In this article, we will take a look at the 15 Best Stocks to Invest in for an 18 Year Old.
The Bureau of Labor Statistics stated on June 11 that consumer prices increased less than anticipated in May given that President Donald Trump’s tariffs had not yet had a noticeable effect on inflation. A broad indicator of goods and services across the U.S. economy, the consumer price index rose 0.1% for the month, bringing the annual inflation rate to 2.4%.
At its upcoming meeting on June 17–18, the Fed is most likely to keep interest rates unchanged, with investors anticipating that a monetary policy easing won’t occur until at least September. Echoing this, Alexandra Wilson-Elizondo, global co-chief investment officer of multi-asset solutions at Goldman Sachs Asset Management, added the following:
“If inflation stays under control or the job market weakens, the Federal Reserve will likely consider cutting interest rates down the road. We expect the Fed to remain on hold at next week’s meeting, but we see a path to a rate cut later in the year.”
On the same day, President Donald Trump announced that the United States and China had reached a trade agreement in which Beijing would supply rare earth materials and magnets, and the U.S. would admit Chinese students to its institutions and colleges. According to a White House official, the deal permits the United States to impose a 55% tariff on Chinese imports.
Considering the current market climate, it’s important for novice stock enthusiasts, such as 18-year-olds with a knack for trading, to not only spot quality equities but also look for opportunities that help balance the portfolio against risk.
Our Methodology
For this list, we sifted through stocks screeners and industry reports to note down equities with wide moats and long-term potential. These stocks received attention from mainstream media outlets and industry professionals between June 9 and June 10. These stocks were also favored by hedge fund in the first quarter of 2025.
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).
15. Biogen Inc. (NASDAQ:BIIB)
Number of Hedge Fund Holder: 52
Biogen Inc. (NASDAQ:BIIB) is one of the 15 best stocks to invest in for an 18 year old. On June 10, Biogen Inc. (NASDAQ:BIIB) gave a presentation at the Goldman Sachs 46th Annual Global Healthcare Conference 2025, highlighting its strategic planning and current challenges. The company’s investments in new product releases and its advancements into immunology and nephrology were emphasized by CFO Robin Kramer.
Notably, Biogen Inc. (NASDAQ:BIIB) anticipates that its Fit for Growth program will result in net cost reductions of $800 million by the end of the year. The company is currently focusing on nine initiatives that are focused on rare diseases and neurology and are in Phase 3 or Phase 3-ready phases. Additionally, Biogen announced that it has expanded into kidney disease and nephrology, adding three new indications, with the help of its West Coast headquarters.
Moreover, according to the firm’s management, Biogen’s upcoming Rare Disease Day will focus on primarily on rare and kidney disorders as well as assets the company acquired through the Hibio acquisition.
Biogen Inc. (NASDAQ:BIIB) is a multinational biopharmaceutical company dedicated to discovering, developing, and providing innovative treatments to patients with severe complex illnesses.
14. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holder: 60
Cardinal Health, Inc. (NYSE:CAH) is one of the 15 best stocks to invest in for an 18 year old. BofA Securities analyst Michael Cherny raised his price target for Cardinal Health, Inc. (NYSE:CAH) shares from $165 to $170 on June 10 while reiterating his Buy rating for the company’s shares. The change was made ahead of Cardinal Health’s June 12 investor day, where the company is expected to provide an updated financial outlook.
Expectations for the event are especially high, Cherny said, given Cardinal Health’s impressive performance over the past two years in addition to positive industry trends, including higher utilization and adjustments to the Inflation Reduction Act (IRA) which influence out-of-pocket costs.
In addition to potentially announcing improvements to its Pharmaceutical and Specialty Solutions EBIT growth forecasts, analysts expect Cardinal Health, Inc. (NYSE:CAH) to lay out the foundation for attaining sustainable double-digit earnings per share growth. Moreover, the company plans on updating investors about its latest forays into specialized fields, such as and Specialty networks.
Cardinal Health, Inc. (NYSE:CAH) is a multinational health care services company that provides tailored solutions for ambulatory surgery centers, pharmacies, hospitals, and healthcare systems.
13. Warner Bros. Discovery Inc. (NASDAQ:WBD)
Number of Hedge Fund Holder: 60
Warner Bros. Discovery Inc. (NASDAQ:WBD) is one of the 15 best stocks to invest in for an 18 year old. On June 10, UBS reaffirmed its Neutral rating with a stable price target of $9 for Warner Bros. Discovery Inc. (NASDAQ:WBD). The company has announced plans to split into two distinct publicly traded companies, Global Networks (GN) and Streaming & Studios (S&S).
Warner Bros. Television, Warner Bros. Motion Pictures, WB Games, DC, HBO Max, and TNT Sports International will all be part of the S&S division. The GN entity, meanwhile, will be made up of an international roster of linear TV networks as well as certain digital assets like Bleacher Report, Discovery+, and a potential CNN service.
The capital structure of each new entity has not been completely disclosed by the company. However, it is believed that Warner Bros. Discovery Inc. (NASDAQ:WBD) will be significantly influenced by the successful implementation of these initiatives.
The divide is expected to be finished midway through 2026. In the year that would follow, the company intends to sell-off its less than 20% ownership in the S&S division. This move is a component of Warner Bros. Discovery’s broader plan to increase financial stability and streamline operations.
Warner Bros. Discovery Inc. (NASDAQ:WBD) is a media and entertainment company that is divided into three segments: DTC, Studios, and Network. Additionally, it provides content via a number of distribution channels.
12. Caesars Entertainment, Inc. (NASDAQ:CZR)
Number of Hedge Fund Holder: 63
Caesars Entertainment, Inc. (NASDAQ:CZR) is one of the 15 best stocks to invest in for an 18 year old. Caesars Entertainment, Inc. (NASDAQ:CZR) retained its Buy alongside a $40 price target on June 10 per TD Cowen analysts, who noted the company’s strong cash flow and digital prospects.
According to TD Cowen’s report, analysts believe the company’s omni-channel gaming platform, which boasts a database of over 55 million members, offers significant growth prospects, adding that the stock is relatively undervalued.
TD Cowen analysts noted that Caesars’ traditional gaming activities continue to be the company’s main source of revenue. However, they pointed out that the Caesars Rewards loyalty program helped the company create additional revenue streams through hotel, food and beverage, and entertainment. They also highlighted the significance of Caesars Entertainment’s growth in its digital business and the possibility of improving the balance sheet by generating revenue off of digital assets.
Caesars Entertainment, Inc. (NASDAQ:CZR) is a gaming and hospitality company that runs gaming properties under the Caesars, Harrah’s, Horseshoe, and Eldorado brand names.
11. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holder: 69
Amgen Inc. (NASDAQ:AMGN) is one of the 15 best stocks to invest in for an 18 year old. Amgen Inc. (NASDAQ:AMGN) highlighted its strong first-quarter results and strategic plans in a presentation at the Goldman Sachs 46th Annual Global Healthcare Conference 2025 on June 10. Strong product performance and innovation drove the company’s reported 9% revenue gain and 24% non-GAAP EPS increase year-over-year.
The company is making significant strides in its operations, particularly with regard to its current pipeline. Notably, Meritide is currently conducting Phase III studies, and the results will be shared at the ADA convention. While TESPIRE is progressing in other indications and significant PDUFA deadlines are drawing up, the company’s Euplisna was introduced as an FDA-approved treatment for IgG4-related disease.
The company has announced this year that it plans to invest $1 billion in a drug substance plant in North Carolina and an additional $900 million in a completed drug product plant in Ohio as part of its ongoing efforts to develop and grow its network infrastructure.
Amgen Inc. (NASDAQ:AMGN) is a global biopharmaceutical company that focuses on human treatments for cardiovascular, hematology, inflammation, cancer, and bone health.
10. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holder: 69
Bristol-Myers Squibb Company (NYSE:BMY) is one of the 15 best stocks to invest in for an 18 year old. On June 10, Bristol-Myers Squibb Company (NYSE:BMY) stated that RayzeBio, a subsidiary, would offer Philochem AG up to $1.35 billion to acquire the global rights to develop and market OncoACP3, a treatment for clinical-stage prostate cancer.
In accordance with the agreement, Philochem will get $350 million up front and could get up to $1 billion in milestone payments for research, regulation, and commerce. Additionally, the company will get royalties on worldwide sales of OncoACP3’s therapeutic and diagnostic applications, which range from mid-single to low double-digit percentages.
The transaction is an example of Bristol-Myers Squibb’s planned foray into radiopharmaceutical treatment of prostate cancer. A new target in prostate cancer, OncoACP3 is a small chemical ligand that targets Acid Phosphatase 3. The substance is currently under evaluation in a Phase I trial; preliminary diagnostic data indicates that it selectively uptakes tumors while absorbing very little of healthy tissue. Expected to close in the third quarter of 2025, the transaction is still pending regulatory approvals and standard closing conditions.
A multinational biopharmaceutical corporation, Bristol-Myers Squibb Company (NYSE:BMY) is engaged in product discovery, research, licensing, manufacturing, marketing, and distribution.
9. PepsiCo Inc. (NASDAQ:PEP)
Number of Hedge Fund Holder: 71
PepsiCo, Inc. (NASDAQ:PEP) is one of the 15 best stocks to invest in for an 18 year old. On June 10, TD Cowen analysts reaffirmed their $135 price target and Hold rating for PepsiCo, Inc. (NASDAQ:PEP). The change was made in response to worries over Frito-Lay’s latest price pack architecture plan, which has apparently not been well received by customers.
As per the analysts’ assessment, single-serve sales have dropped by 5.9% so far this year, while they declined by 0.9% in 2024 as a result of the strategy. According to the TD Cowen, the new pack sizes’ higher price per ounce may have had a detrimental effect on consumer perceptions. New tariffs and macroeconomic uncertainty, including specific difficulties in its Frito-Lay North America sector, caused PepsiCo, Inc. (NASDAQ:PEP) to modify its full-year guidance.
This pattern is consistent with its overall revenue reduction of 0.38% over the past 12 months, even though its gross profit margins remained exceptional at 55.07%.
One of the most well-known names in the world, PepsiCo, Inc. (NASDAQ:PEP) is an American multinational company involved in the food, snack, and beverage sectors.
8. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holder: 79
RTX Corporation (NYSE:RTX) is one of the 15 best stocks to invest in for an 18 year old. On June 9, Collins Aerospace, a division of RTX Corporation (NYSE:RTX), announced that it was extending its capabilities for electrifying aircraft by establishing a new production line for electric thrust reverser actuation systems (elecTRAS) in Colomiers, France, alongside a new technical center of excellence in Wolverhampton, UK.
With complex design and testing capabilities, the Wolverhampton center focuses on manufacturing next-generation electric thrust reverser actuation systems for commercial aircraft. Further, the Colomiers facility will manage the final assembly of these electric systems, thus raising production capacity and efficiency.
By using elecTRAS instead of conventional hydraulic-powered thrust reverser actuation systems, Collins may build nacelle systems that are lighter by 15-20% and easier for customers to install and maintain. As a result, operational performance and fuel efficiency are enhanced. Collins’ most recent generation elecTRAS had accumulated almost 11 million flight hours, with over 600 Airbus A350XWB aircraft in operation and manufacture continuing into the decade to come.
Leading aerospace and defense firm RTX Corporation (NYSE:RTX) offers products and services to commercial, military, and governmental customers worldwide.
7. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holder: 93
Merck & Co., Inc. (NYSE:MRK) is one of the 15 best stocks to invest in for an 18 year old. On June 10, Cantor Fitzgerald reaffirmed its Neutral rating on Merck & Co., Inc. (NYSE:MRK) with a fixed price target of $85 per share. Carter Gould, the firm’s analyst, offered insight concerning Merck’s Gardasil vaccine, which has raised investor concerns because of possible modifications to suggested dosage schedules.
It was originally anticipated that the Advisory Committee on Immunization Practices (ACIP) would suggest a schedule of 1-2 doses of Gardasil; this recommendation could have an effect on the vaccine’s projected sales in the United States. Although there was evident motion in this approach, Gould pointed out that the anticipated risk to Merck’s 2025 sales may be exaggerated. He added that known clinician behaviors, usage trends, and Merck’s potential pricing plans could all help to offset any possible drops in sales.
Gould also emphasized the new ambiguities surrounding the ACIP’s position, implying that these could make it more likely that the committee will approve a 1-2 dose regimen at the next June meeting.
Merck & Co., Inc. (NYSE:MRK) is a well-known American multinational pharmaceutical firm. Internationally recognized as Merck Sharp & Dohme (MSD), the company is a global provider of prescription medications, vaccines, biologic therapies, and animal health products.
6. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holder: 97
Oracle Corporation (NYSE:ORCL) is one of the 15 best stocks to invest in for an 18 year old. With a price target of $135, JPMorgan maintained its Neutral rating on Oracle Corporation (NYSE:ORCL) on June 10. Oracle’s solid core AI infrastructure bookings were cited as a benefit for the company’s cloud infrastructure division.
Oracle’s current valuation, the firm noted, seems to account for expectations of a notable acceleration in revenue growth, possibly in the mid-high teens or around 20%. The firm’s analyst pointed out that although Oracle has the ability to support massive AI workloads, some valuation frameworks might not properly account for the $96 billion in debt that Oracle Corporation (NYSE:ORCL) has accumulated, which could skew comparisons with other tech titans.
On the plus side, the planned Stargate project is expected to help Oracle’s revenue, with industry talks suggesting that technology has been arriving in Texas. Oracle Corporation’s performance may be significantly impacted by this project, therefore the analyst will be watching for developments.
Oracle Corporation (NYSE:ORCL) is a leading IT solutions company that offers a variety of products, such as cloud infrastructure, software, and apps.
5. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holder: 99
Pfizer Inc. (NYSE:PFE) is one of the 15 best stocks to invest in for an 18 year old. On June 10, Cantor Fitzgerald reaffirmed its $24 price target on Pfizer Inc. (NYSE:PFE), maintaining its Neutral outlook. The CDC recently revoked its recommendations for healthy pregnant women and children to get the COVID-19 vaccination, among other changes to the regulatory environment that the company must contend with.
According to analyst Carter Gould, the use of Pfizer’s Comirnaty vaccine may be impacted by any extra restrictive language that the Advisory Committee on Immunization Practices (ACIP) decides to include. Gould’s comments draw attention to how vaccine recommendations are changing as the pandemic response changes.
Furthermore, it appears that government regulations surrounding vaccines are at a crossroads. Last month, President Trump issued an executive order ordering pharmaceutical companies to reduce the cost of their products to match what other nations pay. Albert Bourla, the CEO of Pfizer, stated on June 9 that the talks with the current administration regarding this were centered on vague ideas rather than “digging into the substance.”
Notably, since it was approved, the Comirnaty vaccine has significantly boosted the company’s financial performance. Pfizer Inc. (NYSE:PFE)’s future vaccination revenue streams may be impacted by any modifications to recommendations or usage guidelines.
Pfizer Inc. (NYSE:PFE) is a leading global pharmaceutical company that develops, produces, and sells biopharmaceutical medicines worldwide.
4. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holder: 111
Adobe Inc. (NASDAQ:ADBE) is one of the 15 best stocks to invest in for an 18 year old. On June 10, Tyler Radke, a Citi analyst, raised the price target for Adobe Inc. (NASDAQ:ADBE) from $430 to $465 while keeping the company’s shares at a Neutral rating. The change was made as analysts host conflicting expectations for Adobe’s second fiscal quarter results announcement, which is set for June 12.
Adobe Inc. (NASDAQ:ADBE), renowned for its Creative Cloud services, faces difficulty gaining traction as it implements price rises driven by AI aimed at its primary customer base of creative professionals. This strategy is considered a reaction to reduced revenue from non-professional customers and increased competition from freemium websites that offer basic photo and video editing capabilities.
Conversely, Citi noted encouraging signs in other facets of Adobe’s operations despite these worries. Strong website traffic and positive partner reviews of Adobe’s digital experience products indicate that the company continues to gain headway with enterprise clients.
Adobe Inc. (NASDAQ:ADBE) is a world leader in software creation, known for its cutting-edge digital media solutions. Its major products, including Photoshop and Acrobat are essential tools for creative sectors and organizations across the globe.
3. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holder: 119
Eli Lilly and Company (NYSE:LLY) is one of the 15 best stocks to invest in for an 18 year old. UBS kept its Buy rating and $1,050 price target for Eli Lilly and Company (NYSE:LLY) in place on June 10. Previously discussing retatrutide and orforglipron, the firm’s most recent social media channel check series now focuses on patient opinions about the impending CVS formulary change. With effect from July 1, CVS will now favor Wegovy over Zepbound.
In order to gather patient opinions about Eli Lilly’s drugs, UBS analysts have been looking through social media recently. Although the analysts acknowledge the possibility of respondent bias, they have gathered a selection of publicly available yet unverified statements. These remarks offer insight into patient experiences and readiness for CVS’s formulary change.
Eli Lilly and Company (NYSE:LLY) may be affected by the CVS formulary change considering it could change how its medication, Zepbound, is viewed when compared to Wegovy. That said, despite possible changes in the market, UBS analysts’ continued endorsement for LLY hints at a promising future for the pharmaceutical company.
Eli Lilly & Company (NYSE:LLY) is a major global pharmaceutical company that develops, manufactures, and distributes a wide range of drugs. Founded in 1876, it has grown to become one of the world’s largest pharmaceutical companies.
2. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holder: 129
JPMorgan Chase & Co. (NYSE:JPM) is one of the 15 best stocks to invest in for an 18 year old. Analysts at Wells Fargo raised their price target for JPMorgan Chase & Co. (NYSE:JPM) from $300 to $320 while maintaining their Overweight rating on the company’s shares on June 10.
With $4.4 trillion in assets at the end of the first quarter of 2025, JPMorgan Chase & Co. (NYSE:JPM) was dubbed the “Goliath of Goliaths” by Wells Fargo analysts, who also emphasized the company’s strong financial performance and significant market presence.
The analysts highlighted JPMorgan’s dominant position in a number of industries. With an 11% market share, a 9.5% payment share, and 9% industry fees in investment banking, the bank leads the wholesale market. JPMorgan Chase & Co. (NYSE:JPM) leads the consumer banking market as well, with 91 million customers across all sectors, an 11% share of retail deposits, and a 17% share of outstanding credit card loans.
Wells Fargo’s analysis also pointed to JPMorgan’s excess capital utilization as a key factor. JPMorgan Chase & Co. (NYSE:JPM) indicated at its investor day that it now has $57 billion in surplus capital and aims for a 17% medium-term return on tangible common equity (ROTCE).
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holder: 159
Apple Inc. (NASDAQ:AAPL) is one of the 15 best stocks to invest in for an 18 year old. With a $275 price target, TD Cowen maintained a Buy rating on Apple Inc. (NASDAQ:AAPL). Notably, the firm’s analysts emphasized the significance of developer access to Apple’s Foundation Models in order to integrate models and apps, which is expected to progress by 2026.
Apple Inc. (NASDAQ:AAPL) recently introduced new Apple Intelligence features at the Worldwide Developers Conference 2025. An improvement over last year’s “light trickle,” the update was characterized as a “steady stream” of AI-enhanced capabilities. TD Cowen analysts highlighted Apple’s increased integration of Apple Intelligence into iOS, even though the lack of chatbot technology and the delay in Siri updates may be seen as setbacks. Importantly, this integration’s multimodal model approach might let consumers choose their preferred LLM for use.
The analysts added that, other from perhaps more DRAM, significant specification improvements are unlikely to be part of the iPhone update in the second half of 2025. They expect that in the second half of 2026, Apple Inc. (NASDAQ:AAPL) will utilize 2nm chips, which could act as a catalyst for device updates and significantly boost AI performance.
Apple Inc. (NASDAQ:AAPL) is a global tech company that is known for its core offerings, the iPhone, Mac, and Apple Watch, as well as its expansive service portfolio, which includes iCloud and Apple Music.
While we acknowledge the potential of AAPL 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 AAPL and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
