This may not be your father’s or grandfather’s stock market. And in some ways brokerage platform Robinhood is proof of that. Then again, as many of the most popular Robinhood stocks can attest, today’s next generation of investors has a lot more in common with their elders than many give them credit for.
Brash brokerage industry upstart Robinhood has a reputation for catering to Millennials. There’s the zero-commission trading to consider, as well as a platform that’s fully in tune with today’s on-the-go and mobile younger generation. And at that age, of course, most of us don’t want to be like our parents. You’re young, fearless and of course, smarter than the generations that preceded you.
Well, that’s the popular version of how many younger adults see themselves. It’s timeless.
As part of that youthful mindset, it isn’t hard to see that the likes of one-time financial brokerage disruptor Charles Schwab (NYSE:SCHW) and its dowdy advertising aren’t reaching the younger generation. Swashbuckling Robinhood has swooped in to steal younger accounts for tomorrow, and beyond, from its clutches.
But as part of Robinhood’s allure to younger investors and its self-proclaimed mission to democratize finance for all, just what are its customer accounts buying? It turns out the truth — well, almost — looks a good deal like mom and pop investing.
In the following article, let’s explore three of Robinhood’s top 10 most popular stocks to own and which look ready to steal shares from the bears and give back to tomorrow’s investors.
Robinhood Stocks: Ford (F)
Source: Charts by TradingView
The first of our popular stocks to own according to the crowd-sourced vote at Robinhood are shares of Ford. Nearly 120 years old, this auto manufacturer is parked inside 925,000 accounts at present.
Shares of Ford have proven an awful investment for many of the more seasoned investors out there. The stock’s current dividend-adjusted price is pretty much where it was a quarter of a century ago, well before auto disruptor Tesla (NASDAQ:TSLA) came onto the scene as unwanted competition. But this popular stock may finally be ready to drive higher for the next generation of bulls out there.
Technically, shares have pulled back to retrace a full 50% of its March-to-May rally. The decline has occurred as the stock’s stochastics has formed a bullish crossover pattern out of oversold territory. With the recent low sandwiched in between the 62% – 76% retracement levels from the 2009 financial crisis, Ford stock’s hard times look ready to take a back seat.
General Electric (GE)
Source: Charts by TradingView
General Electric shares are the second of our popular Robinhood stocks to own. It’s the second most dearly held equity with nearly 835,000 customers holding shares in their accounts.
The industrial conglomerate and once longest-standing Dow Jones blue-chip constituent has fallen on harder times in recent years, but is widely seen as a turnaround play in today’s market. Value, anyone? Millennials may be able to talk up their parents or Grandparents on this one as well. However, don’t count famed value Octogenarian Warren Buffett as a fan.
The good news for this popular stock? It’s no secret 2020’s short-lived bear market hasn’t seen Warren at his best. His firm dumped Delta Airlines (NYSE:DAL), American Airlines (NASDAQ:AAL) and the rest of its industry stake near the market’s bottom. He also famously failed to live up to his calling of “buying when others were fearful” during the height of the pandemic this past spring.
Technically speaking, GE’s damaged shares also appear technically in strong position to take flight.
On the monthly price chart, General Electric has confirmed an 18-month double-bottom pattern formed just north of the stock’s 2009 financial crisis low. Now and with a bullishly diverging stochastics indicator also crossing over, this pullback style entry which tested the formation’s first pivot from December 2018 looks like a popular stock to own and buy right now.
Aurora Cannabis (ACB)
Source: Charts by TradingView
The last of our three popular Robinhood stocks are shares of Aurora Cannabis. We’ve dug deep down into 10th position for the Canadian cannabis play, but the stock is only slightly less popular than many household large-capitalization titans. Microsoft (NASDAQ:MSFT), Disney (NYSE:DIS) and Apple (NASDAQ:AAPL) are among those companies in the remaining spots. But is Aurora’s popularity among the company of giants really a surprise?
If investors are comparing market valuations and metrics like profits, Aurora’s acceptance certainly would be. But ACB’s ownership isn’t entirely surprising given it’s our northern neighbor’s second largest cannabis producer. As well, the industry is potentially part of a secular up-and-coming market well-suited to younger investors with higher risk tolerance.
Technically, those investors’ eyes may also like what they’re seeing on the price chart. Shares are showing signs of finally bottoming as indicated by the stock’s massive volume, monthly doji candlestick low established in May. Not that Aurora’s position is unique. The group has been systematically crushed over the past one to two years. Still, given Aurora’s business position and historical precedent of Wall Street sometimes prematurely writing off trends — like the internet back in days of yore — maybe Robinhood’s investors are onto something.
Investment accounts under Christopher Tyler’s management does not own any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
