12 Best Stocks to Invest in For Beginners

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In this article, we will look at the 12 Best Stocks to Invest in For Beginners.

On August 14, Paul Hickey, Bespoke Investment Group co-founder, appeared on CNBC’s ‘Closing Bell: Overtime’ to talk about what he’s seeing in market breadth as the S&P 500 and NASDAQ close at records.

He stated that the day’s action was rotation within the market along with breadth improvement, which is exactly what investors wanted to see, especially after yesterday, with the market closing at an all-time high yet less than 60% of the S&P 500 stocks trading above their 50-day moving average.

READ ALSO: 10 Best NYSE Stocks to Buy Under $20 and 12 Best Medical Device Stocks to Buy According to Analysts

Hickey thus said that the number is declining over time, which suggests a narrowing of the rally.

While he told CNBC that short-term divergences aren’t a huge concern, he did add that the longer they last, the more concerning they can become. He added that it doesn’t take a lot of rotation from the big mega caps to cause a much bigger move in the rest of the market.

With these trends in view, let’s look at the best stocks to invest in for beginners.

12 Best Stocks to Invest in For Beginners

A person looking intently at a broker’s screen full of stock information, implying the company’s stock market expertise.

Our Methodology

We sifted through ETFs and financial media reports to compile a list of best beginner-friendly stocks. We then selected 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, as of Q1 2025.

Note: All data was sourced on August 14.

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).

12 Best Stocks to Invest in For Beginners

12. Vistra Corp. (NYSE:VST)

10-Year Revenue Growth Rate: 12.74%

Number of Hedge Fund Holders: 102

Vistra Corp. (NYSE:VST) is one of the best stocks to invest in for beginners. On August 11, Jefferies analyst Julien Dumoulin-Smith raised the firm’s price target on Vistra Corp. (NYSE:VST) to $241 from $145, keeping a Buy rating on the shares.

The analyst told investors in a research note that the firm is continually seeing value in the shares despite the rally over the past three months.

The analyst lifted EBITDA estimates to take into account “strong” expected free cash flow generation and increased commodity and capacity pricing.

Dumoulin-Smith added that the June passing of the Texas SB6 has caused investors to look forward to a Comanche deal announcement.

Vistra Corp. (NYSE:VST) provides electricity and power generation. Its operations are divided into the following segments: Retail, Texas, East, West, Sunset, and Asset Closure.

11. Booking Holdings Inc. (NASDAQ:BKNG)

10-Year Revenue Growth Rate: 11.02%

Number of Hedge Fund Holders: 102

Booking Holdings Inc. (NASDAQ:BKNG) is one of the best stocks to invest in for beginners. On August 1, Susquehanna raised the firm’s price target on Booking Holdings Inc. (NASDAQ:BKNG) to $6,500 from $6,000, keeping a positive rating on the shares.

The firm told investors that Booking Holdings Inc. (NASDAQ:BKNG) delivered a strong Q2 with gross bookings, room nights, and revenue all surpassing expectations.

Management added that travel demand has been steady so far in Q3. However, it stated that concerns such as macro and geopolitical uncertainty may affect performance, especially as Booking Holdings Inc. (NASDAQ:BKNG) laps tougher comps in August and September.

Booking Holdings Inc. (NASDAQ:BKNG) provides online travel and related solutions, such as accommodation reservations. The company offers its services through various brands, including Booking.com, Priceline, Agoda, KAYAK, and OpenTable.

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