Top 5 Stocks to Invest in For Beginner Investors

1. Square, Inc. (NYSE: SQ)

Number of Hedge Fund Holders: 89

Square is one of the top stocks to invest in for beginner investors. Even though the SQ stock has gained over 400% over the last 12 months, analysts believe the stock still has a huge room to run amid the company’s foray into new products and lucrative markets. KBW analyst Sanjay Sakhrani recently upgraded the stock to Outperform, citing the company’s presence and growth in the market and Square’s Seller and Cash App ecosystems. The analyst has a $250 price target for SQ. Square is set to benefit from the ecommerce boom across the world because the company now offers a complete ecosystem of services for ecommerce players, including web hosting, PoS software and accepting payments.

As of the end of the fourth quarter of 2020, Catherine Wood’s ARK Investment Management owns 7.08 million shares of Square Inc. worth $1.5 billion. SQ accounts for 4.1% of ARK’s total portfolio.

Baron FinTech Fund, in their Q4 2020 investor letter, mentioned Square, Inc. (NYSE: SQ). Here is what Baron FinTech Fund has to say about Square, Inc. in their Q4 2020 investor letter:

“Square, Inc. was the top contributor due to strong performance from its Cash App business and expectations for an improvement in its Seller business as consumers return to restaurants, coffee shops, and retail stores.

Square, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. The stock increased after the company reported strong financial results for the most recent quarter. Cash App’s gross profit increased 212%, driven by record new users and engagement while the Seller business was resilient despite headwinds from COVID-19.We continue to own the stock due to, in our view, Square’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”

You can also take a peek at Ricky Sandler’s Top 10 Stock Picks and 10 Best 5G Stocks to Buy Now.

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