The 14 Best Stocks to Buy on Robinhood

The Robinhood app has been all over the news because it has become a popular platform for day traders. In reality, while that's one possible (and dangerous) use for the app, it can also be used to buy stocks in order to hold them for the long-term.

In fact, Robinhood offers commission-free trading of fractional shares. That means that investors who may not be able to buy a full share of great companies can still own a piece of those top-tier brands.

Remember, it's not how many shares you own of a stock that matters. If you buy 10% of a share of a company and its price rises by 20%, the value of your investment will have risen by 20%.

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.

With its shares currently trading for over $3,000, Amazon can be intimidating for many newer investors. This is a perfect company to buy a fractional share of. You're getting a piece of a top retailer that's also a high-growth tech company.

Not every stock in your portfolio has to be a risky high-growth potential company. Think of Costco as an elephant slowly working its way up a hill. It's going to steadily grow and its pays a solid dividend.

ALSO READ: If You'd Invested $1,000 in Costco's IPO, This Is How Much Money You'd Have Now

Tesla has some risk but it also has an awful lot of upside. The company has a big lead when it comes to electric vehicles and that's an edge it should be able to build on. This is a highly innovative company led by Elon Musk (and that comes with some risk as well) but it has been a leader in a fast-growing category.

Target has gone from stale to innovative. The retailer appears to have figured out omnichannel and it has achieved success with its smaller format stores. It has also created real long-term value by developing owned-and-operated brands which it now has long-term control over.

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.

Starbucks has proven very resilient during the pandemic and that's because of its very strong technology. This is a company built around being a "third place" for consumers -- after home and the office -- that seamlessly pivoted to delivery, pickup, and drive-through because management had the foresight to have those channels operating even when they weren't the prime driver for business.

ALSO READ: 2 Reasons Starbucks Is a Good Buy

Square has taken something which used to be complicated -- point of sale (POS) systems -- and made them easy. That has allowed countless small businesses to have an easy payment processing solution and that's a business that's likely to grow during a period when many people are losing their jobs. Square, it should be noted, is also a viable payment processing system for larger businesses looking for flexible solutions.

Another growing player in the payments space, PayPal owns both its namesake product and Venmo. Those services have both grown during the pandemic and it seems likely that the company will benefit from a larger user base even after coronavirus passes.

Walt Disney has struggled with much of the world being at least partially shut down. There are few movie theaters open to release its films to and many of its theme parks are closed while others operate with limited capacity.

Despite those short-term issues, the company has strong prospects for the future. Its core businesses will recover and its Disney+ streaming service looks to be a monster hit.

ALSO READ: Disney+ Is the New HBO

The fast food giant's investment in technology has paid off. McDonald's had already put mobile ordering and delivery in place before the pandemic. That, plus its drive-through lanes, helped the company shift to a takeout, delivery, and pickup model as soon as traditional dining began to be shut down.

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.

While clothing retailers have been struggling, expect TJX to make a major comeback. The retail chain which own Marshalls, Home Goods, and TJ Maxx is well-positioned to bounce back now that shoppers can visit many of its stores. The chain offers bargains and it's going to have its pick of merchandise as full-priced brands look to get rid of unsold items.

Roku controls around 40% of the streaming market. The company has been able to make deals with television manufacturers because of its independence and it has been growing its advertising business. That's an area which should get increasingly stronger as cord-cutting continues to grow.

ALSO READ: Is Big Cable Dead? Cord-Cutting Has Tripled in a Year

After being derailed by an E-coli outbreak, Chipotle has fully recovered and revamped its business. The company has increased its digital presence and now has a second "make line" to increase production at its restaurants. That's a second setup where it can produce orders for delivery and pickup without disrupting its traffic. That, along with new menu items and limited-time-offers should drive continued growth.

Apple's success has been driven by the iPhone and there are no signs that the device has lost any popularity. This year's rollout will likely be pushed back from its traditional September launch date but that's not likely to slow demand.

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.

The streaming leader has gotten stronger during the pandemic. People are stuck at home and that has led millions more to add on Netflix subscriptions.

Once they sign up, people tend to stick with the service which has a very low churn rate. Netflix has built up a massive archive of content that keeps members happy even when it's not offering a new show that's a must-watch (something it's often also able to deliver).

ALSO READ: 3 Reason to Buy Netflix Stock Right Now

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daniel B. Kline owns shares of Apple, Starbucks, and Walt Disney. The Motley Fool owns shares of and recommends Amazon, Apple, Chipotle Mexican Grill, Netflix, PayPal Holdings, Roku, Square, Starbucks, Tesla, and Walt Disney. The Motley Fool recommends Costco Wholesale and The TJX Companies and recommends the following options: long January 2021 $60 calls on Walt Disney, short September 2020 $70 puts on Square, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, and short July 2020 $115 calls on Walt Disney. The Motley Fool has a disclosure policy.