13 Best Cheap Stocks to Invest in for Beginners

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

Forward P/E: 14.16

Number of Hedge Fund Holders: 123

JPMorgan Chase & Co. (NYSE:JPM) is the second-best cheap stock for beginners to invest in. It is a financial holding company that provides financial and investment banking services. The company focuses on commercial banking, investment banking, financial transaction processing, asset management, and more. Its operations are divided into the following segments: Consumer and Community Banking (CCB), Commercial and Investment Bank (CIB), Asset and Wealth Management (AWM), and Corporate.

On May 8, Morgan Stanley analyst Betsy Graseck maintained their neutral stance on JPMorgan Chase & Co. (NYSE:JPM) and gave it a Hold rating. However, the analyst highlighted the stable outlook for the company amid economic volatility, claiming that she does not expect any changes in its financial guidance for 2025 despite the uncertainty surrounding tariff impacts and the current economic volatility. This includes expenses, net interest income, and card net charge-offs.

The analyst also noted that JPMorgan Chase & Co. (NYSE:JPM) will likely maintain its through-the-cycle return on tangible common equity (ROTCE) target of approximately 17%. However, she anticipates it surpassing this target in the coming years, supported by efficient capital management and a higher interest rate environment. The company also holds potential for accelerated share buybacks driven by excess capital, which could further improve ROTCE.