5 Best Stocks To Invest In 2023 For Beginners

In this article, we will take a look at the 5 best beginner stocks to buy in 2023. If you want to explore similar stocks, you can go to 10 Best Stocks To Invest In 2023 For Beginners.

5. PepsiCo, Inc. (NYSE:PEP)

Revenue Growth (YoY): 8.70%

3-Year Revenue Growth: 8.76%

Number of Hedge Fund Holders: 70

PepsiCo, Inc. (NYSE:PEP) was held by 70 hedge funds at the close of the fourth quarter of 2022. These funds disclosed stakes worth $4.4 billion in the company. As of December 31, Fundsmith LLP is the top shareholder in the company and has disclosed a stake worth $1.2 billion.

As of April 21, PepsiCo, Inc. (NYSE:PEP) has returned 6.72% to investors over the past 12 months and is offering a forward dividend yield of 2.48%. The company grew its annual revenue by 8.70% year over year in 2022, and has a 3-year revenue CAGR of 8.76%. PepsiCo, Inc. (NYSE:PEP) is one of the best beginner stocks to buy now, according to hedge funds.

This April, JPMorgan analyst Andrea Teixeira raised her price target on PepsiCo, Inc. (NYSE:PEP) to $196 from $190 and maintained an Overweight rating on the shares.

Madison Investments made the following comment about PepsiCo, Inc. (NASDAQ:PEP) in its Q1 2023 investor letter:

“PepsiCo, Inc. (NASDAQ:PEP) announced that it will commit $3.3 million in funds toward water replenishment projects across North America. These projects aim to reduce absolute water use and replenish back into the local watershed more than 100% of the water used at company-owned and third-part sites in high water-risk areas.”

4. NIKE, Inc. (NYSE:NKE)

Revenue Growth (YoY): 8.13%

3-Year Revenue Growth: 7.04%

Number of Hedge Fund Holders: 71

On April 10, BMO Capital analyst Simeon Siegel maintained an Outperform rating and his $120 price target on NIKE, Inc. (NYSE:NKE).

On March 21, NIKE, Inc. (NYSE:NKE) announced earnings for the fiscal third quarter of 2023. The company reported an EPS of $0.79 and outperformed EPS estimates by $0.24. The company generated a revenue of $12.39 billion, up 13.97% year over year and ahead of Wall Street estimates by $908.80 million.

In fiscal 2022, NIKE, Inc. (NYSE:NKE) grew its revenue by 8.13% year over year. The company has a 3-year revenue CAGR of 7.04%. NIKE, Inc. (NYSE:NKE) is placed fourth on our list of the best beginner stocks to buy now.

NIKE, Inc. (NYSE:NKE) was a part of 71 hedge funds’ portfolios at the close of the fourth quarter of 2022. These funds held collective positions worth $4 billion in the company. As of December 31, Fundsmith LLP is the largest investor in the company and has a stake worth $787 million.

ClearBridge Investments made the following comment about NIKE, Inc. (NYSE:NKE) in its Q4 2022 investor letter:

“NIKE, Inc. (NYSE:NKE) has been pressured by an uneven global recovery that led to surplus inventory. We added to the position earlier in the year with the view that its inventory write-down should not derail the company’s long-term high-single-digit revenue growth or the margin expansion from its enhanced focus on the direct-to-consumer business. While near-term earnings estimates may have some risk, much of the multiple contraction is in the current value of Nike shares and sentiment has shifted, with the shares bouncing 40% higher during the quarter. Netflix is another earnings reset name that has taken decisive actions, developing an ad-supported subscription tier and cracking down on password sharing, that have helped its shares rerate strongly.”

3. Elevance Health, Inc. (NYSE:ELV)

Revenue Growth (YoY): 11.31%

3-Year Revenue Growth: 13.75%

Number of Hedge Fund Holders: 75

On April 19, Elevance Health, Inc. (NYSE:ELV) reported strong earnings for FQ1 2023. The company generated a revenue $41.90 billion, up 10.59% year over year and ahead of market consensus by $969.57 million. Elevance Health, Inc. (NYSE:ELV) reported an EPS of $9.46 and outperformed EPS estimates by $0.17. In fiscal 2022, the company’s annual revenue grew by 11.31% year over year. Elevance Health, Inc. (NYSE:ELV) is one of the best beginner stocks to invest in.

This April, Deutsche Bank raised its price target on Elevance Health, Inc. (NYSE:ELV) to $575 from $571 and reiterated a Buy rating on the shares.

At the end of the fourth quarter of 2022, 75 hedge funds were long Elevance Health, Inc. (NYSE:ELV) and disclosed stakes worth $6 billion in the company. As of December 31, Viking Global is the leading shareholder in the company and has a stake worth $960 million.

Sequoia Fund made the following comment about Elevance Health, Inc. (NYSE:ELV) in its Q4 2022 investor letter:

“Elevance Health, Inc. (NYSE:ELV)’s stock was Sequoia’s best performing stock this year, for all the same reasons that United’s stock performed well. For full-year 2022, Elevance’s revenues and EPS are expected to be up approximately 14% and 12%, respectively. Versus 2019, the company’s revenues and EPS are expected to have compounded at annual rates of 14% and 15%, respectively.

Elevance (renamed from Anthem in 2022) is, like United, primarily a managed care company. In terms of revenues and profits, it is big, but not quite as big as United. Further, it is less scaled and less diversified than United in non-insurance business lines. However, Elevance has its own strengths. It is the largest operator of for-profit Blue Cross Blue Shield plans in the country. Built up over the course of decades, these plans have unrivaled brand recognition as well as a network of provider relationships that is unique in terms of market coverage and negotiated rates.

Elevance has long been an advantaged business, but it has not always been particularly well run. In 2017, Gail Boudreaux, formerly a senior executive at United, took over the reins. She is experienced and results-oriented. We believe Boudreaux can help Elevance make more of the enviable position it has long enjoyed…” (Click here to read the full text)

2. UnitedHealth Group Inc. (NYSE:UNH)

Revenue Growth (YoY): 12.90%

3-Year Revenue Growth: 10.91%

Number of Hedge Fund Holders: 110

UnitedHealth Group Inc. (NYSE:UNH) is one of the best beginner stocks to buy now according to hedge funds. In fiscal 2022, the company grew its revenue by 12.90% year over year. Moreover, the company has a 3-year revenue CAGR of 10.91%. As of April 21, the stock is offering a forward dividend yield of 1.36%.

On April 20, Cantor Fitzgerald analyst Sarah James started coverage of UnitedHealth Group, Inc. (NYSE:UNH) with an Overweight rating and a $591 price target.

UnitedHealth Group Inc. (NYSE:UNH) was spotted on 110 hedge funds’ portfolios at the end of Q4 2022 that held collective stakes worth $11.4 billion in the company. Of those, GQG Partners was the dominant investor and disclosed a position worth $2 billion.

FMI made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2023 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH) is the largest, best-managed, and most-diversified managed care organization in the U.S. and is among the largest providers of health services and technology through its fast-growing Optum businesses. In managed care (health insurance), UNH is the number one national provider in the rapidly expanding Medicare Advantage market, in addition to the number one and number two positions in most other sub segments. Today, scale is more important than ever in delivering top benefits at competitive prices. Scaled buying power (and network building) ensures the most visibility into medical costs at a given site-of-care and scaled investment gives UNH the most enhanced capabilities (tools and technology, typically from Optum) that nudge participants towards lower cost sites-of-care. We view the forward valuation (17 times 2024E EPS) and long-term growth algorithm as attractive.”

1. Microsoft Corporation (NASDAQ:MSFT) 

Revenue Growth (YoY): 10.38%

3-Year Revenue Growth: 14.98%

Number of Hedge Fund Holders: 259

This April, KeyBanc analyst Michael Turits raised his price target on Microsoft Corporation (NASDAQ:MSFT) to $335 from $316 and reiterated an Overweight rating on the shares.

Shares of Microsoft Corporation (NASDAQ:MSFT) have gone up by 19.28% since the beginning of 2023, as of April 21. The company grew its revenue by 10.38% year over year in fiscal 2022, and has a 3-year revenue CAGR of 14.98%. Microsoft Corporation (NASDAQ:MSFT) is the best beginner stock to buy in 2023, according to hedge funds.

At the close of the fourth quarter of 2022, 259 hedge funds were eager on Microsoft Corporation (NASDAQ:MSFT) and held stakes worth $58.6 billion in the company. Of those, Bill & Melinda Gates Foundation Trust was the leading stockholder in the company and held a position worth $9.4 billion.

Diamond Hill Capital made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter:

“Other bottom contributors to return included railroad operator Union Pacific, software and IT services provider Microsoft Corporation (NASDAQ:MSFT), and banking and financial services company Truist Financial. Union Pacific and Microsoft, though among our bottom contributors, still contributed positively to performance in Q4 as their share prices rose 7% and 3%, respectively. Truist’s stock ended flat in Q4.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a look at 10 Best Electric Utility Stocks To Buy Now and 10 Best Fertilizer Stocks to Buy.