In this article, we will list the 5 Best Cheap Stocks to Buy for Beginners. Please visit 10 Best Cheap Stocks to Buy for Beginners if you would like to see the extended list and the methodology behind it.
5. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 87
AbbVie Inc. (NYSE:ABBV) is one of the best cheap stocks to buy for beginners. AbbVie Inc. (NYSE:ABBV) announced on June 2 that the European Commission approved AQUIPTA® for the acute treatment of migraine in adults with or without aura, to be taken as needed. Management stated that the approval marks the second indication for AQUIPTA in the European Union, an oral calcitonin gene-related peptide receptor antagonist. It now holds approval as both an acute treatment option for migraine attacks in adults and as a once-daily preventive treatment option for adults with chronic or episodic migraine who experience four or more migraine days per month.
In another development, AbbVie Inc. (NYSE:ABBV) announced on May 29 authorization by the European Commission (EC) for an expanded label for VENCLYXTO® to include use in combination with acalabrutinib (with or without obinutuzumab), along with use in combination with ibrutinib to treat adult patients with previously untreated chronic lymphocytic leukemia (CLL). Management stated that the expanded label follows the EC’s inclusion of these combinations in the acalabrutinib and ibrutinib labels, with all-oral, fixed-duration combination regimens supporting the current standards of care.
AbbVie Inc. (NYSE:ABBV) is a research-based pharmaceutical company that develops and sells products to treat chronic diseases in oncology, gastroenterology, rheumatology, dermatology, virology, and various other serious health conditions.
4. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 98
Merck & Co., Inc. (NYSE:MRK) is one of the best cheap stocks to buy for beginners. Moderna, Inc. and Merck & Co., Inc. (NYSE:MRK) announced on June 1 detailed results from a planned five-year follow-up analysis of the Phase 2b randomized KEYNOTE-942/mRNA-4157-P201 study evaluating intismeran autogene in combination with KEYTRUDA® in patients with high-risk melanoma following complete resection. Intismeran autogene is an investigational mRNA-based individualized neoantigen therapy, while KEYTRUDA® is Merck’s anti-PD-1 therapy.
The company reported that Intismeran autogene in combination with KEYTRUDA exhibited an encouraging trend toward overall survival in an exploratory analysis compared to KEYTRUDA alone. It added that at “median 5-year (60.3 months) planned follow-up of the Phase 2b KEYNOTE-942/mRNA-4157-P201 study, intismeran autogene in combination with KEYTRUDA demonstrated a 49% reduction in the risk of recurrence or death and a 59% reduction in the risk of distant metastasis or death compared to KEYTRUDA alone”.
In a separate development, Merck & Co., Inc. (NYSE:MRK) announced on May 26 that its Board of Directors declared a quarterly dividend of $0.85 per share of the company’s common stock for fiscal Q3 2026, with payments set to be made on July 8, 2026, to shareholders of record at the close of business on June 15, 2026.
Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people. Its Pharmaceutical segment offers vaccines and human health pharmaceutical products, typically therapeutic and preventive agents. Its Animal Health segment develops, discovers, manufactures, and markets a range of vaccines and veterinary pharmaceutical products. The company’s medicine KEYTRUDA may treat certain cancers by working with the immune system.
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 101
Salesforce, Inc. (NYSE:CRM) is one of the best cheap stocks to buy for beginners. Salesforce, Inc. (NYSE:CRM) announced on June 3 the signing of a definitive agreement to acquire Contentful, which is a leading composable content platform that delivers personalized digital experiences at scale. Management stated that the acquisition would bolster the company’s Headless 360 with a native, enterprise-grade content layer connecting customer data with engaging content experiences across Salesforce, Inc.’s (NYSE:CRM) leading applications. It added that by leveraging Data 360, Agentforce, and Contentful’s composable APIs, global enterprises can be capable of seamlessly deliver personalized, AI-assembled experiences at scale across every channel.
In a separate development, Salesforce, Inc. (NYSE:CRM) received a rating update from BMO Capital on May 28. The firm lowered the price target on the stock to $215 from $225 and maintained an Outperform rating on the shares following the company’s fiscal Q1 results. The firm told investors in a research note that the results and guidance are not likely to be sufficient to convince either bears or bulls to switch sides, and that offer limited changes to FY27 top-line growth expectations.
Salesforce, Inc. (NYSE:CRM) designs and develops cloud-based enterprise software for customer relationship management. Its solutions encompass customer service and support, sales force automation, digital commerce, marketing automation, collaboration, community management, industry-specific solutions, and Salesforce platforms. It also offers training, guidance, support, and advisory services.
2. Sandisk Corporation (NASDAQ:SNDK)
Number of Hedge Fund Holders: 114
Sandisk Corporation (NASDAQ:SNDK) is one of the best cheap stocks to buy for beginners. Morgan Stanley raised the price target on Sandisk Corporation (NASDAQ:SNDK) to $1,750 from $1,100 on June 3 and maintained an Overweight rating on the shares. The firm told investors that there is “no quick fix to the memory shortage” that is going to drive what could be two to three more years, or longer, of tight supply conditions in memory. It also stated that although memory stocks were strong in 2025 and have continued to pace the market again in 2026. Morgan Stanley does not believe that “the run of strong performance is over”.
Sandisk Corporation (NASDAQ:SNDK) also received a rating update from Susquehanna on May 29, with the firm lifting the price target on the stock to $3,250 from $2,000 while maintaining a Positive rating on the shares. The firm stated that its checks suggest Q2 DRAM average selling prices are trending to be up 50%-60% quarter-over-quarter, ahead of expectations of up 50%. Meanwhile, NAND ASPs are trending unchanged at up 75-100% quarter-over-quarter.
Sandisk Corporation (NASDAQ:SNDK) is involved in the development, manufacture, and provision of storage devices and solutions based on NAND flash technology. The company’s products include solid-state drives, memory cards, and USB flash drives.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 154
Micron Technology, Inc. (NASDAQ:MU) is one of the best cheap stocks to buy for beginners. On June 3, Morgan Stanley lifted the price target on Micron Technology, Inc. (NASDAQ:MU) to $1,050 from $520, maintaining an Overweight rating on the shares and stating that there is “no quick fix to the memory shortage” that is going to drive what could be two to three more years, or longer, of tight supply conditions in memory. It also stated that although memory stocks were strong in 2025 and have continued to pace the market again in 2026, Morgan Stanley does not believe that “the run of strong performance is over”.
In another development, Susquehanna lifted the price target on Micron Technology, Inc. (NASDAQ:MU) to $1,750 from $600 on May 29 and maintained a Positive rating on the shares. Susquehanna lifted estimates for memory manufacturers under its coverage, driven by growing confidence in the sustainability of the margin profile and the continued strength in blended ASPs.
Micron Technology, Inc. (NASDAQ:MU) provides innovative memory and storage solutions. Its operations are divided into the following segments: Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU).
While we acknowledge the potential of MU 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 MU and that has 100x upside potential, check out our report about the cheapest AI stock.
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