees safe content because it trains on Adobe Stock, will continue to be attractive to enterprises. The counter to GenAI, and something we are keeping an eye on with Alphabet and Adobe, is that it requires heavy investment. While both businesses can leverage their scale and manage costs in other areas, we expect the investment in future growth through GenAI will weigh on company-wide margins over the near term.”

6. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 122

Quarterly Revenue Growth: 11.30%

Salesforce, Inc. (NYSE:CRM) is a global provider of customer relationship management technology, facilitating the connection between companies and customers. The company’s services include sales tools for data management, lead monitoring, progress tracking, and analytics. Salesforce also offers a platform allowing businesses to build custom apps, an online learning platform, and Slack for collaboration. 

On January 30, BofA designated Salesforce, Inc. (NYSE:CRM) as one of their top picks for 2024. According to BofA Analyst Brad Sills, Salesforce is strategically positioned to further gain market share in the cumulative $200 billion market. Sills highlighted Salesforce’s competitive advantage with a significant market share of only 15% and a robust moat derived from its extensive installed base of over 150,000 customers in the core sales/front office category.

According to Insider Monkey’s third quarter database, 122 hedge funds were bullish on Salesforce, Inc. (NYSE:CRM), same as the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with roughly 15 million shares worth $4 billion. 

In addition to Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Mastercard Incorporated (NYSE:MA), Salesforce, Inc. (NYSE:CRM) ranks 6th on our list of the top cheap stocks for beginners in 2024. 

Polen Focus Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its fourth quarter 2023 investor letter:

“In the fourth quarter, the top relative and absolute contributors to the Portfolio’s performance were Netflix, ServiceNow, and Salesforce, Inc. (NYSE:CRM).

Salesforce has continued to grow its revenues at what we see as a healthy rate despite market concerns about the impact of the weaker macroeconomy on its business and penetration rates in its core CRM offering. Even its most mature and largest offerings, Sales Cloud and Service Cloud, are still growing revenue at double-digit rates. In addition, management realized that their cost structure, especially in salespeople, had gotten too bloated. Over the past year and a half, the company has run a much more streamlined expense structure that has led to strong operating margin expansion and earnings growth. Importantly, we do not feel Salesforce has cut into its innovation or sales muscle through these cost cuts but has eliminated unnecessary excess fat from the organization.”

5. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 140

Quarterly Revenue Growth: 12.60%

Mastercard Incorporated (NYSE:MA), a global technology company, specializes in transaction processing and payment-related products and services. The company also offers analytics, consulting, managed services, and other solutions for e-commerce merchants. It is one of the best stocks to invest for beginners in 2024. On February 6, Mastercard Incorporated (NYSE:MA) declared a quarterly dividend of $0.66 per share, in line with previous. The dividend is payable on May 9, to shareholders of record on April 9. 

On January 31, Mastercard Incorporated (NYSE:MA) reported a Q4 non-GAAP EPS of $3.18 and a revenue of $6.5 billion, topping Wall Street estimates by $0.10 and $20 million, respectively. 

According to Insider Monkey’s third quarter database, Mastercard Incorporated (NYSE:MA) was part of 140 hedge fund portfolios, compared to 139 in the preceding quarter. Charles Akre’s Akre Capital Management is the largest stakeholder of the company, with 5.85 million shares worth $2.3 billion. 

Ensemble Capital Management stated the following regarding Mastercard Incorporated (NYSE:MA) in its fourth quarter 2023 investor letter:

“Mastercard Incorporated (NYSE:MA) (7.21% weight in the Fund): Payment companies are data companies. As we discussed last quarter in our write up of Mastercard, merchants can generate significant value from analyzing payment data to better understand their customers. Mastercard has long built AI-based products to enhance payment security and provide merchants with rich data analytics. In December, they rolled out Muse, a new online shopping companion that merchants who utilize certain Mastercard services can install on their own websites.

Muse seeks to replicate the in store experience of working with a salesclerk by allowing the customer to use natural language to browse products. Online shopping already works well if you know exactly what you are looking for, but Muse is striving to help customers find things to buy even when they aren’t sure what they are looking for.

Mastercard (7.21% weight in the Fund): In late October, Mastercard reported earnings that investors interpreted as pointing to a near term slowdown in payment growth. The stock fell 5.6% on the day. By the end of the next week, the stock had recovered its losses and went on to reach a new all time high on the last day of the year. But the 7.9% gain on the quarter slightly trailed the S&P 500.”

4. Uber Technologies, Inc. (NYSE:UBER)

Number of Hedge Fund Holders: 146

Quarterly Revenue Growth: 11.40%

Uber Technologies, Inc. (NYSE:UBER) is one of the best cheap beginner stocks for 2024. In the fourth quarter of 2023, Uber Technologies, Inc. (NYSE:UBER) said there was a 22% year-over-year increase in gross bookings, amounting to $37.6 billion. Trips during the quarter experienced a 24% year-over-year growth, totaling 2.6 billion, equivalent to an average of around 28 million trips per day. On February 7, Uber reported a Q4 GAAP EPS of $0.66 and a revenue of $9.9 billion, exceeding Wall Street estimates by $0.49 and $140 million, respectively. 

According to Insider Monkey’s third quarter database, 146 hedge funds were bullish on Uber Technologies, Inc. (NYSE:UBER), compared to 144 funds in the earlier quarter. Brad Gerstner’s Altimeter Capital Management is the biggest stakeholder of the company, with 13.3 million shares worth $613.35 million. 

RiverPark Advisors made the following comment about Uber Technologies, Inc. (NYSE:UBER) in its Q3 2023 investor letter:

“Uber Technologies, Inc. (NYSE:UBER): UBER was the top contributor in the quarter following a better-than-expected 2Q23 earnings report and 3Q23 guidance. Gross bookings of $33.6 billion were up 16% year over year. Mobility gross bookings of $17 billion grew 25% over last year driven by a combination of product innovation and driver availability. Delivery gross bookings of $16 billion were up 12% from last year. 2Q Adjusted EBITDA of $916 million, up $552 million year over year, significantly beat Street estimates of $845 million and the company generated $1.1 billion of free cash flow. Management guided to continuing growth in 3Q Gross Bookings (17%-20% growth) and Adjusted EBITDA (of $975-1,025 million).

UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its 130 million users (by comparison, Amazon Prime has 200 million members) and penetrate new markets of on-demand services, such as package and grocery delivery, travel, and worker staffing for shift work. Given its $4.3 billion of unrestricted cash and $4.4 billion of investments, the company’s enterprise value of $95 billion equates to just over 20x next year’s estimated free cash flow.”

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 163

Quarterly Revenue Growth: 13.50%

Alphabet Inc. (NASDAQ:GOOG) ranks 3rd on our list of the best stocks to invest in 2024 for beginners. On January 30, Alphabet Inc. (NASDAQ:GOOG) reported Q4 GAAP earnings per share of $1.64 and a revenue of $86.31 billion, outperforming Wall Street estimates by $0.04 and $1.04 billion, respectively. Revenue for the period increased 13.5% in the December quarter. 

According to Insider Monkey’s third quarter database, 163 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 152 funds in the last quarter. Harris Associates is one of the largest stakeholders of the company, with 23.4 million shares worth $3 billion. 

The FPA Crescent Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2023 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) continued going from strength to strength during 2023 despite concerns that competition may infringe on the company’s dominant position in Search. Thus far, Alphabet has continued to hold its own, and we look forward to seeing how the company incorporates further AI developments across the Alphabet ecosystem. Lastly, we are hopeful that the impending arrival of a new CFO will bring a renewed focus on efficiency – an area where we believe Alphabet has ample room for improvement.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286

Quarterly Revenue Growth: 13.90%

Amazon.com, Inc. (NASDAQ:AMZN) is one of the best cheap beginner stocks for 2024. On February 2, banks like Stifel and RBC maintained high ratings for the stock following a 13% increase in North American revenue to $105.5 billion, surpassing the consensus of $102.9 billion. Additionally, international sales amounted to $40.2 billion, exceeding the consensus of $39 billion. Amazon.com, Inc. (NASDAQ:AMZN) has witnessed rising profits in each of the last four quarters, attributed to improved efficiencies and the return to growth for Amazon Web Services.

According to Insider Monkey’s third quarter database, 286 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 278 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is a significant position holder in the company, with 14 million shares worth $1.80 billion. 

Polen Focus Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

“For the full year, the top relative and absolute contributors were Amazon.com, Inc. (NASDAQ:AMZN), Salesforce, and ServiceNow. Amazon shares appreciated 88% in 2023, driven primarily by rapidly expanding operating profit margins and free cash flow growth. After the pandemic, Amazon experienced a period of inefficiency and overinvestment in its distribution and logistics infrastructure. Amazon is now leveraging these investments as growth returned to its e-commerce business in 2023 after a highly unusual 2022. At the same time, Amazon’s rapidly growing and high-margin advertising business is contributing strongly to the entire company’s operating profit growth. The AWS (Amazon Web Services) cloud infrastructure and services business continued to slow in 2023 as customers anticipating a more difficult economic environment looked to save money on their cloud spend, but these cloud spending optimizations began to stabilize in the second half of 2023. We now expect customer interest in generative AI will begin to contribute to growth.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 306

Quarterly Revenue Growth: 17.60%

Microsoft Corporation (NASDAQ:MSFT) ranks 1st on our list of the best stocks to invest in 2024 for beginners. On January 31, Microsoft reported December quarter results that exceeded expectations, earning praise from Wall Street. The positive reception suggests that the advantages the company is experiencing from artificial intelligence are just starting. Notably, AI contributed to a six-percentage-point growth for Azure in the quarter, leading to a 30% growth, surpassing the company’s earlier guidance. J.P. Morgan analyst Mark Murphy highlighted Microsoft’s “solid” performance and the positive impact of AI, attributing it to the company’s ongoing execution and a stable business environment.

According to Insider Monkey’s third quarter database, 306 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 300 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the leading position holder in the company, with 39.2 million shares worth $12.4 billion. 

Madison Sustainable Equity Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:

“Microsoft Corporation’s (NASDAQ:MSFT) sustainable scorecard was updated with an unchanged rating of Above Average. The company’s board has an official Environmental, Social, and Public Policy Committee in addition to the traditional Audit, Compensation, and Governance committees. For ten years, Microsoft has publicly released data measuring the diversity of its workforce. With the prominence of Artificial Intelligence (AI), the company has launched a 5-point blueprint for governing AI to address public policy and regulation. Environmentally, Microsoft has multiple programs to be carbon negative by 2030. The company has signed Purchase Power Agreements for carbon-free energy totaling 13.5 Gigawatts.”

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Disclosure: None. 10 Best Stocks To Invest In 2024 For Beginners is originally published on Insider Monkey.