In this article, we discuss the 12 Best Beginner Stocks to Buy According to Analysts.
Stronger-than-expected corporate profits and the prospect of the US Federal Reserve cutting interest rates are the catalysts likely to push equity markets higher. That’s the stance held at RBC Capital Markets as they expect the S&P 500 to edge higher in the second half of the year.
RBC’s head of US equity strategy, Lori Calvasina, has reiterated that the S&P 500 has what it takes to power through 7,100, given the bullish momentum in the equity market. Nevertheless, investors should be cautious given seasonal patterns that come into play in October.
“Although we are nudging our 2025 price target up a little, and articulating one for 2H26 that anticipates a move higher in the S & P 500 over the next 12-15 months, we do remain on guard for choppy conditions in U.S. equities between now and year-end 2025,” Calvasina said. “Our main concerns have been poor seasonal patterns in September and October in recent years, as well as stalling valuations in the S&P 500.
Despite concerns about the lackluster job growth over the past few months, stocks remain at all-time highs. According to Dubravko Lakos-Bujas, the global head of market strategy at JPMorgan, this is partially due to investors’ perception that they are pricing in a “Goldilocks scenario” for equities, which alludes to the hope that the economy will be sturdy enough to withstand a recession while still being cool enough to accept Fed rate cuts.
While investing in stocks offers a powerful way to grow wealth, the process can be intimidating, especially for beginners in the investment world. The challenge has constantly been identifying stocks poised for growth while backed by solid underlying fundamentals.
Some of the best beginner stocks to buy, according to analysts, are those with an impressive record in growing sales and returning value to shareholders.
Our Methodology
To identify the best beginner stocks to buy, according to analysts, we sifted through ETFs and financial media reports. We then selected companies with a 10-year revenue CAGR of 7% to 15% (a high single-digit to mid-teens growth rate is our definition of a mature and reliable grower). Finally, we settled on stocks with analysts expecting more than 10% (as of September 16) and popular among elite hedge funds (as of Q2 2025). Finally, we ranked the stocks in ascending order based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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).
Best Beginner Stocks to Buy According to Analysts
12. Booking Holdings Inc. (NASDAQ:BKNG)
Stock Upside Potential: 12.14%
10-Year Revenue Growth Rate: 10.9%
Number of Hedge Fund Holders: 92
Booking Holdings Inc. (NASDAQ:BKNG) is one of the best beginner stocks to buy, according to analysts. On September 11 at the Goldman Sachs Communicopia + Technology Conference 2025, the company affirmed plans to expand its footprint as it also seeks to enhance customer experiences through technology.
Part of the plan entails leveraging artificial intelligence to enable personalized travel planning as part of the connected trip vision. The company is also exploring strategic collaborations with tech giants such as OpenAI, Google, and Microsoft as it seeks to develop advanced artificial intelligence tools. Additionally, it is enhancing investments in AI to improve customer service, product development, and marketing.
AI integration is a key step as Booking Holdings continues to capitalize on alternative bookings by combining traditional and alternative accommodations on a single platform and presenting them to consumers.
“We continue to grow. Again, it’s now a really sizable number of listings. We have 8.4 million listings at the end of the second quarter globally in alternative accommodations only. That grew 8% year over year. We’re very much focused on continuing to drive that growth,” said CFO Ewout Steenbergen.
Booking Holdings Inc. (NASDAQ:BKNG) is a global online travel services provider that helps people book accommodations, flights, car rentals, and other travel experiences through its family of brands like Booking.com, Priceline, Agoda, and KAYAK.
11. Costco Wholesale Corporation (NASDAQ:COST)
Stock Upside Potential: 13.27%
10-Year Revenue Growth Rate: 9.8%
Number of Hedge Fund Holders: 91
Costco Wholesale Corporation (NASDAQ:COST) is one of the best beginner stocks to buy, according to analysts. On September 5, Truist Securities reiterated its ‘Hold’ rating on the stock and a $1,042 price target. The positive stance follows a strong August sales report.
The retail giant posted a 6.7% increase in sales in August, representing a 20 basis points improvement from July’s sales numbers. The August sales growth rate was slightly higher compared to the comparable sales growth of 6% for the fourth fiscal quarter. Net sales in August totaled $21.56 billion, representing an 8.7% increase from the same period last year.
The higher sales growth rate underscores Costco’s ability to attract value-conscious customers with competitive offerings. Nevertheless, Truist Securities has raised valuation concerns, as the stock is trading at 50 times the estimated earnings per share for calendar year 2025.
Costco Wholesale Corporation (NASDAQ:COST) operates membership-based warehouses and e-commerce sites, offering a limited selection of quality, national-brand, and private-label products at low prices to both businesses and individuals.
10. S&P Global Inc. (NYSE:SPGI)
Stock Upside Potential: 14.92%
10-Year Revenue Growth Rate: 10.9%
Number of Hedge Fund Holders: 106
S&P Global Inc. (NYSE:SPGI) is one of the best beginner stocks to buy, according to analysts. On September 9, CEO Martina Cheung reiterated that the company’s strategic priorities are on artificial integration and data management.
The company is increasingly integrating artificial intelligence into its operations to enhance products and internal processes. While two-thirds of the company’s employees are already using the S&P Spark Assist Platform, the integration is expected to result in a significant reduction in headcount.
S&P is placing more emphasis on artificial intelligence as its clients, which include financial institutions, begin experimenting with the technology in the hope that it will increase employee productivity and enable cost savings. The company is exploring strategic partnerships with AI companies to make its data accessible to customers who leverage AI tools.
S&P Global Inc. (NYSE:SPGI) is a financial information and analytics company that provides data, insights, and benchmarks across the global capital, commodity, and automotive markets. The company’s key offerings include credit ratings from S&P Global Ratings and data and analytics from S&P Global Market Intelligence.
Hedge Fund Resource Center