Crowd wisdom provides invaluable insight into marketplace trends, but it’s most useful when tempered through the lens of analysis. While mobile stock trading platform Robinhood breaks out its 100 most popular stocks, it’s not meant to be a “point-and-shoot” investment guide. Add in some analysis, however, and we’ve got ourselves a list of Robinhood stocks to buy.
By using Robinhood’s stock list as our jumping-off point, we begin with a glimpse into the 100 companies young investors actively trade. But, since popularity is not a fundamental trait you can pin your investments on, not every stock on Robinhood’s top 100 list is a buy.
Some of these ultra-popular stocks, however, do double as strong stocks to buy right now. Which ones make the cut? Let’s take a deeper look at the top 10 stocks on Robinhood’s top 100 list:
Robinhood Ranking (as of 5/27): 1
The most popular stock on Robinhood, U.S. automaker Ford, also doubles as one of the best stocks to buy right now.
Yes, the U.S. economy is in shambles right now. No one is spending money on discretionary items, let alone dolling out several thousand bucks for a new car. The current dynamic is undeniably awful for Ford. But things will get better.
And the bull thesis on Ford stock is pretty simple:
Over the next few months, the U.S. economy will gradually re-open, and pent-up consumer demand will couple with ample fiscal and monetary stimulus to spark a sharp recovery in consumer spending. U.S. auto sales will rebound. Ford’s sales will rebound. And this rebound will carry over into supercharged demand in 2021-2022, on the back of new electric Ford vehicles, led by the Mustang Mach-E.
Big picture: Ford’s growth trends will meaningfully improve the back-half of 2020, and accelerate higher in 2021-2022. As they do, Ford stock will rebound from today’s decade-lows in a big way.
Robinhood Ranking: 6
The sixth most popular stock on Robinhood, Canadian cannabis producer Aurora, is breaking out in a big way on huge volume.
Less than two weeks ago, this was a $5 stock. Today, Aurora’s stock price sits above $15. Why the big rally? A strong earnings report which confirmed that this company is taking all the right steps to unlock significant long-term value.
Long story short, Aurora spent big on future growth opportunities in the wake of Canada legalizing cannabis. But early demand trends in Canada’s legal cannabis market were hampered by a lack of products and limited distribution. So, Aurora was left with huge expenses on limited revenues, which led to enormous losses and significant pressure on the balance sheet.
But, in early 2020, Aurora laid out a plan to cut expenses, curtail production and expansion, and increase organic growth through new product launches and broader distribution. Those changes are working wonders. In the third quarter, volumes and revenues grew by over 30% sequentially. Gross margins stabilized. And adjusted loss narrowed significantly.
All of these favorable trends will persist over the next few quarters as management keeps cutting costs and as Canada’s macro-cannabis demand trends improve on the back of new products and more stores.
As all that happens, beaten-up ACB stock will continue to break out.
Robinhood Ranking: 13
It makes sense why Bank of America stock has plunged to its lowest levels since 2017 amid the novel coronavirus pandemic. The U.S. economy is presently tanking. As goes the U.S. economy, so go U.S. bank stocks. With Bank of America being one of America’s largest banks, it’s tanked right along side the economy.
Makes sense. But what also makes sense, is that as the U.S. economy rebounds over the next few months, BofA’s stock will rebound as well.
It increasingly appears that we are through the eye of the coronavirus storm. Cases and deaths are ticking down essentially everywhere. The U.S. economy is gradually reopening. There’s tons of pent-up consumer demand. There’s also tons of fiscal and monetary stimulus in the pipeline.
Connecting the dots, the U.S. economy should rebound swiftly from its present troughs. As it does, U.S. bank stocks will rally — including BAC stock.
Robinhood Ranking: 14
Hydrogen fuel cell maker Plug Power is one of Robinhood’s most popular stocks (the fourteenth most popular stock on the trading platform), one of the hottest penny stocks (PLUG stock is up 120%-plus over the past three years), and it’s one of the best stocks to buy right now.
The bull thesis on PLUG stock boils down to one thing: companies across the globe are increasingly looking for cost-effective ways to cut carbon emissions and meet sustainability goals amid mounting pressure for corporations to “go green.”
Plug Power gives them a very easy, achievable way to do just that. The company makes highly efficient, exceptionally cost-effective hydrogen-powered forklifts for use in warehouses, which are both more effective and cheaper than traditional forklifts.
Big warehouse operators like Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN) already deploy Plug Power’s hydrogen forklifts in some of their warehouses. Over the next few years, every other warehouse operator will join these two market leaders, and by the end of this decade, Plug Power’s forklifts will be ubiquitous in warehouses across the globe.
As that happens, Plug Power’s revenues, profits and stock price will all charge higher (no pun intended).
Robinhood Ranking: 15
The fifteenth most popular stock on Robinhood, social media company Snap, has a bright future as a highly profitable, global digital advertiser with a choke hold on the teenager to young adult demographic.
Snap has created an ecosystem of services and products built on ephemeral content that resonates deeply with younger demographics. The company has also impressively innovated throughout its ecosystem, launching new services (like Discover content and Original shows), which have been huge hits (Snap Originals now has a monthly audience of 10 million users).
So long as the company continues to innovate on its core product offerings, the company will retain its digital choke hold on younger audiences. If that remains true, the company will offer best-in-breed digital ad solutions to reach young consumers.
With innovation in its corner, Snap can continue expanding its presence in the global (and growing) digital ad market. Revenues will charge higher. Scale will drive significant margin expansion. Big losses become big profits …
And Snapchat’s stock will fly higher.
Robinhood Ranking: 19
The biggest cannabis producer in Canada, Canopy Growth, is the nineteenth most popular stock on Robinhood, and one of the best stocks to buy right now.
The bull thesis on Canopy Growth centers around three things.
2.) Canopy’s margin trends will improve in the coming quarters, too, thanks to a focus on cost-cutting, curbed production and a reduced, streamlined global footprint.
3.) Bigger revenues on bigger margins will lead to narrower losses.
Big picture: over the next 12 months, Canopy’s revenues, margins and bottom line will all be in a better place than where they are today. Naturally, that means CGC stock should be higher in 12 months, than where it is today.
Robinhood Ranking: 26
There are two big reasons to buy and hold Facebook stock for the next several years.
First, this company will only become more dominant in the digital advertising space into 2025. That’s because the company is tapping into only about half of its total ad real estate potential, with WhatsApp and Messenger left largely “unadvertised.”
Over the next several years, the company will figure out how to optimally increase ad real estate on those communications platforms, thereby increasing the company’s presence in the global digital ad market.
Second, with Shops, Facebook finally has an end-to-end, native shopping tool which can help the company crack the social commerce code and turn into an online retail behemoth.
In sum, Facebook has huge growth prospects in both the digital advertising and e-commerce verticals. Those huge growth prospects will help keep FB stock on a winning path for the foreseeable future.
Robinhood Ranking: 46
Nio was once known as the Tesla of China. That comparison quickly faded as Nio’s growth trends collapsed in 2019 amid shrinking China auto sales. Nio stock collapsed, too.
But the comparison still rings true. Just as Tesla is the premium electric vehicle brand in America, Nio is the premium electric vehicle brand in China. The only reason the growth narrative paused in 2019 was because China’s auto market crumbled.
Surging demand for Nio’s premium EVs is here to stay, supported by a pause in China EV subsidy cuts, reinvigorated Chinese consumer EV demand from the entry of Tesla into the marketplace, and new vehicle launches from Nio.
As Nio’s demand trends surge higher over the next few quarters, its stock will surge higher.
Robinhood Ranking: 68
Payments processor Square is both a good near- and long-term buy.
In the near future, Square is the payments technology backbone for America’s small businesses. Small business America was entirely shut down by the coronavirus pandemic. Now, though, it’s reopening. And as it reopens, sales momentum across small business America will pick up, Square’s growth trends will meaningfully accelerate, and SQ stock will rebound.
In the long term, Square has a bright future as cash increasingly becomes an antiquated payment method, small businesses become more tech savvy, and consumers increasingly adopt the company’s new peer-to-peer payments app, Cash App. Those three growth drivers will sustain huge revenue and profit growth at Square for many years to come.
Huge revenue and profit growth pave the way for SQ stock to head way higher in the long run.
Robinhood Ranking: 74
Much like Square, Beyond Meat is one of the best stocks to buy both now and for the long haul.
In 2020, Beyond Meat’s grocery business will boom as meat shortages and buying limits on animal-based meat products push consumers into adopting plant-based meat options. Meanwhile, the food-service business will rebound meaningfully as restaurants and fast food chains across the globe reopen — and continue to unveil more plant-based, Beyond products.
Long term, Beyond Meat is positioned to win big thanks to a pivot in consumer behavior toward socially and environmentally friendly products and services. Plant-based meat is more socially and environmentally positive than animal-based meat (given that it respects animal welfare and reduces carbon emissions). Therefore, plant-based meat adoption — and by extension, Beyond Meat product adoption — is in the first innings of huge growth over the next decade.
Bottom line here is that BYND stock will be a winner both in 2020 and over the next 10 years.
Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he was long PLUG, SNAP, CGC, FB, NIO, SQ, BYND and TSLA.