The “meme stocks” trend may have eclipsed it, but stocks popular among traders who use Robinhood (NASDAQ:HOOD), aka “Robinhood stocks,” remain some of the most-talked about ones out there. That’s true among both Main Street and Wall Street investors.
Unlike its 2021 meme counterpart, this group is a much wider mix of publicly traded names. Included in it are some of the largest, most well-known stocks out there. Think tech giants like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN). This list of equities is also more travel industry heavy as well.
Airlines like American (NASDAQ:AAL) and cruise line operators like Carnival (NYSE:CCL) rank high on the list. Mostly, due to investors/traders looking for exposure to a post-Covid recovery of the travel industry. On top of this, there are quite a few names you could classify as being in the “meme” category. For example, several much-discussed, low-priced penny stocks, as well as stocks in industries such as cannabis.
Although this investing platform enables you to buy fractional shares, it makes sense why you may want to focus on the lower-priced ($25 per share or less) ones instead. With lower stock prices, and high investor attention, they stand to make outsized moves on any positive news. So, which $25 per share or less Robinhood stocks are worth a look? Consider these seven, ranging from “old-school” Fortune 500 mainstays, to speculative penny plays:
- Ford (NYSE:F)
- Naked Brand Group (NASDAQ:NAKD)
- Nokia (NYSE:NOK)
- Sundial Growers (NASDAQ:SNDL)
- AT&T (NYSE:T)
- Tilray (NASDAQ:TLRY)
- Zynga (NASDAQ:ZNGA)
Robinhood Stocks to Buy: Ford (F)
Ford stock has long been popular among users of this brokerage app. And it’s not just because of its name recognition, but for its dividend as well. But even as the automaker was forced to suspend its payout at the onset of the Covid-19 pandemic, while it impacted its stock price, it did little to dent its appeal among the Robinhood set.
After tumbling to under $5 per share during the coronavirus crash, Ford shares made a slow-and-steady recovery during 2020. Then starting in 2021, things really started to accelerate. As the “old school” Detroit automaker began to unveil its plans to pivot toward making just electric vehicles (EVs), investor enthusiasm went into hyperdrive.
Other factors, such as news of it reinstating its dividend, plus the Rivian (NASDAQ:RIVN) IPO, have kept it on an upward trajectory. The dividend-related boost makes sense, yet you may be wondering why the Rivian IPO bodes well for Ford. Well, as an investor in the venture, holding a 12% stake, based on the current RIVN stock price, its stake is worth around $17.8 billion. Not bad for a company sporting a total market capitalization of $79.1 billion.
So, after its incredible run since early 2020, why is it still worth buying? There’s plenty of upside still left on the table at $19.75 per share. Continued success with its EV pivot, plus news of it starting to recover from the global chip shortage, could send it well into the $20s per share.
Naked Brand Group (NAKD)
Penny stock Naked Brand Group is a name that ranks high on both the “Robinhood stocks” and “meme stocks” lists. Initially, its popularity among retail investors was sparked by the intimate apparel company’s divestiture of its brick-and-mortar business, and plans to become an e-commerce pure play.
However, more recently, something else has been driving attention to NAKD stock. That would be its new plans to merge with privately held Cenntro Automotive Group. With this deal, this stock will go from lingerie play to EV play in the blink of an eye. This deal is just one example of an interesting trend that has started to play out among low-priced names.
Similar to the Support.com deal, in which that company transformed into Greenidge Generation (NASDAQ:GREE) via a reverse merger deal, this is another merger deal that will turn a popular yet not very exciting company into a “hot” growth play. That said, so far, the planned Naked/Cenntro tie-up hasn’t given this stock much of a boost. At least, compared to the tremendous one it received during “meme stock madness.”
However, as it makes progress closing this deal, and if meme enthusiasm returns to NAKD stock? This low-priced name, trading for around 75 cents today, could zoom back to prices well above $1 per share.
Robinhood Stocks to Buy: Nokia (NOK)
Like NAKD stock, NOK is another name that’s ranked high among meme investors and Robinhood investors alike. As you likely recall, last winter shares in this Finland-based telecom equipment maker went “to the moon,” soaring from $4 to as much as $9.79 per share.
Since tanking shortly after its short-lived days as a meme stock? It hasn’t made it back to its highs. But thanks to the success it’s had so far with its turnaround efforts, Nokia has made a partial recovery. It’s trading for around $5.50 per share as of this writing.
Some may think that this stock, which is a bit of a value play, could become a value trap. However, as our Louis Navellier has argued, shares stand to breakout once again. How so? Between the progress it’s making from growing its 5G equipment business, plus the prospect of the chip shortage eventually ending, the company has a strong chance of delivering much stronger financial results in the years ahead.
Its days of experiencing meme-related price spikes may be in the past. Yet, in hindsight, buying low-priced NOK stock today could prove to be a very profitable move. Eventually, once the chip shortage issue is no longer holding it back, it could easily move back to its nearly $10-per share meme high. Or perhaps, even higher.
Sundial Growers (SNDL)
Pot stock Sundial Growers has made some wild moves throughout 2021. Hope and hype surrounding possible U.S. Federal legalization of marijuana, plus the meme trend, helped it rocket to as much as $3.96 per share back in February.
But in the months that followed, SNDL stock gave back practically all of its gains. Lately though, it has been spiking in price again, going from 65 cents to about 84 cents today.
What’s behind this partial “to the moon” move? As InvestorPlace’s William White reported Nov. 12, news of its plans to start a share repurchase program was the likely cause of this spike. Buying back shares could help counter some of the heavy shareholder dilution seen with it so far this year. Emphasis on “some,” as said dilutive capital raises continue to somewhat dampen its appeal.
Following this fast surge in price, it wouldn’t be surprising if shares fall back again. Nevertheless, if it drops back to a more reasonable price? At a lower enough entry price, risk/return could swing in your favor. Between its legalization catalyst, plus the company’s other efforts to create shareholder value, this could be one of the more speculative Robinhood stocks that embarks on an epic comeback, if/when U.S. legalization happens and/or its latest endeavors start to pay off.
Robinhood Stocks to Buy: AT&T (T)
AT&T is another example of a stock that became popular on Robinhood due to its dividend. It’s still popular among this trading community. However, shares in the telecom and media conglomerate have struggled over the past six months. Largely, due to planned cuts to its juicy payout.
Back in May, the company announced plans to spin-off its media empire (WarnerMedia), in a reverse Morris Trust deal with Discovery (NASDAQ:DISCA, NASDAQ:DISCK). Once this deal closes, the company will again become a telecom pure play, but one that sports a much lower yield.
That has turned off investors, who see it at best as an income play, with little confidence/interest in its underlying business. As a result, T stock has slid from around $32 per share when the divestiture plans were announced, to just under $25 per share today. This pullback could continue, as investors interested in the Discovery Warner Bros carve-out will likely wait for the deal close to buy.
Once the spinoff is complete, you may want to consider it. It’s already cheap at a forward P/E (price-to-earnings) ratio of 7.4x. After another slide, it’ll be at rock-bottom levels in terms of valuation. At this point, it could become an asymmetric wager, as upside from improved operating results (for example, from the 5G rollout) could exceed further losses.
At around $13 per share, TLRY stock today trades far below the meme high ($67 per share) it briefly hit in February. This hasn’t, however, kept it from still being popular among members of the Robinhood stocks community.
These investors, some of which admittedly may be still holding the bag from last winter’s meme run, likely believe that a comeback is possible. Is this a valid reason to buy it, on rebound hopes? Yes. As I made the case last month, Tilray is still poised to turn a new leaf, as it where.
While it has fallen onto Congress’s back burner, legalization of marijuana on the U.S. Federal level remains a strong possibility within the next few years. Even if next year’s midterm election results reverse the “blue wave,” and the Republican party regains control of the House and Senate. Recent news of a Republican-sponsored pot legalization bill signals that cannabis reform is becoming a bi-partisan issue.
If the proverbial can keeps getting kicked down the road with legalizing pot, there’s something else that could give Tilray shares a lift. The company’s expansion efforts in its home market of Canada, plus other international expansion plans, may help it take off in price once again.
Robinhood Stocks to Buy: Zynga (ZNGA)
Zynga’s low share price, plus the pandemic tailwinds it received for its mobile gaming business, is likely what’s behind its popularity on Robinhood. This popularity has fallen back a bit this year, as seen from the stock’s more than 25% decline year-to-date.
While mobile gaming plays aren’t as popular as they once were, you may want to give ZNGA stock a look. With Covid-19 lockdowns a thing of the past, sales growth deceleration lies ahead, from 40.85% this year to 11.3% next, per analyst estimates. Earnings, though, per the sell-side’s numbers, are expected to see a boost (18.6%) in 2022.
What’s even more appealing, is the stock’s reasonable valuation. Trading for 2.7x next year’s sales, and 18.3x next year’s earnings, ZNGA stock is much more reasonably priced than Skillz (NASDAQ:SKLZ). Although Skillz is growing at a faster clip, and may also be a stock worth looking into, this more mature mobile gaming operator looks cheap relative to its moderate level of expected earnings growth.
I wouldn’t expect to get rich off of Zynga. Nevertheless, if you’re looking for a name that’s on the minds of retail investors, that could see a decent boost once bullishness returns in full force, then this is one to consider.
On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.