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11 Best Stocks For Beginners With Little Money

In this article, we discuss 11 best stocks for beginners with little money. If you want to see more stocks in this selection, check out 5 Best Stocks For Beginners With Little Money

A new CNBC Delivering Alpha investor survey from September 27, which polled nearly 400 chief investment officers, equity strategists, portfolio managers, and CNBC money managers, showed that 58% of the survey participants said that their primary concern for the stock market currently is the Federal Reserve being overly aggressive. Attempts to beat inflation are setting off a huge sell-off in risk assets. “Get defensive, times are getting tougher”, said Seema Shah, chief global strategist at Principal Global Investors. 

Lauren Goodwin, economist and portfolio strategist at New York Life Investments, noted that corporate earnings have not priced in the weak economic activity. Goodwin stated that there is more volatility in the market ahead, given that primary economic indicators have not bottomed yet. However, even though investors anticipate wild swings in the markets, they still believe the U.S. to be the best place to put their money, as per the CNBC survey.

Although the stock market is tumultuous at the moment, it is always a good idea to pick up quality stocks that are trading at meaningful discounts. Beginners with little money who want to jump into investing can look into firms like AT&T Inc. (NYSE:T), Uber Technologies, Inc. (NYSE:UBER), and CSX Corporation (NASDAQ:CSX) for a balanced portfolio. 

Our Methodology 

We selected the following stocks for beginners based on positive analyst ratings and future growth potential. These stocks were priced under $30 as of October 26. We have arranged the list according to the hedge fund sentiment around the securities, which was assessed from Insider Monkey’s Q2 2022 database of about 900 elite hedge funds. 

Best Stocks For Beginners With Little Money

11. Lucid Group, Inc. (NASDAQ:LCID)

Number of Hedge Fund Holders: 16

Share Price as of October 26: $14.17

Lucid Group, Inc. (NASDAQ:LCID) is a California-based technology and automotive company that designs, engineers, and builds electric vehicles, EV powertrains, and battery systems. Lucid Group, Inc. (NASDAQ:LCID) built 2,282 vehicles during Q3 2022 at its Arizona manufacturing facility, more than tripling the number produced in the second quarter. The company delivered 1,398 vehicles during the same period. Chinese President Xi Jinping’s latest support for EVs and technology is being interpreted by analysts as positive for the sector. Lucid Group, Inc. (NASDAQ:LCID) stock also gained 8.50% on October 17 as a result. It is one of the best beginner stocks to invest in. 

On September 27, Cantor Fitzgerald analyst Andres Sheppard initiated coverage of Lucid Group, Inc. (NASDAQ:LCID) with an Overweight rating and a $23 price target. The analyst believes Lucid Group, Inc. (NASDAQ:LCID)’s luxury and premium vehicles offer higher efficiency, longer range, quicker charging, and are more spacious compared to peers, the analyst told investors. The analyst expects Lucid Group, Inc. (NASDAQ:LCID) to conservatively capture nearly 2% share of the Global EV market by 2026.

According to Insider Monkey’s data, 16 hedge funds were long Lucid Group, Inc. (NASDAQ:LCID) at the end of Q2 2022, with combined stakes worth $173.7 million, compared to 16 funds in the prior quarter worth $159 million. 

Like AT&T Inc. (NYSE:T), Uber Technologies, Inc. (NYSE:UBER), and CSX Corporation (NASDAQ:CSX), Lucid Group, Inc. (NASDAQ:LCID) is one of the best affordable stocks for beginners. 

10. NiSource Inc. (NYSE:NI)

Number of Hedge Fund Holders: 23

Share Price as of October 26: $25.19

NiSource Inc. (NYSE:NI) is an Indiana-based energy holding company that provides regulated natural gas and electricity in the United States. On August 9, NiSource Inc. (NYSE:NI) declared a $0.235 per share quarterly dividend, in line with previous. The dividend is payable on November 18, to shareholders of record on October 31. The dividend yield on October 26 came in at 3.73%. 

On October 24, Guggenheim analyst Shahriar Pourreza maintained a Buy recommendation on NiSource Inc. (NYSE:NI) but lowered the price target on the shares to $27 from $32. The analyst is refreshing select estimates ahead of Q3 earnings season from the Power and Utilities group to adjust for seasonality and to re-mark to the latest commodity curves. 

According to Insider Monkey’s second quarter database, 23 hedge funds were bullish on NiSource Inc. (NYSE:NI), compared to 28 funds in the prior quarter. Israel Englander’s Millennium Management is the biggest position holder in the company, with 5.2 million shares worth $154 million. 

9. PPL Corporation (NYSE:PPL)

Number of Hedge Fund Holders: 28

Share Price as of October 26: $25.72

PPL Corporation (NYSE:PPL) is a Pennsylvania-based utility holding company, delivering electricity and natural gas in the United States and the United Kingdom. On October 24, PPL Corporation (NYSE:PPL) and Belgium’s Elia Group announced a collaboration agreement to develop and operate transmission assets to integrate future offshore wind farms to the onshore grid in New England. PPL TransLink and WindGrid, the subsidiaries of the companies, have partnered to combine their expertise to deliver innovative transmission solutions. PPL Corporation (NYSE:PPL) is one of the best beginner stocks to invest in. 

On October 24, investment advisory Guggenheim maintained a Buy recommendation on PPL Corporation (NYSE:PPL) but trimmed the firm’s price target on the shares to $27 from $33. Analyst Shahriar Pourreza issued the ratings update. 

According to Insider Monkey’s data, 28 hedge funds were long PPL Corporation (NYSE:PPL) at the end of June 2022, compared to 26 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 5.8 million shares valued at $157 million.  

Here is what Miller/Howard Investments has to say about PPL Corporation (NYSE:PPL) in its Q1 2021 investor letter:

“PPL Corp. (PPL) announced the sale of its UK utility business to National Grid (NGG). In a separate transaction, PPL acquired NGG’s Rhode Island utility business. Once the dust settles, we expect PPL to rerate toward US peers.”

8. Dropbox, Inc. (NASDAQ:DBX)

Number of Hedge Fund Holders: 32

Share Price as of October 26: $21.78

Dropbox, Inc. (NASDAQ:DBX) was incorporated in 2007 and is headquartered in San Francisco, California. The company provides a content collaboration platform to individuals and enterprises worldwide. On September 12, KeyBanc analyst Thomas Blakey initiated coverage of Dropbox, Inc. (NASDAQ:DBX) with an Overweight rating and a $30 price target. Trends in digitization, collaboration, and security will drive revenue growth, while workflow and value-added services will potentially reduce churn, increase ARPU, and sustain profitable growth for Dropbox, Inc. (NASDAQ:DBX), the analyst told investors. Dropbox, Inc. (NASDAQ:DBX) is one of the premier beginner stocks to watch. 

According to the second quarter database of Insider Monkey, 32 hedge funds held stakes worth $751.4 million in Dropbox, Inc. (NASDAQ:DBX), compared to 44 funds in the prior quarter worth $814.4 million. Jim Simons’ Renaissance Technologies is the leading position holder in the company, with 9.6 million shares valued at $201 million. 

Here is what Arch Capital has to say about Dropbox, Inc. (NASDAQ:DBX) in its Q2 2022 investor letter:

“In March, we decided to buy Dropbox with some of our cash position. We had sold the stock in 2021 due solely to valuation concerns, but with the stock cratering in early 2022, we decided to revisit the company. It turns out, the business was still as strong as ever. If you want more detail on why we like Dropbox, you can read our report from back in Q1 here.”

7. Energy Transfer LP (NYSE:ET)

Number of Hedge Fund Holders: 36

Share Price as of October 26: $12.43

Next on our list of the best beginner stocks is Energy Transfer LP (NYSE:ET), a Texas-based company providing natural gas transportation pipelines and natural gas storage facilities. On October 25, Energy Transfer LP (NYSE:ET) declared a $0.265 per share quarterly dividend, a 15.2% increase from its prior dividend of $0.230. The dividend is distributable on November 21, to shareholders of record on November 24. The forward yield was 8.78%. Future increases to the dividend distribution will be determined quarterly, and the company expects to return to an annual distribution of $1.22 per share, while balancing its leverage target, growth opportunities, and share buybacks.

On October 19, Morgan Stanley analyst Robert Kad raised the price target on Energy Transfer LP (NYSE:ET) to $17 from $15 and reiterated an Overweight rating on the shares. Midstream earnings season is set to start and he anticipates fewer material earnings beats compared to Q2, but “nonetheless largely in-line results,” the analyst told investors. Though the analyst does not forecast many significant revisions to capital allocation plans, potential buyback acceleration could be a positive catalyst for some firms. 

According to Insider Monkey’s data, Energy Transfer LP (NYSE:ET) was part of 36 hedge fund portfolios at the end of June 2022, compared to 31 funds in the preceding quarter. David Abrams’ Abrams Capital Management is a significant stakeholder of the company, with more than 22 million shares worth nearly $221 million. 

Miller Value Partners, an investment firm, talked about Energy Transfer L.P. (NYSE:ET) in its Q2 2021 investor letter. Here is what the fund said:

“Energy Transfer LP (ET) rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Corps of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash flow to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”

6. Kinder Morgan, Inc. (NYSE:KMI)

Number of Hedge Fund Holders: 41

Share Price as of October 26: $17.77

Kinder Morgan, Inc. (NYSE:KMI) is headquartered in Houston, Texas, and it operates as an energy infrastructure company in North America. The company has four segments – Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. Kinder Morgan, Inc. (NYSE:KMI)’s Q3 2022 revenue came in at $5.18 billion, up 35.6% year-over-year, beating estimates by $630 million. On October 19, Kinder Morgan, Inc. (NYSE:KMI) declared a $0.2775 per share quarterly dividend, in line with previous. The dividend is payable on November 15, to shareholders of record on October 31. The forward yield was 6.17%. 

On October 19, Barclays analyst Theresa Chen maintained an Overweight rating on Kinder Morgan, Inc. (NYSE:KMI) but trimmed the price target on the shares to $20 from $21. Keeping in mind the macro headwinds, the analyst likes the “defensiveness” of primary infrastructure assets in the North America midstream and refining space. 

According to Insider Monkey’s Q2 data, 41 hedge funds were bullish on Kinder Morgan, Inc. (NYSE:KMI), compared to 40 funds in the last quarter. William B. Gray’s Orbis Investment Management is the largest position holder in the company, with 21.7 million shares valued at $363.2 million. 

In addition to AT&T Inc. (NYSE:T), Uber Technologies, Inc. (NYSE:UBER), and CSX Corporation (NASDAQ:CSX), elite hedge funds are piling into Kinder Morgan, Inc. (NYSE:KMI).

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Disclosure: None. 11 Best Stocks For Beginners With Little Money is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

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As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

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One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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The Hedge Fund Secret That’s Starting to Leak Out

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

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But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…