13 Best Cheap Stocks to Invest in for Beginners

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6. Johnson & Johnson (NYSE:JNJ)

Forward P/E: 14.53

Number of Hedge Fund Holders: 98

Johnson & Johnson (NYSE:JNJ) is the sixth-best cheap stock to buy now for beginners. It develops, manufactures, and sells products in the healthcare field. The company operates through two segments: Innovative Medicine and MedTech. The MedTech segment includes various medical devices and products used in cardiovascular intervention, orthopedics, interventional solutions, surgery, and vision fields.

On May 14, Goldman Sachs analyst Asad Haider maintained a Buy rating on Johnson & Johnson (NYSE:JNJ), with the associated price target of $176.00 remaining the same. The analyst highlighted the company’s growth potential and strong market position, reasoning that the recent Digestive Disease Week reflected strong advancements, especially with Tremfya.

Tremfya is rapidly growing in ulcerative colitis and gaining force in the Inflammatory Bowel Disease (IBD) market. Key opinion leaders (KOLs) are giving the product a favorable reception, which reflects its commercial success.

The analyst also sees Tremfya’s subcutaneous administration as a key advantage for Johnson & Johnson (NYSE:JNJ), as it streamlines office workflows and facilitates expedited patient onboarding. The company’s strong fiscal Q1 2025 results also surpassed consensus expectations, further bolstering the optimistic outlook for Johnson & Johnson’s (NYSE:JNJ) pharmaceutical franchise.

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