Top 8 Robinhood Stocks This Month

Online investing app Robinhood was originally best known for leading the commission-free stock trading revolution until it arguably became better known for helping to foment the Reddit investor revolt against monied Wall Street interests.

Apptopia says Robinhood remains the most popular trading app worldwide in terms of downloads, far outstripping No. 2 app Webull. And as February prepares to move into March, here are the top eight Robinhood stocks for 2021, as ranked by the platform's leaderboard.

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Nokia (NYSE: NOK) was one of those stocks that got caught up in the "Reddit rally" and saw its shares spike alongside those of GameStop and Bed Bath & Beyond. It was a highly shorted stock, and it didn't take much to get the share price moving higher to effect a short squeeze.

Like with those video game and home goods retailers, there were good reasons to bet against the telecom equipment and services provider. It's been losing market share as it failed to move quickly enough to invest in its 5G networks, forcing it to suspend its dividend to free up cash to do so.

It forecasts revenue growth to be lower this year than last and profit margins to narrow further. There's also no plan for bringing back the dividend.

The bad business decisions made underscore why the stock gains didn't last, and it now trades about where it did before the rally lifted the stock.

ALSO READ: Robinhood Is Seeing Insane Growth: 3 Great Stocks for Beginning Investors

General Electric (NYSE: GE) is decidedly not a meme stock, but even Robinhood investors understand the conglomerate's more narrow focus on key critical sectors of healthcare, aviation, power, and renewable energy means it won't be as unwieldy of an investment as it once was, when its operations were more widespread.

Even so, GE is something of a turnaround story with the market looking for a recovery in equipment orders in its healthcare unit, a rebound in the aviation sector generally, and an ability to generate strong free cash flows from its power and renewable energy divisions.

The stock has more than doubled from its 52-week lows, and Robinhood traders seem to want to ride the recovery of this global megacorporation to new heights.

The Chinese electric vehicle (EV) market is heating up to a fever pitch, with NIO (NYSE: NIO) leading the way. It delivered 7,225 EVs last month, a 3% increase from December and a 352% jump year over year.

It's another record for the carmaker and builds on the near-44,000 vehicles it delivered for all of 2020 while also expanding its opportunities to bring more customers into the fold by widening its product selection. A new luxury sedan, for example, with a bigger battery pack and greater range, will be more attractive to more EV buyers.

Some analysts think China could sell as many as 20 million EVs by 2040, offering incredible potential to those car companies like NIO that can outlast the homegrown competition from the likes of Xpeng and Li Auto.

EV makers like NIO may spur more interest from stock traders because it is new and exciting, but old line manufacturers like Ford (NYSE: F) maintain they will not cede any ground to the upstarts in electric cars.

Ford says it will spend upward of $29 billion in EVs over the next five years, but focusing on niches where it already has a demonstrated competitive advantage, such as in pickup trucks and transit vans. And though its turning its Mustang muscle car into a nameplate platform struck some as odd, the all-electric Mustang Mach-E crossover turned a lot of heads and convinced other carmakers they could do the same thing.

General Motors is now mulling whether to use its Corvette as a nameplate family in the EV market, with the first model possibly being a crossover SUV.

Ford is another stock whose turnaround story has been playing out successfully over the past year.

ALSO READ: Here's My Top Robinhood Stock to Buy Right Now

AMC Entertainment (NYSE: AMC) was right up there with GameStop as the progenitor of the meme stock rally, but it was also heavily shorted because the fundamentals of the theater business are no longer there and the cinema owner itself was saying it might go bankrupt.

Of course, timing is everything, and though AMC was able to raise $1 billion as traders squeezed short-sellers and its shares soared, the theater operator still left nearly $1 billion more on the table by selling shares too early.

AMC certainly has enough money now to survive 2021, but the future remains murky because it still needs Hollywood to come back strong with some blockbuster movies to put people in the seats. With movie studios juicing their streaming services subscriptions by releasing films to theaters on the same day they are available to stream, cinema stocks like AMC will still see the knees cut out from under demand.

This is a drama that still has a long way to go before it's fully played out.

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.

After the GameStop rally subsided and silver quickly tarnished, the next sector Redditors tried to rally was marijuana stocks, and Sundial Growers (NASDAQ: SNDL) was there to soar higher.

Yet unlike some of the other businesses that came and went, investors can argue there is at least a foundational basis for hope for the pot grower. Sundial has a better than 3% share of the Canadian marijuana market, giving it room to steal share and grow. Like some of the other better-known names in the industry, including Canopy Growth and Tilray, business has been constrained because of bureaucratic bungling in getting the regulatory environment right ahead of legalization.

That is all working itself out now, and there could be further opportunities if the U.S. follows suit, but Sundial Growers still needs to prove it can grow its marijuana business where it's able and stop the hemorrhaging of revenue it suffered in 2020.

Obviously any discussion of electric vehicles must include Tesla (NASDAQ: TSLA) as it is planting roots in all the important markets of the world. Beyond the U.S. and China, where it is the straw that stirs the drink and forces every major automaker to prioritize EVs, Tesla is now ready to begin investing in India, where it may build a new factory in Bangalore, though significant hurdles first need to be scaled.

Growth is expected to accelerate this year, with deliveries rising 50% in 2021 compared with the 36% gain last year. Yet such growth does not come cheap, and at a stock price of over $800 a share, the EV maker trades at astronomical valuations.

Some analysts see its current level as just a stepping-stone to further value expansion, and one has about 50% more upside in Tesla's shares. That may take additional innovation to get there, but Robinhood investors seem willing to go along for the ride.

ALSO READ: 5 Robinhood Stocks to Buy and Hold Forever

Apple (NASDAQ: AAPL) is the leader on the list of top Robinhood stocks this month, and that's not so surprising. The tech giant continues to defy gravity because of its impact on consumers globally. There are over 1.65 billion Apple devices in people's hands worldwide, and though analysts always seem to expect the popularity of the iPhone or iPad to wane, Apple manages to far exceed forecasts.

It remains one of the world's most valuable brands and has a fan base of die-hard loyalists who return to its products again and again. It also has a modest, but rapidly growing, dividend. And though Apple may not be able to generate the outsize returns it has in the past, it has become a steady engine of growth at a reasonable valuation for its size and leadership position.

A $2.2 trillion company will be hard-pressed to double and triple in value, but Robinhood investors see the sense in owning a part of the most valuable company on the market that rarely fails to deliver on its promise of innovation and design expertise.

There are many places Apple will be going in the future -- the prospects for an eventual Apple car seem high -- and investors want to be a part of that.

Investors don't need to enlist in an uprising against the financial elite to profit. Buying into good businesses with products and services tapping into long-term growth trends should provide all the value an investor needs, albeit without all the fanfare.

Most of the top eight Robinhood stocks here fit the bill just fine. And because the trading app has further democratized the investing process, it brings the potential for greater generational wealth creation to even more people.

So long as investors maintain their focus on the fundamentals of a company and don't just buy into what's trendy today -- including those companies on this list -- they'll do all right in the long run.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple and Tesla. The Motley Fool has a disclosure policy.