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These 3 Companies Will Be Robinhood Stocks in 2021

By Dan Caplinger - Jan 20, 2021 at 12:36AM

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They're not among the top 100 on Robinhood yet, but they should be.

A whole new generation of investors has taken the Robinhood brokerage app by storm. It's a mark of distinction for a company to be considered a "Robinhood stock" -- that is, among the most popular 100 stocks on the platform.

Long before Robinhood was available, the Motley Fool CAPS service offered a similar way for our investing community to weigh in on the most popular stocks. The stock-picking game allows members to pick stocks to outperform or underperform the market. CAPS then aggregates all the views of the entire community to come up with a rating. A five-star rating makes a stock the cream of the crop, while one star goes to the stocks that get the poorest reception in our investing community.

As most investors know, the key to success is finding top stocks before they gain mainstream popularity. With that in mind, here are three growth stocks that aren't yet on the Robinhood top 100 list, but that have gotten coveted five-star ratings on Motley Fool CAPS. Don't wait to take a look -- because they might well be on the Robinhood list before you know it.

AAXN Chart

AAXN data by YCharts.

1. Axon Enterprise

Axon Enterprise (AXON 0.83%) is best known for its Taser stun-guns, and that's what initially drew the attention of Fool members on CAPS. The stock has gotten nearly 1,600 active picks, and an overwhelming 94% of those were positive recommendations, so Axon has earned its five-star rating. Its stock has more than doubled in price in just the past 12 months.

Axon has gone beyond Tasers to embrace a more complete selection of vital technology for law enforcement uses. The company's body cams and vehicle cams have become increasingly necessary, both for police oversight and for use in court proceedings. Axon has also come out with a digital cloud-based evidence management platform designed to help agencies track the information they collect for use in prosecution.

The future is bright for Axon. The company is looking into more cutting-edge applications, such as building artificial intelligence capabilities and dispatch services into its offerings. Axon's revenue represents just 2% of its addressable market. That leaves plenty of growth ahead for the body-cam maker.

Person holding smartphone in hand.

Image source: Getty Images.

2. Magnite

Magnite (MGNI -0.65%) has tapped into the demand for programmatic advertising services in a big way, and it's paying off for shareholders. The stock has more than tripled over the past year, and that's made it a growing favorite among Motley Fool CAPS members. Out of 369 picks, Magnite has convinced all but three of those rating the stock that it will outperform the broader stock market.

Magnite operates a service that lets publishers of websites, apps, and connected TV content platforms generate revenue from inviting advertisers onto their platforms. Its supply-side model is essentially the mirror image of what The Trade Desk (TTD -1.94%) does in helping ad agencies find places to post advertising content.

The recent explosion in the volume of connected TV programming and other available ad space has given Magnite a unique opportunity to grow alongside the markets it serves. If ad spending picks up along with the broader economy, then there could easily be further room to run for the supply-side ad platform.

3. Shockwave Medical

The past year has been kind to shareholders in Shockwave Medical (SWAV -1.22%), as the stock has more than tripled since last January. The medical device maker is a pioneer in intravascular lithotripsy technology, which it uses to help patients suffering from atherosclerotic cardiovascular disease. The equipment helps minimize patient trauma while simplifying medical procedures, reducing complications, and lowering costs.

Shockwave is still building up its following on Motley Fool CAPS, but early pickers like what they see. Among those rating the stock, 180 out of 182 think it will outperform the market.

The U.S. Food and Drug Administration has approved Shockwave's platform to treat some diseases, but the company hopes that its use can be far broader. Investors will want to watch closely as Shockwave goes through more clinical trials and seeks FDA approval for a wider range of treatment indications.


Robinhood investors like stocks that have strong growth potential and have performed well. Shockwave, Magnite, and Axon fit the bill, making them prime candidates to be the next Robinhood stocks for 2021.

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Stocks Mentioned

Axon Enterprise Stock Quote
Axon Enterprise
$99.40 (0.83%) $0.82
Magnite, Inc. Stock Quote
Magnite, Inc.
$10.64 (-0.65%) $0.07
The Trade Desk Stock Quote
The Trade Desk
$52.64 (-1.94%) $-1.04
ShockWave Medical Stock Quote
ShockWave Medical
$158.27 (-1.22%) $-1.95

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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