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15 Robinhood Stocks That You Shouldn't Overlook

By Rachel Warren - Apr 11, 2021 at 8:00AM
Mature woman sitting at kitchen table looking at computer

15 Robinhood Stocks That You Shouldn't Overlook

Building a market-beating portfolio in 2021

Robinhood stocks have led the headlines in recent months as a series of explosive meme stock trading wars have taken the investor world by storm. Robinhood sometimes gets a bad rap with the more traditional investor crowd, but it shouldn’t. At the end of the day, Robinhood is simply one of a wide range of trading platforms allowing individual investors access to buy and sell thousands of stocks at zero commission.

The easy-to-use platform is incredibly popular with millennials, but there are plenty of stocks on the platform that pose compelling buys for investors of all ages, portfolio types, and trading styles.

These are 15 Robinhood stocks that you definitely shouldn’t overlook as you expand your portfolio in 2021 and beyond.

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. Snap

Social media company Snap (NYSE: SNAP) didn’t follow the wider market’s decline one year ago. Not only did shares remain steady in the March 2020 crash, but the stock has gained roughly 400% over the past year alone.

The company’s popular camera app Snapchat reached a whopping 265 million daily active users in the final quarter of 2020, a 22% spike from the year-ago period. Snap’s 2020 revenue grew 46% from 2019, while its top line surged 62% in the fourth quarter alone.

Snap is continuing to grow its ad platform through a series of initiatives and partnerships with major global brands. The company has expanded into the world of augmented reality advertising, and its fast-growing Discover entertainment platform that features an array of shows and other content keeps proving that Snap is far more than just a popular camera app.

ALSO READ: 3 Robinhood Stocks That Are Ridiculously Cheap

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Teens looking at Mac computer in classroom

2. Apple

A classic pick for tech investors, Apple (NASDAQ: AAPL) continues to be one of the top stocks to buy for a premier combination of added portfolio value and growth. Sales from the company’s iPhone 12, which it launched in October, are driving a new wave of tremendous balance sheet gains.

In the first quarter of the company’s fiscal 2021 (ended Dec. 26), Apple reported 21% year-over-year revenue growth. The company also achieved double-digit revenue increases in each of its individual product categories in the first quarter, which resulted in Apple generating operating cash flow of about $40 billion.

Apple doesn’t pay the highest of dividends (0.6% at the time of this writing). However, it has a proven track record of consistently raising its payout. The company has also demonstrated an unwavering commitment to continue meeting its obligation to shareholders despite economic headwinds. In the first quarter alone, the company paid out more than $30 billion in shareholder dividends.

Apple is a classic pick for investors of all trading styles and risk profiles. While the company may not deliver lightning-fast growth to your portfolio, its ability to tap into new and existing sources of revenue growth while remaining an unequivocal leader in the world of big tech makes it a compelling buy for the long-term investor.

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3. Amazon

Amazon (NASDAQ: AMZN) is one of the best examples of the allure of the increasingly technology-driven world we live in to both consumers and investors. The company has a clear and ever-expanding foothold in extremely lucrative sectors ranging from e-commerce to technology to cloud computing. This not only makes Amazon a formidable presence in whatever industry it decides to expand to next but also means remarkable upside potential for new and existing shareholders.

Shares of the company have spiked 60% over the past year alone, and the stock is now trading for more than $3,300 per share at about 80 times trailing earnings.

The year 2020 was simply another in a long series of remarkable growth for Amazon. During the 12-month window, the company reported 38% net sales growth while net income grew by 84% year over year. In the fourth quarter alone, Amazon’s net sales rose 44%.

Management has forecast between 33% and 40% net sales growth for the first quarter of 2021.

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Nurse in personal protective equipment giving injection to patient.

4. Pfizer

On April 1, Pfizer (NYSE: PFE) released top-line results from the phase 3 study of its COVID-19 vaccine, which the company developed with BioNTech.

The data showed that the vaccine called BNT162b2 demonstrated 91.3% efficacy against COVID-19 up to six months after individuals received the second dose. Notably, the vaccine was also 100% effective against the South African variant.

This is all great news for the general population at large, and it also bodes extremely well for Pfizer’s continued balance sheet growth. The company has said that it expects to generate about $15 billion in revenue from its COVID-19 vaccine in 2021 alone, with it forecasting up to 47% total revenue growth for the full year. For context, Pfizer’s 2020 revenue increased only 3% operationally from 2019.

As one of the world’s largest pharmaceutical companies, Pfizer has a diverse portfolio of top-selling products in its stable apart from its COVID-19 vaccine, including names like Eliquis and Ibrance. The company also pays a robust dividend with an above-average yield of 4.3% based on current share prices.

ALSO READ: Robinhood Investors Are Quietly Buying More of These Stocks

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Espresso maker pouring coffee into cup

5. Starbucks

Starbucks (NASDAQ: SBUX) hasn’t had the easiest time since the pandemic started, but the stock is still a viable long-term play for patient investors. Sales have declined noticeably since the pandemic began amid multiple waves of lockdowns and limitations on in-person dining.

The good news is, the company appears to be narrowing its losses. Whereas Starbucks reported a 9% decline in global comparable-store sales in the fourth quarter of 2020, its global comparable-store sales were only down 5% in the first quarter of fiscal 2021.

In another positive sign that Starbucks is making firm steps toward recovering from pandemic losses, management announced the launch of 278 net new stores during the first quarter.

Starbucks has also continued to pay out dividends to shareholders during the pandemic, and it has a solid track record of increasing its payout on an annual basis. The company’s dividend yields 1.5% based on current share prices, which is right in line with what the average stock trading on the S&P 500 pays.

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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Three teens smile and look at one's phone screen.

6. Facebook

Facebook (NASDAQ: FB) has continued to deliver impressive growth and capitalize on the wave of broader market gains that have swept the tech industry over the past year.

Facebook reported that its 2020 revenue grew 22% from 2019, while net income rose by a whopping 58% during the 12-month period. In the month of December alone, Facebook’s average daily active user and family daily active people count hit the 1.8 billion and 2.6 billion thresholds, respectively.

Facebook is a tried-and-true pick for long-term investors that has proven it can deliver meaningful growth and expand its business in even the most trying of economic times. Investors searching for a robust and recession-proof tech play need look no further than this popular FAANG stock.

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Family sitting on a couch and watching TV in the dark.

7. Netflix

Entertainment consumers are increasingly turning to digital solutions to fulfill their content needs, and there’s no better example of the exponential growth that’s occurring in the streaming content universe than Netflix (NASDAQ: NFLX). The company has seen exponential growth in the age of COVID-19, but its potential both as a business and as an investment far exceeds the reach of these near-term tailwinds.

In 2020, the company reported 24% revenue growth and operating profits that surged 76% on the heels of robust platform expansion and a fast-growing slate of original content. The final quarter of the year saw Netflix surpass more than 200 million paid members, and its average paid streaming memberships grew 23% year over year during that period.

Management is forecasting 24% year-over-year revenue growth for the first quarter of 2021.

ALSO READ: 3 Ultra-Popular Robinhood Stocks That Are Screaming Buys

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Engineer looking at software data on computer.

8. Microsoft

Shares of mega-cap stock Microsoft (NASDAQ: MSFT) have jumped 50% over the past year, and its balance sheet has continued to mark exceptional top- and bottom-line growth despite the economic crisis.

In fiscal 2020, Microsoft reported 14% overall revenue growth. The company’s net income increased by a similar rate -- 13% compared with fiscal 2019.

Microsoft has generated double-digit top- and bottom-line growth in each of the quarters it’s reported for fiscal 2021 so far. The company grew its revenue 12% in the first quarter and 17% in the second quarter on a year-over-year basis. Microsoft also reported respective net income increases of 30% and 33% during these quarters.

Microsoft’s leadership in the cloud computing space continues to be a key catalyst for growth. The company also just inked a five-year, $22 billion government contract (subject to extension) in which it will supply tens of thousands of augmented reality headsets to the military. As Microsoft continues its pattern of record-breaking business moves and grows its market shares in the gaming, cloud computing, and office software sectors, investors will reap the rewards of the company’s sky-high growth trajectory.

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9. Palantir Technologies

Big data analytics provider Palantir Technologies (NYSE: PLTR) may not be on most Robinhood investors’ radars. But there are plenty of reasons that long-term investors should be drawn to this growth stock. The company only went public last fall, and despite the fact that shares have surged by more than 140% in the months following, it still trades for just around $20.

With an impressive stable of clients ranging from federal agencies to major corporate firms, Palantir has an abundance of catalysts to stimulate compelling growth over the coming decades. In the full-year 2020, Palantir grew its revenue 47% on a year-over-year basis. The company’s average revenue per customer also rose to $8 billion, which represented a 41% increase from the previous year.

Palantir marked some impressive milestones during the final quarter of 2020. Its fourth-quarter revenue surged 40% from the year-ago period, while the company added a host of new contracts to its roster, with clients including the U.S. Air Force, U.S. Army, and the U.S. Food and Drug Administration.

Investors who are in it for the long haul and are interested in investing in a less traditional side of the tech space with tremendous growth potential should definitely take a second look at Palantir Technologies.

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Three young people clink glasses of soda

10. Coca-Cola

If you’re an investor looking to increase your dividend income, Coca-Cola (NYSE: KO) is a classic choice that has stood the test of time and continues to deliver generous payouts to shareholders. The company is one of a small handful of stocks that qualify as Dividend Kings. A Dividend King is a stock that has raised its dividend payout every year for at least 50 years. Not only has Coca-Cola increased its dividend every year for nearly 60 years, but it boasts an above-average yield of 3.2%.

Coca-Cola has seen its beverage sales decline during the pandemic, but signs of improvement were apparent in the company’s fourth-quarter and full-year 2020 financial report. Although Coca-Cola’s net revenue for 2020 was down 11%, this metric saw a much slimmer 5% decline in the fourth quarter. In addition, the company’s fourth-quarter operating income actually increased 8%. Coca-Cola also managed to grow its free cash flow by 3% last year as a result of fewer capital expenditures.

Management is expecting a slow but steady recovery in 2021 and is forecasting organic revenue growth in the upper single digits for the full-year period.

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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Young woman smiling and looking at phone while lying down

11. Twitter

Twitter (NYSE: TWTR) has drawn mixed enthusiasm from investors over the years, largely because its balance sheet and platform growth haven’t usually been on par with that of other popular social media stocks. Still, the company reported 25% revenue growth in fiscal 2018 and a 14% revenue increase in fiscal 2019.

Over the past year, shares of the company have shot up by more than 150%. And while Twitter’s fiscal 2020 revenue grew by a more modest 7%, its fourth-quarter revenue surged 28% and average monetizable daily active usage increased 27% from the year-ago period.

Twitter isn’t a get-rich-quick stock, but its slow and steady pattern of user and revenue growth make it a solid choice for patient, long-term investors to buy and hold in their basket of stocks.

ALSO READ: 3 Robinhood Stocks That Are Great Buys

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12. NVIDIA

Graphics specialist NVIDIA (NASDAQ: NVDA) is another popular Robinhood stock that can stand the test of time and continue providing growth to the long-term investor’s portfolio for decades to come. Shares of the company have remained on a steady upward growth trajectory this past year, up more than 110% from last April.

The company’s gaming and data center business segments are key catalysts to its ongoing growth story. In NVIDIA’s fiscal 2021 (ended Jan. 31), gaming segment revenue surged 41% while the company’s data center segment generated 124% revenue growth. NVIDIA’s total fiscal 2021 revenue surged 53%, and its fourth-quarter revenue spiked 61% from the year-ago period.

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Young couple in kitchen looking at computer about to make online purchase with credit card

13. PayPal

As the use of digital payments surges around the world, companies like PayPal (NASDAQ: PYPL) are poised to capitalize on this growing need. Shares of the company have skyrocketed from around $100 last April to $260 at the time of this writing, and are now situated at a lofty 75 times trailing earnings.

Based on PayPal’s impressive history of growth, strong balance sheet, and continued ability to expand its market share in the online payments world over the coming decades, its current share price seems justified.

PayPal finished out 2020 on a distinctly high note. It reported that fourth-quarter total payment volume on its platform grew 36% from the year-ago period, while net revenue rose 23% and net new active accounts shot up 72%. As for the company’s full-year financial performance, net revenue increased 22% and total payment volume spiked 31% in 2020, while net new active accounts achieved a whopping boost of 95% from 2019.

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14. Nike

With widespread closures of brick-and-mortar locations and the rise of popular e-commerce brands threatening the profits of an increasingly crowded retail space, many stocks in this sector have struggled to stay above water since the pandemic began. However, some companies with an established brand authority and presence in both traditional retail and digital sales environments have managed to buck these rising trends. Nike (NYSE: NKE) has been one of them.

Shares of Nike have risen by more than 50% over the past year. In the company’s fiscal 2020 (ended May 31), it reported a slim 4% decline in overall revenue, but a wave of online shopping during the pandemic drove a nearly 50% increase in digital sales.

Nike has continued to gain ground in its fiscal 2021. Although its revenue for the first quarter (ended Aug. 31) declined 1%, its top line rose 9% in the second quarter (ended Nov. 30) and 3% in the third quarter (ended Feb. 28). Digital sales during these three quarters also rose 82%, 84%, and 59%, respectively. The popularity of Nike’s products and the strength of its brand authority can help it continue to deliver compelling growth despite the changing retail space, which makes it a worthwhile play for long-term investors.

ALSO READ: 3 Robinhood Stocks You Can Buy and Hold Forever

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Hand holding phone over bar code reader to make digital payment

15. Square

Square (NYSE: SQ) has carved a unique niche for itself in the digital payments space with its proprietary Cash App. Square’s total gross profits for 2020 soared by an impressive 45%. And when you break down its gross profits by individual ecosystem, its Seller platform generated 8% gross profit growth in 2020, while gross profits from its Cash App platform surged 168%.

Shares of Square have jumped by about 330% over the trailing 12 months alone on the heels of the tech stock buying craze that has since cooled. However, the company’s products and services can continue to play an integral role in our increasingly digital world long after the pandemic has passed, which makes the stock an appealing buy for long-term growth investors.

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

Businessman looking at tablet and newspaper

Investing for the long term

The 15 stocks on this list have something to offer every type of investor, from the risk-averse to the more risk-tolerant. No matter your personal investing style, the best way to maximize and maintain optimal stock returns is to invest with a long-term strategy. Not only is long-term investing the single most effective means of building stock market wealth, but this strategy is also key to help you achieve and maintain meaningful portfolio growth in all types of market environments.

Rachel Warren has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, 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. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool owns shares of and recommends Amazon, Apple, Facebook, Microsoft, NVIDIA, Netflix, Nike, Palantir Technologies Inc., PayPal Holdings, Square, Starbucks, and Twitter. The Motley Fool recommends the following options: long January 2022 $1920.0 calls on Amazon, long January 2022 $75.0 calls on PayPal Holdings, long March 2023 $120.0 calls on Apple, short April 2021 $110.0 calls on Starbucks, short January 2022 $1940.0 calls on Amazon, and short March 2023 $130.0 calls on Apple. The Motley Fool has a disclosure policy.

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