13 Best Cheap Stocks to Invest in for Beginners

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1. UnitedHealth Group Incorporated (NYSE:UNH)

Forward P/E: 14.45

Number of Hedge Fund Holders: 150 

UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments. The company is one of the top cheap stocks to add to your portfolio if you are a beginner.

UnitedHealth Group Incorporated’s (NYSE:UNH) stock is facing troubles, primarily because of the sudden resignation of the company’s former CEO Andrew Witty, the immediate appointment of Stephen Hemsley in his place, and the suspension of the company’s financial outlook for 2025. Although the stock’s price fell, Wall Street remains bullish on UnitedHealth Group Incorporated (NYSE:UNH).

Despite the market sell-off amid the company’s CEO transition and financial uncertainty, analysts believe this is a “time to buy the dip”. On May 14, Piper Sandler analyst Jessica Tassan gave UnitedHealth Group Incorporated (NYSE:UNH) a buy rating, viewing Hemsley’s return as CEO as a positive factor and stating, “We believe Mr. Hemsley is the right person to turn around UNH.”

Tassan said that Hemsley can improve clinical outcomes, identify UnitedHealth Group Incorporated’s (NYSE:UNH) potential to control cost trends, and optimize the healthcare experience.

The same day, Cantor Fitzgerald analyst Sarah James lowered the price target on UnitedHealth Group Incorporated (NYSE:UNH) to $440 from $600 but kept a Buy rating. She said the notable stock drop “is likely the bottom” and presents a “buying opportunity for long-term returns.”

Overall, UNH ranks first among the best cheap stocks for beginners to invest in. While we acknowledge the potential of cheap stocks for beginners, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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