The 3 Best Robinhood Stocks for Beginning Investors

Advertisement

  • Embark on your investment journey with our comprehensive guide to the best Robinhood stocks, tailored specifically for beginning investors seeking smart, low-risk options.
  • Microsoft (MSFT): Microsoft’s fortitude sets it apart from smaller or more unpredictable entities, offering a haven of stability for discerning investors.
  • Amazon (AMZN): Amazon presents an ideal starting point for novice investors, fortified by its expansive and formidable moat. 
  • Apple (AAPL): Apple has masterfully carved out its niche as a premium brand, cultivating a dedicated and loyal customer base that stands testament to its market prowess.
Best Robinhood Stocks for Beginning Investors - The 3 Best Robinhood Stocks for Beginning Investors

Source: mundissima / Shutterstock.com

Embarking on the Robinhood (NASDAQ:HOOD) investing journey unlocks the stock market’s secrets, especially when focusing on the best Robinhood stocks for beginning investors. For beginners, choosing the right stocks is crucial. This includes beginner-friendly stocks, low-risk options, and affordable choices in the realm of best Robinhood stocks for beginning investors. These elements are key to financial literacy for new investors, and understanding the best Robinhood stocks for beginning investors can be a significant first step.

We aim to empower you with Robinhood trading tips and basic stock analysis skills. You’ll learn to build a diverse portfolio, balancing dividend and growth stocks. This approach is essential for long-term investment success.

Our focus also includes tech stocks and value investing strategies, perfect for beginners. These categories offer a mix of innovation and intrinsic value. Using Robinhood, these strategies become more accessible, aiding in effective retirement planning.

Safe stocks to buy on Robinhood are not just about immediate gains. They’re about sustainable financial growth, important for future security. Whether you’re eyeing long-term investments or just starting, this guide is your essential Robinhood compass.

Microsoft (MSFT)

Microsoft logo close up. Microsoft (MSFT) Flagship Store Fifth Avenue, Manhattan, NYC.
Source: The Art of Pics / Shutterstock.com

Microsoft (NASDAQ:MSFT), a standout in the tech sector, boasts a year-to-date return of 54%. Importantly, this reflects its strong market adaptability and resilience. The latest quarterly earnings show a 13% increase in revenue to $56.52 billion and a 27% rise in net income to $22.29 billion, demonstrating significant growth and market confidence.

Furthermore, the company’s operating expenses grew only 1%, showing a strategic balance in spending. Consequently, the net profit margin increased to 39%, indicating Microsoft’s efficiency and profitability.

Moreover, earnings per share rose to $2.99, up by 27%, highlighting shareholder value. This, combined with a stable effective tax rate, illustrates Microsoft’s fiscal prudence.

On the balance sheet front, Microsoft remains solid, with a 24% increase in total assets to $445.79 billion and a 34% rise in cash and short-term investments to $143.95 billion. This positions the company well for future ventures.

Despite a 21% increase in total liabilities to $225.07 billion, Microsoft’s financial foundation remains strong, supported by a healthy total equity and price-to-book ratio.

Turning to the cash flow statement, it is impressive. The net change in cash soared by 411%, and free cash flow grew by 21%, reflecting operational efficiency and a robust business model.

Looking at market indicators, they further establish Microsoft’s strong position. With a market cap of $2.75 trillion and a price-to-earnings ratio of 35.80, it remains an attractive investment option. Its dividend yield of 0.81% adds to its appeal.

In conclusion, Microsoft’s financial performance and market presence underscore its status as a thriving tech giant. Microsoft, boasting a robust and ever-growing stature, stands on a foundation of a formidable balance sheet and impressive cash flow. This powerfully positions it for enduring triumphs, particularly in the realms of AI and cloud computing. For investors who covet both stability and growth within the vibrant tech sector, Microsoft emerges as a remarkably attractive option.

Amazon (AMZN)

amazon (AMZN) sign with dark background
Source: Eric Broder Van Dyke / Shutterstock.com

As an investor, especially for beginners on platforms like Robinhood, monitoring dynamic stocks like Amazon (NASDAQ:AMZN) is crucial. Amazon stands out among the best Robinhood stocks for beginning investors due to its impressive 67.3% year-to-date return. The company’s recent earnings, with a revenue of $143.08 billion, a 12.6% year-over-year increase, underscore its sustained growth.

Operating expenses grew to $56.87 billion, up 4.7%, balancing spending and growth effectively. Net income surged to $9.88 billion, a 244% increase, highlighting Amazon’s profitability. The net profit margin more than doubled to 6.9%, and earnings per share increased to $0.94, a 235.7% increase, signaling a robust return for shareholders and reinforcing its status among the best Robinhood stocks for beginning investors.

Amazon’s balance sheet remains solid with total assets at $486.88 billion, a 13.7% increase. Total liabilities rose by 4.5% to $303.91 billion, indicating prudent financial management. Cash flow metrics are positive, with a net change in cash of $14 million, a 100.6% increase, and free cash flow at $12.93 billion, a 668.4% rise. These statistics cement Amazon’s position as a top choice among the best Robinhood stocks for beginning investors.

With a market cap of $1.48 trillion and an average trading volume of 53.71 million shares, Amazon’s industry dominance is clear. Its strong earnings, solid balance sheet and impressive cash flow make it a compelling investment. For Robinhood beginners, Amazon’s strategic investments and adaptability in the market place it as a leading example of the best Robinhood stocks for beginning investors.

Apple (AAPL)

Apple’s (NASDAQ:AAPL) journey in the fluctuating financial market stands out, especially for those seeking the best Robinhood stocks for beginning investors. Despite facing a 49% year-to-date loss, Apple has shown remarkable resilience, an essential trait for the best Robinhood stocks for beginning investors. Its latest earnings reveal a slight 0.7% dip in revenue to $89.50 billion, yet its ability to remain financially stable is noteworthy.

Operating expenses rose by 2% to $13.46 billion. However, this was offset by an 11% increase in net income, totaling $22.96 billion. This growth underscores Apple’s effectiveness in profit conversion, a key aspect for the best Robinhood stocks for beginning investors, with its net profit margin improving by 12% to 25.7%.

The company’s earnings per share also improved by 13% to $1.46, in line with a 6.7% growth in EBITDA to $29.62 billion. These figures further solidify Apple’s position as one of the best Robinhood stocks for beginning investors. The effective tax rate remained stable, an important consideration for the best Robinhood stocks for beginning investors.

In the balance sheet, total assets slightly decreased by 0.1% to $352.58 billion, while total liabilities reduced by 3.9% to $290.44 billion. This fiscal prudence is a critical factor for the best Robinhood stocks for beginning investors. Additionally, a 27.4% increase in cash and short-term investments to $61.56 billion highlights Apple’s liquidity.

Overall, Apple’s financial performance and strategic foresight make it a standout among the best Robinhood stocks for beginning investors. Its solid business model and investment strategies make it a compelling choice for those new to investing.

On the publication date, Faizan Farooque did not hold (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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/the-3-best-robinhood-stocks-for-beginning-investors/.

©2024 InvestorPlace Media, LLC