In this article, we will list the 5 Best Cheap Stocks for Beginners to Invest In. Please visit 10 Best Cheap Stocks for Beginners to Invest In if you would like to see the extended list and the methodology behind it.
5. Morgan Stanley (NYSE:MS)
Morgan Stanley (NYSE:MS) is one of the best cheap stocks for beginners to invest in. BofA lifted the price target on Morgan Stanley (NYSE:MS) to $225 from $220 on April 16, reiterating a Buy rating on the shares. The firm stated that factors such as management messaging during the earnings call on business momentum, client sentiment, and its assessment of the private credit space proved “reassuring” and “should increase investor confidence in the resilience of the EPS growth and ROTCE outlooks”. The firm lifted its FY26, FY27, and FY28 EPS forecast by about 3% on a stronger revenue growth outlook.
The same day, Goldman Sachs also raised its price target on Morgan Stanley (NYSE:MS) to $205 from $186 while maintaining a Neutral rating on the shares. It told investors in a research note that the company once again delivered results well in excess of its targets, which include a 31% core wealth management pre-tax margin, a 27% core ROTCE, and a 64.6% core efficiency ratio.
Morgan Stanley (NYSE:MS) is a global financial services company that provides investment banking services and products to its customers and clients, including financial institutions, governments, corporations, and individuals. The company’s operations are divided into the following segments: Institutional Securities, Wealth Management, and Investment Management.
4. Pfizer Inc. (NYSE:PFE)
Pfizer Inc. (NYSE:PFE) is one of the best cheap stocks for beginners to invest in. CICC initiated coverage of Pfizer Inc. (NYSE:PFE) with an Outperform rating on April 16, setting a price target of $33. In a separate development, Pfizer Inc. (NYSE:PFE) announced on March 23 topline results from the Phase 3 VALOR “Vaccine Against Lyme for Outdoor Recreationists” clinical trial of its investigational 6-valent OspA-based Lyme disease vaccine candidate PF-07307405. The company stated that the vaccine candidate PF-07307405 (LB6V) exhibited over 70% efficacy in preventing Lyme disease in individuals aged five years and above, adding that the investigational vaccine candidate was well-tolerated with no safety concerns identified at the time of analysis. Pfizer Inc. (NYSE:PFE) further stated that the overall results bolster confidence in the vaccine candidate and that the company is planning submissions to regulatory authorities.
Annaliesa Anderson, Ph.D., Senior Vice President and Chief Vaccines Officer, Pfizer Inc. (NYSE:PFE), stated that no vaccine is currently available for Lyme disease, and the efficacy shown in the VALOR study of over 70% is “highly encouraging”, creating confidence in the vaccine’s potential to protect against the disease.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets, and is also involved in developing immunotherapies that help the immune system to recognise and attack cancer cells.
3. Citigroup Inc. (NYSE:C)
Citigroup Inc. (NYSE:C) is one of the best cheap stocks for beginners to invest in. RBC Capital lifted the price target on Citigroup Inc. (NYSE:C) to $139 from $121 on April 15, reiterating an Outperform rating on the shares. The rating update came after the company’s fiscal Q1 earnings beat, with the firm telling investors in a research note that it delivered a better-than-expected quarter, beating consensus estimates. It added that management remains confident in the company’s potential to attain its medium-term financial target – ROTCE of 10%-11% in 2026 vs. the 7.7% reported in 2025.
Citigroup Inc. (NYSE:C) also received a rating update from BofA the same day, with the firm adjusting the price target on the stock to $150 from $140 while maintaining a Buy rating on the shares. The firm told investors that the company’s fiscal Q1 results and management messaging only deepen its “conviction” in naming the bank its top idea among the large-cap banks and on BofA’s Top 10 Ideas for fiscal Q2. It further stated that it is “increasingly confident” that Citigroup Inc. (NYSE:C) will likely frame a ROTCE target of about 15% at the upcoming investor day on May 7, which should “serve as a catalyst for the next leg” of re-rating.
Citigroup Inc. (NYSE:C) provides financial products and services, with the company’s operations divided into the following segments: Services, Markets, Banking, Wealth, U.S. Personal Banking (USPB), and All Other.
2. Bank of America Corporation (NYSE:BAC)
Bank of America Corporation (NYSE:BAC) is one of the best cheap stocks for beginners to invest in. Oppenheimer lifted the price target on Bank of America Corporation (NYSE:BAC) to $61 from $58 on April 16, with the firm maintaining an Outperform rating on the shares. The rating update came after the company’s quarterly results, and the firm stated that, in line with its theme on the bank, the beat was driven by several small factors instead of one big thing. It added that pre-provision earnings were slightly better, charge-offs slightly lower, and bigger than expected share repurchases, driving the share count slightly lower.
In its fiscal Q1 2026 earnings, Bank of America Corporation (NYSE:BAC) reported a net income of $8.6 billion compared to $7.4 billion in the prior year period, up 17%. Diluted earnings per share rose 25% year-over-year to $1.11, while revenue for the quarter rose 7% year-over-year to $30.3 billion. The company also reported that provision for credit losses was $1.3 billion, down from $1.5 billion in fiscal Q1 2025 and relatively flat to fiscal Q4 2025.
Bank of America Corporation (NYSE:BAC) is a bank and financial holding company that operates in the Consumer Banking, Global Wealth and Investment Management (GWIM), Global Banking, and Global Markets segments.
1. JPMorgan Chase & Co. (NYSE:JPM)
JPMorgan Chase & Co. (NYSE:JPM) is one of the best cheap stocks for beginners to invest in. Truist lifted the price target on JPMorgan Chase & Co. (NYSE:JPM) to $332 from $323 on April 15, reiterating a Hold rating on the shares. The rating update came after the company released financial results for fiscal Q1 2026 on April 14, and told investors in a research note that Truist is positive on the bank’s higher revenues and lower provision expense, partially offset by higher expenses. The firm further stated that the stock’s premium valuation is warranted relative to its embedded growth opportunities, franchise strength, and track record on risk management.
In its fiscal Q1 2026 results, JPMorgan Chase & Co. (NYSE:JPM) reported net income of $16.5 billion, with revenue growing 19% and reflecting solid performance across its businesses. Markets revenue reached a record $11.6 billion, while IB fees increased 28%, attributed to stronger advisory and ECM activity. Management further reported that Payments continued to deliver strong results, while in CCB, revenue rose 7%. In AWM, revenue rose 11%, with flows remaining healthy with $54 billion of long-term AUM net inflows.
JPMorgan Chase & Co. (NYSE:JPM) is a financial holding company that provides financial and investment banking services. The firm’s operations are divided into the following segments: Consumer and Community Banking (CCB), Commercial and Investment Bank (CIB), Asset and Wealth Management (AWM), and Corporate.
While we acknowledge the potential of JPM 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 JPM and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
