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.
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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.
10. The Charles Schwab Corporation (NYSE:SCHW)
10-Year Revenue Growth Rate: 13.45%
Number of Hedge Fund Holders: 102
The Charles Schwab Corporation (NYSE:SCHW) is one of the best stocks to invest in for beginners. On July 29, Morgan Stanley lifted the firm’s price target on The Charles Schwab Corporation (NYSE:SCHW) to $131 from $117 while keeping an Overweight rating on the shares.
The firm told investors that it raised its fiscal year 2025 and fiscal year 2026 EPS estimates by 5% and 7%, respectively, after Q2 earnings. It attributed this update to several factors, including increased trading revenues, net interest margin expansion, and asset management fees.
The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company that engages in securities brokerage, wealth management, custody, asset management, and financial advisory services. Its operations are divided into Advisor Services and Investor Services segments.
9. Intuitive Surgical, Inc. (NASDAQ:ISRG)
10-Year Revenue Growth Rate: 15.06%
Number of Hedge Fund Holders: 106
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the best stocks to invest in for beginners. On July 24, Baird raised the firm’s price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) to $600 from $590, keeping an Outperform rating on the shares.
The firm told investors that the limited share rally after earnings took it by surprise, reasoning that Intuitive Surgical, Inc. (NASDAQ:ISRG) reported its highest operating margin in the last 15 quarters. In addition, its Q2 results showed “stellar” revenue and earnings growth.
It added that Intuitive Surgical, Inc.’s (NASDAQ:ISRG) key performance indicators “continue to fire on all cylinders,” which is why the firm remains a buyer of the stock.
Intuitive Surgical, Inc. (NASDAQ:ISRG) has an elaborate ecosystem of services and products that provide robotic-assisted surgical solutions and invasive care. Its products include the Ion Endoluminal and the Da Vinci Surgical systems.
8. Boston Scientific Corporation (NYSE:BSX)
10-Year Revenue Growth Rate: 9.78%
Number of Hedge Fund Holders: 108
Boston Scientific Corporation (NYSE:BSX) is one of the best stocks to invest in for beginners. In a report released on August 11, Matthew Taylor from Jefferies reiterated a Buy rating on Boston Scientific Corporation (NYSE:BSX) with a price target of $130.00.
The rating update followed the company’s release of fiscal Q2 2025 earnings on July 23, with net sales for the quarter reaching $5.061 billion and reflecting a 22.8% growth on a reported basis, 21.6% on an operational basis, and 17.4% on an organic basis, all compared to the prior year period.
Boston Scientific Corporation (NYSE:BSX) also reported GAAP net income attributable to common stockholders of $797 million or $0.53 per share (EPS), compared to $324 million or $0.22 per share a year ago.
Boston Scientific Corporation (NYSE:BSX) manufactures, develops, and markets medical devices used in interventional medical procedures. Its operations are divided into Cardiovascular and MedSurg segments. The Cardiovascular segment covers Cardiology and Peripheral Interventions, while the MedSurg segment comprises Urology, Endoscopy, and Neuromodulation.
7. S&P Global Inc. (NYSE:SPGI)
10-Year Revenue Growth Rate: 11.02%
Number of Hedge Fund Holders: 108
S&P Global Inc. (NYSE:SPGI) is one of the best stocks to invest in for beginners. On August 1, BMO Capital analyst Jeffrey Silber raised the firm’s price target on S&P Global Inc. (NYSE:SPGI) to $621 from $604, keeping an Outperform rating on the shares.
The analyst told investors in a research note that S&P Global Inc. (NYSE:SPGI) reported a strong Q2 earnings beat, with much of the upside coming from Ratings and Indices.
S&P Global Inc. (NYSE:SPGI) reported Q2 results on July 31, with revenue for the quarter reaching $3.755 billion and reflecting a growth of 6% compared to Q2 2024.
Q2 2025 GAAP net income rose 6% to $1.072 billion, while GAAP diluted earnings per share increased 9% to $3.50.
Management also reported a 7% growth in adjusted net income to $1.356 billion, while adjusted diluted earnings per share increased 10% to $4.43.
S&P Global Inc. (NYSE:SPGI) provides independent and transparent analytics, ratings, benchmarks, and data to commodity and capital markets across the globe.
The company’s operations are divided into the following segments: Market Intelligence, Ratings, Commodity Insights, Mobility, Indices, and Engineering Solutions.
6. Eli Lilly and Company (NYSE:LLY)
10-Year Revenue Growth Rate: 10.50%
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the best stocks to invest in for beginners. On August 13, Cantor Fitzgerald analyst Carter Gould lowered the firm’s price target on Eli Lilly and Company (NYSE:LLY) to $825 from $975, keeping an Overweight rating on the shares.
The firm told investors that it believes that the orforglipron Phase 3 obesity data rolling in below expectations, along with the semaglutide benchmarks, create a “show-me-story” around the launch.
It added that a resolution may not be reached until late 2026, supporting the decrease in price target.
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies.
5. UnitedHealth Group Incorporated (NYSE:UNH)
10-Year Revenue Growth Rate: 11.83%
Number of Hedge Fund Holders: 139
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best stocks to invest in for beginners. Piper Sandler analyst Jessica Tassan reiterated a Buy rating on UnitedHealth Group Incorporated (NYSE:UNH) on August 5, setting a price target of $280.00.
UnitedHealth Group Incorporated (NYSE:UNH) reported that its Q2 2025 revenue underwent a $12.8 billion year-over-year growth to $111.6 billion, attributed primarily to growth within Optum and UnitedHealthcare.
Earnings from operations for the quarter were $5.2 billion, while adjusted net earnings were $4.08 per share.
Management reported a full year 2025 revenue outlook in the $445.5 billion to $448.0 billion range, with a full year 2025 earnings outlook of at least $14.65 per share.
UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments, which have solid operations.
4. Mastercard Incorporated (NYSE:MA)
10-Year Revenue Growth Rate: 12.25%
Number of Hedge Fund Holders: 155
Mastercard Incorporated (NYSE:MA) is one of the best stocks to invest in for beginners. TD Cowen analyst Bryan Bergin maintained a Buy rating on Mastercard Incorporated (NYSE:MA) on August 11, setting a $645.00 price target.
The analyst based the rating on Mastercard Incorporated’s (NYSE:MA) resilience and strategic position in the global payments landscape, stating that the company is capitalizing on the continual digitization of payments.
This is a significant growth driver for Mastercard Incorporated (NYSE:MA), according to the analyst, that the market is not fully appreciating.
The analyst added that Mastercard Incorporated (NYSE:MA) has a diverse growth strategy that is anticipated to support its growth momentum, including its VASS flywheel.
Mastercard Incorporated (NYSE:MA) is a technology company that provides payment solutions for developing and implementing debit, credit, prepaid, commercial, and payment programs via its brands.
Its portfolio includes Mastercard, Cirrus, and Maestro. The company also offers intelligence and cyber solutions.
3. Visa Inc. (NYSE:V)
10-Year Revenue Growth Rate: 11.13%
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) is one of the best stocks to invest in for beginners. In a report released on July 31, Paul Golding from Macquarie maintained a Buy rating on Visa Inc. (NYSE:V), setting a price target of $425.00.
Visa Inc. (NYSE:V) announced its fiscal Q3 2025 results on July 29, reporting a GAAP net income of $5.3 billion or $2.69 per share, reflecting a growth of 8% and 12%, respectively, compared to the same period last year.
Net revenue in fiscal Q3 2025 was $10.2 billion, a growth of 14%, which management attributed to year-over-year growth in payments volume, cross-border volume, and processed transactions. Visa Inc. (NYSE:V) also reported a net revenue growth of 14% on a constant-dollar basis.
Visa Inc. (NYSE:V) provides digital payment services. It offers credit cards, debit cards, prepaid products, global automated teller machines, and commercial payment solutions.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
10-Year Revenue Growth Rate: 14.75%
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best stocks to invest in for beginners. On August 8, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced its net revenue for July 2025.
Management reported that revenue for July on a consolidated basis was around NT$323.17 billion, reflecting a growth of 22.5% compared to June 2025 and an increase of 25.8% compared to July 2024.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also reported that revenue for January through July 2025 totaled NT$2,096.21 billion, a growth of 37.6% compared to the same period last year.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world.
Some of its prominent customers include semiconductor companies that outsource all or part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more.
1. Microsoft Corporation (NASDAQ:MSFT)
10-Year Revenue Growth Rate: 11.65%
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the best stocks to invest in for beginners. Microsoft Corporation (NASDAQ:MSFT) reported in a blog post on August 13 that it is initiating the rollout of an update for Arm-based (ARM) Windows 11 PCs.
The update introduces improvements and changes to the Xbox PC app experience, which is expanding to support game downloads and local play on Arm-based Windows 11 PCs.
The blog post stated that insiders can download titles from the Xbox PC app catalog to unlock more games for playing locally on Arm-based Windows 11 PCs. This includes titles that are offered through the PC Game Pass or Game Pass Ultimate subscription.
It added that:
“Windows and Xbox are working closely together to ensure compatibility across the catalog, and we’re developing new features that will enable more games to be played on Arm-based Windows 11 PCs in the coming months. We’re excited to team up with Insiders to continue testing and helping us enable full access to your library of games.”
Microsoft Corporation (NASDAQ:MSFT) is a technology company and the largest software developer in the world by revenue. It is the creator of the Xbox gaming console and owns a number of video gaming franchises.
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.
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