Some of Robinhood’s wealth, flush with cash from three rounds of fund raising this year, seems to be rubbing off on investors trading on the platform.
In June, Goldman Sachs reported that “amateurs’ favorite stocks are beating hedge fund picks.” Two months later, Adam Sender’s volatility hedge fund was reported to have returned 30% partly via a strategy betting on or against stocks that are famous among the Robinhood crowd.
Be it long or short ideas, the popular Robinhood stocks are being tracked. And there have been beating some of the best pickers.
I wanted to discuss four popular Robinhood stocks that look interesting in the near-term as well as for the long-term. One of more of these stocks could be potential doublers in the next 12-24 months.
Let’s discuss the bullish triggers for these Robinhood stocks.
- Aphria (NASDAQ:APHA)
- Moderna (NASDAQ:MRNA)
- Plug Power (NASDAQ:PLUG)
- Virgin Galactic Holdings (NYSE:SPCE)
4 Robinhood Stocks to Keep on Your Watchlist: Aphria (APHA)
Aphria is among the top Robinhood stocks to consider. APHA stock is among the 100 most-popular stocks traded on Robinhood.
While it’s well known that cannabis stocks have plunged in the last 18 months, APHA stock has fared better than most. Since January, the stock has declined 11.5%. During the same period, Aurora Cannabis (NYSE:ACB) stock has declined by 83.5%. Similarly, Tilray (NASDAQ:TLRY) stock has declined by 56.6%.
And while pot peer Canopy Growth (NYSE:CGC) stock seems to be the only gainer in that time period, I like APHA stock from a growth perspective.
One reason for Aphria doing well is its focus on a few important markets. The company already has a strong presence in Canada. With a target to expand in Germany and the LATAM market, the top-line growth is likely to be strong.
In addition, the company has a robust portfolio of adult use, medicinal and wellness products. The company’s adult use sales were $56.7 million CAD ($43.1 million) for Q4 2020. The segment reported year-on-year growth of 206%. With more products in the pipeline, the outlook is bright.
Furthermore, with a strong cash position and positive adjusted EBITDA, the company is well positioned for aggressive growth. APHA stock has been in a consolidation range and I expect upside in the coming quarters.
Moderna is among the leading companies in the race for the COVID-19 vaccine. I am not surprised that the stock has surged by 319% in a year. In the last few months, the stock has been consolidating. I believe that another rally is likely once late phase trials are completed.
The company recently reported Q3 2020 results and there were several positives.
The company’s Phase III study for COVID-19 vaccine is fully enrolled with the study expected to begin next year. Further, the company received $1.1 billion in customer deposits for supply of mRNA-1273 vaccine. This has been recorded as deferred revenue. However, it provides an insight into the potential cash flow growth once the vaccine hits the market.
In addition, Moderna also has a deep development pipeline for other vaccines and drugs. This includes 12 early stage programs, eight Phase I trials and three Phase II trials.
Plug Power (PLUG)
Plug Power has been surging this year with important developments for the company related to hydrogen fuel. PLUG stock is up 368% year to date. While the stock has corrected in the recent past, I would wait for further correction before fresh exposure. The company is among the list of 100 most-popular Robinhood stocks.
Plug Power has developed a new GenDrive product for European industrial and material handling vehicles. Europe is likely to increase the adoption of hydrogen fuel in the coming decade. The region can be a big market and potential game changer for Plug Power.
Airbus (OTCMKTS:EADSF) in September “revealed three concepts for the world’s first zero-emission commercial aircraft which could enter service by 2035.” One concept is the use of hydrogen fuel. This is a long-term plan, but underscores the point of wider adoption of hydrogen fuel in the coming years.
In terms of growth, Plug Power has guided for revenue of $1.2 billion and an adjusted EBITDA of $250 million by FY2024. If hydrogen fuel adoption gains traction in U.S. and Europe, the target is likely to be achieved. I would therefore consider gradual accumulation on corrections.
Virgin Galactic Holdings (SPCE)
Virgin Galactic is another attractive name for the long-term. Furthermore, SPCE stock has upside catalysts on the horizon.
The company has already received Federal Aviation Administration (FAA) approval to conduct spaceflight missions.
The path to flying paying customers is a verification and validation program comprised of 29 elements. As Aug. 2, the company had cleared 27 of those elements, including three in Q2 2020 alone. I believe that the stock will trend higher once all 29 elements are cleared.
Virgin Galactic has 700 individuals that have already signed for the commercial flight. Therefore, there is revenue visibility. The customer base is likely to expand once commercial flights start. The company already has eight pilots for commercial flights.
The company also plans to launch a private orbital spaceflight to the International Space Station and has already entered into a deposit agreement with 12 potential customers for those journeys. Virgin Galactic is also working on a high-speed vehicle mission.
Overall, the company has interesting programs lined-up. SPCE stock has also moved higher by 65% in the last year. Once revenue starts flowing, I expect more upside.
On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector. As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities.