Buying a stock is deceptively easy, but purchasing the right stock at the right time without a proven strategy is incredibly hard. So, what are the best Robinhood stocks to buy now or put on a watchlist? At the moment, Meta Platforms (META), Tesla (TSLA) and Microsoft (MSFT) are standout performers, at least relatively.
There are thousands of stocks trading on the NYSE and Nasdaq. But to generate big gains you have to find the very best. The best Robinhood stocks for investors will be those that offer a mix of earnings and stock market performance.
The CAN SLIM system offers clear guidelines on what you should be looking for. Invest in stocks with recent quarterly and annual earnings growth of at least 25%. Look for companies that have new, game-changing products and services. Also consider not-yet-profitable companies, often recent IPOs, that are generating tremendous revenue growth.
A key part of the CAN SLIM formula is the M, which stands for market. Most stocks, even the very best, follow the market direction. Invest when the stock market is in a confirmed uptrend and move to cash when the stock market goes into a correction.
A stock market rally that kicked off 2022 soon fell on its face. The market overall has been choppy since then, with bear market rallies often being undercut by painful drawdowns. While the Nasdaq looks healthy, the S&P 500 has fallen under the 50-day moving average following challenging broader trading sparked by negative action among bank stocks.
Now is a time to prepare for the next stock market uptrend by creating a robust watchlist. Focus on fundamentally strong stocks coming out of sound chart patterns, such as those in the IBD 50. These names will tend to have rising relative strength lines. The stocks below are good candidates.
Now let's look at Meta stock, Tesla stock and Microsoft stock in more detail. An important consideration is that these stocks are solid from a fundamentals perspective, while institutional ownership is also strong. They are also part of the Robinhood Top 100 Stocks, the platform's most popular stocks among traders.
Lackluster earnings are reflected in an EPS Rating of 48 out of 99. Despite this, growing bullish sentiment is reflected in the fact it is in the top 4% of stocks in terms of price performance over the past 12 months.
Tesla stock is also one of the best Robinhood stocks to buy now or put on a watchlist. It is still forging a bottoming base, below the 200-day line. But that key level is now below the potential 217.75 buy point.
It also shares the 100 most popular stocks on its platform, giving investors unique insight into what other Robinhood investors are buying. From this list, here are three Robinhood stocks that are great buys right now.
While the buzz around Robinhood might have waned since the trading boom during the pandemic, the platform is still popular with millennials, and that makes it a good source for investing ideas. Luckily, it lists the 100 most popular stocks on its site, providing insight into what its investors are buying.
You might be surprised to find Realty Income (NYSE: O) in Robinhood's Top 100. The real estate investment trust (REIT) doesn't fit the profile of the growth and tech stocks that are most common on the list, but its placement shows how popular dividend stocks have become in the current bear market.
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Robinhood Markets Inc.'s (HOOD) trading app generated tremendous buzz on Wall Street in 2021. Some of its users fueled the "meme" stock trading phenomenon that triggered several massive short squeezes and even drove Robinhood to implement controversial temporary trading restrictions. After going public in September, Robinhood reported 22.4 million net cumulative funded accounts in its first public earnings report, up 97% from a year ago. The median age of Robinhood users is just 31, according to the company. The relatively inexperienced trader base had some huge hits and misses in 2021. As 2022 kicks off, here are the eight most popular Robinhood stocks today.
Electric vehicle startups got a lot of attention in 2021, but legacy Detroit automaker Ford's stock left many of its new competitors in the dust. Ford finished the year up more than 130%, generating huge returns for Robinhood investors and making it one of the 10 best performers of 2021 among S&P 500 stocks. Ford plans to invest $30 billion in vehicle electrification by 2025. Robinhood investors likely have high hopes for its Mustang Mach-E EV, F-150 Lightning EV and other electric models, and Ford trades at a much more attractive valuation than leading EV stocks.
Trading penny stocks is a high-risk, high-reward proposition that involves buying an equity stake in small companies whose shares trade for less than $5. Not all brokerages offer access to the so-called pink sheets, but investors can trade penny stocks on Robinhood, although the selection is limited.
Investors can buy penny stocks on Robinhood, but the selection is limited only to those that are listed on U.S. exchanges alongside giants like Coca-Cola and Amazon, and some off-exchange stocks that trade over the counter as American Depository Receipts.
The lure of penny stocks is that some companies, like Monster Beverage, start as penny stocks but go on to become giant corporations that make their earliest investors very rich. If you pick the right penny stock, you could buy it in quantity when it costs a few bucks or even a few cents, and then ride it to Wall Street greatness.
Shares of GameStop ballooned nearly 200% this week and nearly 930% this year thanks to emboldened retail investors in Reddit chat rooms trying to stick it to Wall Street pros. The rookies are piling into names heavily shorted by hedge funds, squeezing the stocks higher as the institutions rushed to cover their losses. Shares of AMC Entertainment are up nearly 150% this week.
But, as EV sales increase, that should change. Ford has watched as EV stocks have benefited from very high valuations. That has proven to the firm it can benefit from a more heavily EV-dominated lineup.
In 2020, Robinhood traders bought and sold options contracts at 88 times the rate of traders who use Charles Schwab, a more traditional broker. They traded 40 times the per-dollar amount of stocks as Schwab traders.
Look, you can get rich doing just about anything. Go to med school and become a brain surgeon. Sell the finest underwater woven baskets the world has ever seen. Brew kombucha in your garage. Pump penny stocks.
Retail traders have turned to Robinhood as a popular platform for trading stocks. With its user-friendly interface and commission-free trading, Robinhood has made stock trading accessible to a wider audience. Traders are particularly attracted to low-priced stocks, commonly known as penny stocks or cheap stocks. They can offer the potential for significant gains.
Robinhood Markets, Inc. is an American financial services company headquartered in Menlo Park, California, that facilitates commission-free trades of stocks, exchange-traded funds and cryptocurrencies as well as individual retirement accounts via a mobile app introduced in March 2015. Robinhood is a FINRA-regulated broker-dealer, registered with the U.S. Securities and Exchange Commission, and is a member of the Securities Investor Protection Corporation. The company's revenue comes from three main sources: interest earned on customers' cash balances, selling order information to high-frequency traders (a practice for which the SEC opened an investigation into the company in September 2020) and margin lending. As of March 2022[update], Robinhood had 22.8 million funded accounts and 15.9 million monthly active users. In April 2022, Robinhood rolled out a cryptocurrency wallet to more than 2 million users.
Robinhood's original product was commission-free trades of stocks and exchange-traded funds. In February 2016, Robinhood introduced instant deposits, crediting users instantly for deposits up to $1,000; previously, funds took three days to appear via ACH transfer. In September 2016 they launched Robinhood Gold, a premium subscription plan that offers up to $50,000 in instant deposits, margin trading, and more market analytics. As of February 2017, the company had executed over $30 billion in trades. In August 2017, the company began offering free stocks in exchange for referring new users. In December 2017, options trading was introduced. Robinhood launched retirement accounts in January 2023. Services not offered include mutual funds and bonds.
Robinhood supports trading stocks and ETFs listed on the Nasdaq and New York Stock Exchange, and select over-the-counter securities. In August 2018, Robinhood introduced support for American depositary receipts, adding 250 highly searched international stocks. Robinhood has prohibited its users from purchasing some high-risk penny stocks, such as banning purchases of Helios and Matheson Analytics, the owner of MoviePass, in August 2018.
In March 2022, Robinhood announced it was adding four additional hours to extended trading for clients. In a push to eventually provide 24/7 equities trading, Robinhood said it will be available from 7:00 AM to 8:00 PM ET. In May 2022, Robinhood announced the launch of a stock lending program, allowing users to give Robinhood permission to lend out any fully paid stocks in their portfolio.
A Cash Management feature was announced in October 2019, with FDIC insurance from various partner banks and an annual 2.05% interest rate, though lowered before launch to 1.8% after a federal rate cut. The feature launched in December 2019. In March 2022, Robinhood launched the Robinhood Cash Card, a debit card that allows users to automatically invest in assets like stocks and crypto when spending money. With the launch of the Cash Card, the company retired its Cash Management debit card. 781b155fdc