15 Best Stocks To Buy For Beginners
Are You Looking For The Best Stocks To Buy Right Now? Here’s A List Of 15 Of The Best Stocks To Buy For Beginners.
Investing in the stock market today could be a great way to grow your wealth. But where do we start? To begin with, you might be better off investing in blue-chips stocks that are less volatile. What about penny stocks, you might ask. Well, a small movement in penny stocks could translate into big gains, but those gains could also turn into big losses overnight if we are not careful. So, unless you are willing to stomach such big swings, you might be better off sticking with well-known companies for a start.
This year saw many new participants in the stock market, as many started investing for the first time during the pandemic. If you are one of them, congratulations. While some people prefer trading stocks over short periods of time, you might want to consider long-term investing. The stock market on average produces around a 10% annual return. While this may seem easy, not many people actually achieve such returns. And one of the main reasons is because these investors don’t stay invested long enough.
Admittedly, choosing the right stocks to invest in can be a time-consuming endeavor. This is true even for some of the most seasoned investors. If you are new to the stock market, buying companies that you are familiar with maybe a good place to start. It would be beneficial to have an idea of how the companies make money. Besides, picking stocks with strong balance sheets and stellar growth prospects could increase your chances of success.
Of course, the reality is that unless you are a gifted stock picker, some of your stocks will lose money. That’s why it is important to diversify your investments, so that losses in a stock may be outweighed by gains in other stocks. Last but not least, we certainly hope you will find your investing journey enriching indeed.
Best Stocks To Buy For Beginners Right Now
- Alibaba (BABA Stock Report)
- Alphabet (GOOGL Stock Report)
- Amazon (AMZN Stock Report)
- Apple (AAPL Stock Report)
- Disney (DIS Stock Report)
- Facebook (FB Stock Report)
- General Motors (GM Stock Report)
- Microsoft (MSFT Stock Report)
- Netflix (NFLX Stock Report)
- Nio (NIO Stock Report)
- Salesforce.com (CRM Stock Report)
- Snowflake (SNOW Stock Report)
- Shopify (SHOP Stock Report)
- Tesla (TSLA Stock Report)
- Unity (U Stock Report)
Alibaba Group Holdings is China’s largest e-commerce company. Many people know the company as the Amazon of China. Alibaba is the largest e-commerce company in the Asia Pacific and it is a leader in the cloud industry in the region. In addition, the company invested heavily in artificial intelligence (AI) and made good use of the data generated by the company and its subsidiaries, notably Taobao and Tmall marketplaces. This gave it a competitive advantage on how to optimize its offerings. In 2020, it was announced that Alibaba has the 6th highest brand valuation in the world. Alibaba is the second Asian company to surpass a valuation of over $500 billion USD. What’s not to like about BABA stock when it is benefitting from all the growth drivers in the form of AI, e-commerce, and cloud computing?
Alphabet is the parent company for the tech giant Google. It’s one of the world’s biggest and most profitable companies. Google generates 99% of the company’s revenue, of which more than 85% is from online advertising. GOOGL stock is great for beginner investors because most people around the world use some form of Google product in there every day in our life. Google is the most visited website with over 62.19 Billion visitors in 2019. The tech giant also holds a 92.18% market share of the search engine market. Every day billions of users rely on Google for their daily searches. The company offers a variety of products and services such as Google News, Google Shopping, Google Drive, and much more. Do you think Google is a good stock to buy for beginners?
The largest e-commerce company in the world, Amazon Inc. has been the darling of Wall Street for the past two decades. The company is an industry leader in the e-commerce segment and the cloud industry, while at the same time has significant market shares in other emerging trends such as video streaming. Amazon’s business fundamentals remain rock-solid despite a rather choppy trading in the stock in recent weeks. From its latest quarterly report, the company surprised investors by posting big gains. If you are looking for a stock to grow your portfolio over the long term, I wouldn’t want to miss owning a small piece of this company. The only downside in AMZN stock is that its price may be a bit too steep for some. Fortunately, many platforms now allow purchases of fractional shares.
Many investors want a bite of Apple Inc. It is no surprise, as the tech giant has been bringing big rewards to its shareholders. The company was the first trillion-dollar company in the world. And the company broke a new record again this year after becoming the first company to pass the 2 trillion dollar mark. It’s easy to forget that the company started as a computer company, making Macs. Today, we know it as the premier smartphone manufacturer. But the company is not resting on its laurels. It is leveraging its huge active user base to grow its wearables and services business. Apple’s ability to innovate and execute during these challenging times proves that the company has the ability to weather all storms. And that could make a compelling case for beginners.
An entertainment powerhouse, Walt Disney Inc. has been the best entertainment stocks to watch in the stock market with a solid history. From theme parks, brands, and movie theaters, Disney is clearly not a one-trick pony. Disney is restructuring to prioritize its streaming business, as it becomes the most important facet of the company’s media business during the COVID-19 pandemic. Within the realm of streaming services, Disney+ seems to be posing the greatest threats to the major players in the streaming world. Disney+ may be a relatively new service, but it has already racked up over 60.5 million paying subscribers globally. When the pandemic is over, Disney’s key revenue generators can fire on all cylinders again. Could you expect DIS stock to have a monstrous rally when that happens?
As the world’s largest social media company, Facebook is one top tech stocks to watch for huge potential gains. With more than 2.7 billion active users, there is no shortage of viewers of digital ads on its platform. 3 out of the 6 most popular social media platforms belong to Facebook. They are WhatsApp, Instagram, and Facebook itself. Digital advertising is Facebook’s key revenue driver, and according to eMarketer, digital ad sales could exceed $513 billion by 2023. Furthermore, the company is not shy about its e-commerce ambition. It plans to bring shopping features to WhatsApp, allowing users to buy items directly from the chat app. The in-app shopping functionality is especially attractive in certain emerging markets, where WhatsApp has a strong user base. With these in mind, could FB stock be a great stock for those who are new to investing?
General Motors (NYSE:GM)
General Motors is one of the few traditional automakers showing tangible progress in transitioning towards electric vehicles, which could potentially replace gasoline vehicles within decades. GM has an impressive lineup of EVs. Apart from its highly anticipated fully electric Hummer pickup, the company’s Chevrolet Bolt and Chevrolet Volt are among the best selling EVs in the US. Both of the models are much more affordable compared to Tesla’s models. Meanwhile, the truck is expected to go into production late next year. GM’s diversified range of options would certainly be welcome news for customers. With the industry stalwart setting its sights on the future, is GM stock the best stock for beginners who want exposure to EV stocks but at a cheaper valuation?
Once the most valuable company in the world, Microsoft is still one of the top tech stocks to watch in the stock market today. The company that brought us the Office productivity suite is far from obsolete and continues to remain relevant in markets around the world. With its Office productivity suite, leading Xbox gaming console, and popular Surface devices, there are various ways for the company to make money. To top it all off, its Azure cloud infrastructure platform currently serves as the foundation upon which many companies’ cloud operations are built upon. Azure has a huge opportunity for growth ahead, which makes it a good candidate as a stock with a solid runway ahead.
Streaming stocks have been favorites on Wall Street this year. If you are looking for the best streaming stock to buy in an increasingly competitive space, Netflix is often the first to come to mind, with its quality original content. The better the quality of the original content on a platform, the more consumers you would expect to subscribe to it. The demand for home entertainment is surging, and Netflix has been leading the streaming market because it has robust data and resource advantages. The robust data allows the company to create better content that will appeal to a broad audience. To top it all off, the company’s positive free cash flows and growth in the global markets could lead to massive opportunities ahead. After all, if you are a Netflix user, don’t you want to own its stock as well?
Nio Inc (NYSE:NIO)
The electric vehicles industry is one megatrend to watch in the coming decade. As one of this year’s best performing electric vehicle stocks, Nio’s red-hot rally has captured the attention of many investors. The Chinese EV player is currently the 6th most valuable automaker by market capitalization after its recent meteoric rise. Analysts love NIO stock for many reasons. These include strong delivery numbers and the positive operating margin attained by the company for the first time this year. It also sets itself apart with swappable batteries and a network of battery swap stations in China. JP Morgan analyst, Rebecca Wen believes Nio will be a “long-term winner” in the market for upscale electric vehicles in China. She sees Nio attaining about 30% share of the segment by 2025. Could this be the EV stock to buy if you missed out on Tesla’s rally?
Cloud-based software company Salesforce.com has been the best cloud stock to watch since its inception. You could say that they made cloud mainstream. The cloud services provider reported over $5 billion in its year 2020 third quarterly revenue for the first time ever. Its billing growth accelerated. Also, their adjusted operating margin hit an all-time high. If that is not enough for investors, the company also raised guidance for the year. As Salesforce’s services automate business processes, they reduce a company’s reliance on human employees. Going forward, this is a secular trend that seems unstoppable. Demand for these services will continue to climb as companies cut expenses. And Salesforce is at the top of the customer relationship management market. Would you say that it is a top cloud stock to buy for beginners?
Snowflake is a cloud-native data warehouse provider. The company offers database solutions for storing data and running queries on those data. Unlike the competition, users do not have to pay upfront, and services can be scaled up or down in a flexible manner. This flexibility extends to its pricing as well. The firm boasts 3,100 customers, 56 of which were each responsible for generating around $1 million in revenues within a 12-month period. Snowflake is unique because it was the first company to optimize its data warehouse for fast cloud computing. This allows easy interoperability among the major cloud companies, notably Amazon, Microsoft, and Alphabet. With Snowflake’s impressive growth track record and interest from Warren Buffett, would SNOW stock be suitable for beginner investors?
Shopify started gaining investors’ attention when it became the most valuable company in the Canadian stock market. The e-commerce company is a proprietary platform for online stores and retail point-of-sale systems. As brick-and-mortar stores took a big hit due to coronavirus, merchants rushed to Shopify to set up e-commerce services. This is undeniably the driving force for the company’s growth in its subscription revenue and gross merchandise volume. Currently, the company helps more than 1 million merchants across 175 countries to sell, market, and manage their products. In return, it earns subscription fees. As the company enters into partnerships with the likes of Facebook, Adobe and Walmart, could SHOP stock provide good returns over the long term?
Tesla (NASDAQ: TSLA)
Tesla is the company that brought EVs mainstream. Of course, the company doesn’t just make electric cars. It is also known for its supercharger stations and partial self-driving features. Besides, the company’s solar roof and home battery systems have gotten a lot of attention as well. The rally in TSLA stocks earlier this year and the subsequent stock split had made numerous headlines. With a market capitalization of around $400 billion, Tesla is the world’s largest automaker by value. Many traditional automakers have taken their cue from Tesla and begun to manufacture their own electric and eco-friendly automobiles, but Tesla continues to be the dominant name in the U.S. market. As the company continues to report strong growth in its deliveries, it wouldn’t be surprising if beginner investors want a piece of the largest EV stock.
Unity (NYSE: U)
Whoever said you can’t make money playing video games clearly haven’t come across Unity. Last year, more than half of the top 1000 games in Apple’s App Store and Google’s Play Store were built using Unity’s software platform. For instance, blockbuster games like “Pokémon GO” and “Iron Man VR” rely on the company’s software. The company’s customers range from small gaming publishers to large gaming giants like Electronic Arts and Tencent. The question is, do you believe the gaming industry will continue to grow shareholders’ wealth? If you like gaming and investing, would you consider Unity stock as you begin your investing journey?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.