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

Getting started in the stock market is not easy, especially considering the volatility we experienced in August. But recent turmoil does not mean investors should be deterred. On the contrary, I see many good opportunities in FTSE 100.

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

It's a drink

First up Diageo (LSE: DGE). This company is an alcoholic beverage giant. It carries products like Guinness, Captain Morganagain Johnny Walker.

The stock has recorded weak performance over the past five years. Its share price fell 28.3% during that period. Over the past 12 months, it has lost 27.7% of its value. It decreased by 13.9% in 2024 only.

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 IP/E is 17.9. The FTSE 100 average is 12, so that may look expensive. But since Diageo's historical average is 22.4, it looks cheap by its standards.

The reason why Diageo has not done so well recently is because of the decline in sales in the Latin American and Caribbean region. In a recent update to investors, the business reported a 21% year-over-year decline.

That includes the biggest threat Diageo faces, which is the cost of living problem that affects people's spending on alcohol. Consumers seem to switch to cheaper alternatives or stop altogether.

But for long-term investors, Diageo could be a great opportunity. With the great products they have, I expect them to be successful over the years and decades to come. Diageo wants to increase its market share to 6% by 2030, from 4.7% today.

A pharmaceutical giant

The following is GSK (LSE: GSK), a pharmaceutical and biotechnology company.

Over the past five years, the stock has lost 7.2% of its value. However, it has been gaining momentum recently. Last year, it increased by 14.2%. By 2024, it has increased by 5.8%.

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

In addition, the stock looks good value. It trades at a P/E of 15.9. Again, that's above the average of the FTSE 100. However, it looks cheap compared to other companies in its industry. For example, a competitor AstraZeneca trades at a P/E of 39.1.

Another risk I see with GSK is the ongoing legal issue associated with it Zantac medicine. Recently, a judge ruled in favor of 72,000 cases to continue to be connected Zantac causing cancer. These types of legal issues are always a threat when investing in pharma stocks.

But at its current valuation, and its defensive nature, I think GSK could be a stock worth considering. It's on my watch list.