Many tech stocks rank in the top 100 most popular list on Robinhood. But that list isn't limited to only tech stocks. In this Motley Fool Live video recorded on April 28, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss the best healthcare stocks that Robinhood investors like.
Keith Speights: Robinhood stocks have just attracted a lot of attention in recent weeks and months. Brian, I was looking through the 100 most popular stocks among Robinhood investors and I had to do some counting here, but there currently are 11 healthcare stocks that are in the top 100 on Robinhood.
I'm not going to tick off the list of all 11 stocks. But Brian, I know you've seen the list as well. Which of those healthcare stocks that are among the 100 most popular on Robinhood, especially stand out to you as pretty good picks for investment right now?
Brian Orelli: I was impressed that Johnson & Johnson (NYSE:JNJ) was on the list. That doesn't seem like the highflier looking for short-term returns than I associated with Robinhood investors. Maybe there's some buy and hold investors there.
I think Johnson & Johnson is a great opportunity to gain exposure to the healthcare space. They have medical devices, they have pharmaceuticals and they have general healthcare, over-the-counter drugs.
It's a company I would feel comfortable if you just want to get exposure to the healthcare space. It's a company I would feel comfortable owning and just not even following the news flow or their quarterly earnings and just buying it and planning on holding it through as long as I needed the cash.
Pfizer (NYSE:PFE) is also on the list. I hope that people aren't buying that strictly for the COVID-19 vaccine because it's in the news and they think 'all odds, Pfizer is big so I'll buy it for the COVID-19 vaccine.'
It's not clear how long Pfizer is going to be able to benefit from the vaccine. That's also true of Moderna (NASDAQ:MRNA), which is on the list. But at least with Moderna you're getting technology and it's almost a big biotech now, but certainly small relative to Pfizer and so the extra vaccines in its pipeline as they come into play will change the valuation story for Moderna heckler more than Pfizer is in its current state.
I don't own any of them on the list and actually, there were a few that were I don't really follow them all that closely. Maybe I should. Maybe I'll take that list and see whether anything deserves to be on my watch list. What about you, have you seen anything on the list that you like?
Speights: Well, first I would agree with you on Johnson & Johnson. I have said this before, some of our newer viewers might not have heard this before, but Brian had a great line and I recall years ago where you said anytime is a good time to buy Johnson & Johnson stock if you hold it long enough and I think you were exactly right, you are exactly right.
Johnson & Johnson is just a good, safe, stable, solid, blue-chip stock to buy and hold. It's not going to deliver jaw-dropping growth, but it's a good safe stock. It's a good fit for a lot of investors anyway. I would agree with you there.
Don't count on Pfizer's COVID-19 vaccine to necessarily be the big growth driver every year like it is for this year. But the company is in better shape than it's been in quite a while. It no longer has some of those older drugs that have lost exclusivity.
Pfizer's looking for better growth than it's had in years. That doesn't include the prospects for its COVID-19 vaccine. Pfizer also is a great dividend stock, if you're an income investor, the dividend is a little over four percent, and so Pfizer checks off a lot of boxes for more conservative investors, I think.
A lot of the stocks in the Robinhood Top 100 in the healthcare space have good growth opportunities, I think, but that growth is largely priced into the share price, for example, Bionano Genomics (NASDAQ:BNGO). I like the company's business. I think Bionano has some pretty good prospects, but the stock already factors in a lot of those growth prospects.
There is one of the under-the-radar stock among the Robinhood Top 100 that I'm watching. I wouldn't say this stock is a buy at this point, let me emphasize that, but it's one that I'm keeping my eyes on. This company called Tonix Pharmaceuticals (NASDAQ:TNXP). The ticket there is TNXP.
Tonix has a late-stage fibromyalgia candidate. They have a COVID vaccine in development that's based on horsepox, and so the company thinks that it could provide a lot longer-term immunity than some other vaccines.
Now, this vaccine is currently only in pre-clinical testing. The company hopes to advance it into clinical testing later this year. It's going to be really late to the party.
This is a wildcard. It's something I wouldn't bet on, but it's possible that it could provide value, especially in other countries around the world because if it does indeed offer longer-term immunity.
But Tonix's market cap is only around $350 million, so it's not priced ridiculously high in terms of some of its prospects. It's one that I'm keeping my eyes on anyway.
Orelli: Yeah, $350 million, I don't think investors are factoring in any of that vaccine into the evaluation of our late-stage fibromyalgia is a pretty big size market.
Speights: Yeah. The vaccine product rather is a lottery ticket with the stock, so I'm watching it. Again, way too early for me anyway to buy shares in a speculative clinical-stage play. But it's one that Robinhood investors brought to my attention and so I'm looking into it these days.