New to the stock market? Here are 2 stocks for beginners to consider buying

It’s been a turbulent month for global stock markets. But that shouldn’t stop new investors from considering these FTSE 100 stocks.

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Starting out in the stock market isn’t easy, especially given the volatility we’ve had in August. But recent turmoil doesn’t mean investors should be deterred. Instead, I see plenty of good opportunities in the FTSE 100.

With that in mind, here are two stocks for beginners to consider taking a closer look at.  

Beverage behemoth

First up’s Diageo (LSE: DGE). The company’s an alcoholic beverage giant. It owns brands such as Guinness, Captain Morgan, and Johnnie Walker.

Should you invest £1,000 in Diageo right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo made the list?

See the 6 stocks

The stock’s recorded a weak performance in the last five years. Its share price is down 28.3% during that time. In the last 12 months, it has lost 27.7% of its value. It’s down 13.9% in 2024 alone.

Created with Highcharts 11.4.3Diageo Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

But with its share price taking a beating, I think the stock now looks cheap and good value for money. One key way to measure this is by looking at its price-to-earnings (P/E) ratio.

Diageo’s P/E is 17.9. The FTSE 100 average is 12, so that may look expensive. But with Diageo’s historical average being 22.4, it looks cheap by its own standards.

The reason Diageo’s been such a poor performer recently is because of a decline in sales in the Latin American and Caribbean region. In its latest update to investors, the business revealed they had fallen 21% year on year.

That feeds more widely into the threat Diageo faces, which is the cost-of-living crisis impacting the amount people are spending on alcohol. Consumers seem to be either switching to cheaper alternatives or stopping altogether.

But for investors who are buying for the long term, Diageo could be a good opportunity. With the premium brands it owns, I expect it to excel over the years and decades ahead. Diageo wants to increase its market share to 6% by 2030, up from 4.7% today.

Pharmaceutical giant

Next up is GSK (LSE: GSK), the pharmaceutical and biotechnology company.

In the last five years, the stock’s lost 7.2% of its value. However, it’s been gaining momentum more recently. In the last year, it’s up 14.2%. In 2024, it’s risen 5.8%.

Created with Highcharts 11.4.3GSK PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

I think it could be a stock to consider buying today for a few reasons. Firstly, it provides products such as vaccines and medicines. Where some industries sell goods that see demand come and go in cycles, given the essential nature of what GSK sells, it tends to see more steady demand. It delivers over 1.5m doses of its vaccines every single day.

On top of that, the stock looks good value. It trades on a P/E of 15.9. Again, that’s higher than the FTSE 100 average. However, it looks cheap compared to other businesses in its industry. For example, rival AstraZeneca trades on a P/E of 39.1.

One risk I see with GSK is the ongoing legal trouble it’s having related to its Zantac drug. A judge recently ruled in favour of 72,000 cases to go forward linking Zantac to causing cancer. These sorts of legal complications are always a threat when investing in pharma stocks.

But at its current valuation, and with its defensive nature, I think GSK could be a stock to consider buying. It’s on my watchlist.

But what does the head of The Motley Fool’s investing team think?

Should you invest £1,000 in Diageo right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo made the list?

See the 6 stocks

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended AstraZeneca Plc, Diageo Plc, and GSK. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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