10 Robinhood Stocks That Could Make You a Millionaire

Author: Rachel Warren | October 20, 2020

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You can still invest during an economic downturn

During these strange and tumultuous times, knowing where to invest your hard-earned money isn’t always easy. If you have spare cash flow and want to invest in the stock market, there are still plenty of high-growth investment opportunities to be had.

The Robinhood platform has skyrocketed in popularity with investors of all ages in recent years, and particularly those of the millennial generation. While some of the most popular stocks on the trading app aren’t necessarily worthy of their hype, other companies snagging top positions with Robinhood users are definitely worth a second look.

There’s no way to say with absolute certainty whether any one stock will make an investor rich. But, if you’re searching for stocks with millionaire-making potential, these 10 companies have been generating mouthwatering returns for shareholders and don’t look to be slowing down on momentum anytime soon.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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1. Alibaba

Chinese tech behemoth Alibaba (NYSE: BABA) has maintained its exceptional growth throughout the pandemic, boosting its revenue by 35% in fiscal 2020 from full-year fiscal 2019. The company closed out fiscal 2020 with 960 million global users, 780 million of which were in China. When Alibaba released its fiscal Q1 2021 financial results on Aug. 20, management reported its revenue up 34% year over year, while its active consumer base grew by 16 million in the quarter.

Shares of Alibaba are up 38% from the stock’s January trading price.

ALSO READ: These 6 Popular Robinhood Stocks Trade for a Whopping $6,807 -- Here's How to Score Them All for $6.81

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2. Amazon

It’s no secret that Amazon (NASDAQ: AMZN) has made more than a few investors millionaires, but its stock doesn’t come cheap. With shares currently selling for more than $3,100 apiece, Amazon may be a more attainable buy for investors with a significant wad of cash to spend. That being said, Robinhood does allow its investors to purchase fractional shares of a stock, so if you have your heart set on Amazon, its high price tag needn’t necessarily serve as a deterrent.

Shares of Amazon have gained close to 69% since the beginning of the year. In the second quarter, which ended on June 30, the company boosted its operating cash flow by 42% and realized net sales growth of 40%.

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3. Microsoft

Another tech stock that continues to be a favorite with Robinhood investors, Microsoft (NASDAQ: MSFT) has remained relatively impervious to the pitfalls of the ongoing economic recession. While shares of the high-growth company dipped slightly in March, the stock is now sitting 34% above its trading price in January.

In the final quarter of fiscal 2020, Microsoft reported 13% revenue growth and an 8% increase of its operating income on a year-over-year basis. The work-from-home boom made an extremely positive impact on the company’s top and bottom lines, particularly in its more personal computing, intelligent cloud, and productivity and business processes segments. These divisions saw fiscal Q4 revenue growth of 14%, 17%, and 6%, respectively.

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4. Alphabet

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) hasn’t been totally immune to the coronavirus stock market, but it’s still safe to say that the multinational conglomerate has fared better than most. The company reported a slight 2% decline in its total revenue during the second quarter of this year, but it closed the three-month period with nearly $18 billion in cash and cash equivalents. Alphabet’s Google Cloud segment was a key factor in the company’s Q2 earnings, with revenue in this segment up 43% year over year.

ALSO READ: 4 Stocks Robinhood Investors Should Buy and Hold for 5 Years

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5. Nike

While some retailers have faced major headwinds due to extended lockdowns and closures, Nike (NYSE: NKE) has relied on its burgeoning e-commerce segment to keep its head above water. While the company marked a 1% decline in reported revenue during the first fiscal quarter of 2021 (which ended on Aug. 31), its direct sales grew 12% and digital sales were up a significant 82% during that period. The stock has gained more than 95% over the past five years. Analysts on Wall Street project that Nike will grow its earnings by more than 25% per year over the next five years.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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6. Teladoc

Digital health solutions have become more popular (and more necessary) than ever this year, and companies like Teladoc (NYSE: TDOC) have reaped the benefits of this boom. The telehealth market is expected to attain a $559.5 billion valuation by 2027, according to Fortune Business Insights. Teladoc is at the forefront of the ever-changing healthcare landscape.

Shares of the company have grown by an astonishing 169% from earlier this year. During the second quarter that closed on June 30, Teladoc reported a 203% increase in visits on its platform while its revenue was up 85% on a year-over-year basis.

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7. Apple

Apple (NASDAQ: AAPL) is a stock on many investors’ radars during any economic climate, and the tech giant has maintained its dominant position in the market despite prolonged closures of many of its retail outlets. Demand for the company’s products has continued to surge throughout the pandemic, as evidenced by the robust sales growth Apple has reported this year.

During the fiscal third quarter, which concluded on June 27, Apple saw an 11% year-over-year increase in revenue while its earnings per share rose by 18%. The stock currently trades at about 35 times earnings.

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8. Dexcom

Dexcom’s (NASDAQ: DXCM) strong performance throughout the pandemic can be largely attributed to the fact that its products are inherently recession-resistant. As a leading developer and manufacturer of continuous glucose monitoring devices, Dexcom has consistently outpaced the performance of the S&P 500 this year.

The stock is trading about 81% above its price in early January. Dexcom’s second-quarter financial results were stellar -- the company reported 34% revenue growth on a year-over-year basis. Management expects the company’s full-year 2020 earnings to grow by 25% from 2019, with a gross profit margin of at least 65%.

ALSO READ: How My First Robinhood Trade Went Disastrously Wrong

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9. Netflix

With more and more users being housebound due to lockdowns and stay-at-home orders, Netflix (NASDAQ: NFLX) has seen a considerable uptick in its consumer base since the start of the pandemic. During the first six months of 2020, Netflix reported 26 million paid net subscriber additions, whereas it achieved just 12 million new paid users during the same period in 2019.

Wall Street analysts project that Netflix will increase its annual earnings by more than 35% over the next five years alone. Shares of the company are up 61% year to date.

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10. Zoom

While some investors were worried that the hype surrounding Zoom (NASDAQ: ZM) would die down quickly, the stock’s unparalleled growth just isn’t slowing down -- at least not yet. It’s doubtful that this hot stock can continue to skyrocket at its current rate indefinitely (shares are up 727% year to date), but analysts on Wall Street seem optimistic about the company’s future continued growth trajectory. They estimate that Zoom could grow its earnings by close to 40% per year over the next five years.

When the company reported its financial results for the second quarter of fiscal 2021 on Aug. 31, it disclosed unprecedented year-over-year revenue growth (355%) to the tune of $663.5 million. Management expects that the company will grow its fiscal 2021 revenue between 281% and 284% from fiscal 2020.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Previous

Next

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Diversify, diversify, diversify

One of the best ways to shield your investments from unnecessary volatility during all market conditions is to keep your basket of eggs diversified with a mixture of stocks from a variety of sectors that present differing degrees of risk. Your own personal investment preferences and your portfolio’s tolerance for risk should also factor into the picture.

A long-term mindset is key to wealth-building. The high-growth stocks on this list probably won’t get you into the seven-figure club overnight, but each company could significantly boost your portfolio over the next decade or more. In the words of Warren Buffett, “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.”

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Netflix, Nike, Teladoc Health, and Zoom Video Communications. The Motley Fool recommends DexCom and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2021 $115 calls on Microsoft, long January 2021 $85 calls on Microsoft, and short January 2022 $1940 calls on Amazon. The Motley Fool has a disclosure policy.

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