In this article, we will take a look at the 8 Cheap Beginner Stocks to Buy Right Now.
Talk of a slowing economy has once again gained popularity within economic circles. According to a CNBC research, the word “recession” and its variants have been used on 150 S&P 500-listed earnings calls so far in 2025, roughly twice as many as during the same time period last year. The University of Michigan’s widely monitored consumer sentiment index has fallen to almost its lowest points ever as the announcements of tariffs have unsettled regular Americans.
Companies have also expressed concern that tariffs would negatively impact their bottom lines and force them to raise prices in order to cover increased costs. Some further claimed that customers had tightened their financial belts due to growing concerns of a recession brought on by the charges. Furthermore, after initially announcing his proposal for sharp and broad tariffs on numerous nations and territories, President Trump threw U.S. financial markets into an uproar in April, which market investors feared would reduce consumer spending. Soon after, he put a number of those duties on hold, which allowed the market to recover a large portion of its losses. During this reprieve, which ends early next month, the White House continues negotiating agreements with countries.
Following this, the market appears to be doing better, according to a New York Federal Reserve survey that was made public on June 9. The results indicated that following Trump’s retraction of some of his more aggressive trade policies, the average consumer is becoming less worried about inflation.
With this in mind, let’s take a look at the 8 cheap beginner stocks to buy right now.
Our Methodology
We sifted through stock screeners and media reports to compile our list of cheap stocks that are trading at a forward price-to-earnings ratio of less than 15 as of June 9. This indicates that the equity is undervalued when compared to its estimated future earnings. These stocks are ranked according to hedge fund sentiment, as of Q1 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).
8. Quaker Chemical Corporation (NYSE:KWR)
Forward Price-to-Earnings Ratio: 13.77
Number of Hedge Fund Holders: 25
Quaker Chemical Corporation (NYSE:KWR) is one of the 8 cheap beginner stocks to buy right now. On June 9, Quaker Chemical Corporation (NYSE:KWR) was upgraded from Hold to Buy by Jefferies analysts. In keeping with its optimistic assessment of the company’s performance, the firm also increased its price target from $115 to $146.
Despite challenges in the end markets, Jefferies analysts emphasized Quaker Chemical’s strong margins and return on capital employed (ROCE), which are still higher than 2019 levels. Over the course of four years, they observed a notable decline in the company’s EV/EBITDA, which has caused share prices to drop to levels comparable to those at which earnings per share were less than $5.
According to the analysts, Quaker Chemical Corporation (NYSE:KWR) is a “good quality-at-a-reasonable-price candidate,” with a free cash flow yield of 7%. By highlighting the company’s competitive edge and cyclical leverage, they predict that earnings will likely grow in 2026.
Jefferies also believes that Quaker Chemical’s shares may rerate relative to its peers, which may mean that the stock could reach $245 in 2027. In the best-case scenario, analysts predict that KWR could triple by 2030.
Quaker Chemical Corporation (NYSE:KWR) is a global provider of industrial products for heavy manufacturing sectors. The company offers a wide range of products, with a focus on rolling lubricants, hydraulic fluids, forming and forging fluids, corrosion inhibitors, and metal removal fluids.
