The Top 3 Stocks for Beginners With Little Money in March 2024
Amid an economy that’s defying the odds with its robust growth, now is an opportune time for beginners to dive into the stock market. Despite the jitters over the Feds hawkish monetary policy, the United States economy continues to exceed expectations. Moreover, the International Monetary Fund’s forecast of a further 2.1% expansion in 2024 indicates an even more promising future. Hence, this exceptional growth streak fuels optimism for what seemed like an impossible, making it the right time for strategic investments in the stock market. This led us to seek out the top stocks for beginners.
Nevertheless, for those just dipping their toes into the investment waters, prioritizing high-quality stocks is imperative. Hence, our curated selection embodies a mix of growth potential, financial stability, and sector diversity. These stocks for beginners are gateways to long-term growth, making them ideal for beginners eager to navigate the investment seas confidently.
Pfizer (PFE)
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Pfizer (NYSE:PFE) is a true titan in the pharmaceutical realm, making it no-brainer especially at current prices. Its stock has dipped substantially from the highs achieved during the pandemic years, but its roaring back with its impressive pipeline of drugs. The acquisition of nine new molecular entities in 2023 alone is a testament to that notion, signaling a bright future.
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Moreover, Pfizer’s acquisition of Seagen marks a significant leap in oncology research, doubling its resources and reinforcing its leadership in cancer treatment innovation. Additionally, its partnership with UT Southwestern Medical Center to advance RNA Delivery Technologies adds further to its bull-case.
Financially, Pfizer is an attractive option for investors, trading at a forward non-GAAP price-to-earnings (P/E) ratio of 11.98%, well below the sector’s median. With a forward yield of 6.2% that eclipses the healthcare sector’s average and a consistent payout history more than 14 years, Pfizer distinguishes itself as a prime investment choice. If you are looking for stocks for beginners, start here.
Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ)
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The Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) emerges as a cost-effective option for new investors. With $2.69 billion in assets spread across 46 holdings, including major players like Nvidia (NASDAQ:NVDA) and Intuitive Surgical (NASDAQ:ISRG), BOTZ strategically captures the essence of the dynamic robotics and AI markets.
Moreover, BOTZ has demonstrated impressive performance over the past year, with shares surging 34.7%. Additionally, with an expense ratio of 0.68%, BOTZ presents an economical avenue for investors to gain broad exposure to this dynamic field. Over the past five years, BOTZ stock has gained more than 61%, and is up a healthy 12% year-to-date (YTD). Also, it posted an impressive 32% gain last year, outperforming the S&P 500.
This may turn out to be a bit of a Cinderella story, but mark our words, this is going to be one of the top stocks for beginners.
Alphabet (GOOG,GOOGL)
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Alphabet Inc. (NASDAQ:GOOG, NASDAQ:GOOGL) remains a true powerhouse in the tech sphere, delivering spectacular returns for its investor base over the years. It has been a tremendous money-spinner delivering more than 133% return over the past five years, eclipsing the S&P 500’s return.
It wrapped up another solid quarter, marked by comfortable beats across both lines. Alphabet reported GAAP EPS of $1.64, exceeding expectations, and revenue of $86.31 billion, up 13.5% YOY. This financial strength led TipRanks to assign Alphabet a ‘strong buy’ rating, anticipating an enticing 23.78% upside potential.
Gemini, its state-of-the-art AI model, marks a powerful leap forward, rivaling established players in OpenAI’s ChatGPT. With its 2024 release, Gemini showcases superior performance across critical benchmarks, signaling a new era in tech innovation. Alphabet’s push into AI, exemplified by investments in projects such as Gemini, solidifies its leadership in the tech sphere, promising exciting developments for users and a lucrative avenue for investors.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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