3 best Robinhood stocks Wall Street loves

Historically, retail investors have rarely been powerful enough to have a major impact on stock prices. But technology has changed that dynamic by providing powerful new tools including social media and a user-friendly trading app. Robin Hood (NASDAQ: HOOD).

Now millions of these investors are banding together to influence the trajectories of their favorite stocks, even if at times for no good reason, taking Wall Street on the wrong foot on more than one occasion. But according to the list of the most popular stocks on Robinhood, retail investors are still buying quality growth companies that are highly recommended by many analysts.

When two powerful forces buy the same stock, it can be rewarding to follow the herd. Here are three companies that are getting a lot of love from investors on Robinhood and Wall Street.

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Advanced micro-systems

Advanced micro-systems (NASDAQ: AMD) manufactures some of the most popular computer processors in the world, but these products have been nearly inaccessible to many consumers recently as continued supply shortages drive prices skyrocketing. The pandemic is the culprit as it continues to disrupt production facilities around the world, but it hasn’t shaken investor confidence in the stock.

Ranking the top 100 AMD Robinhood

Wall Street Consensus Score

7

Overweight

Data source: Robinhood, The The Wall Street Journal.

AMD stock has risen by around 1,700% over the past five years and continues to reach new highs in 2021.

On July 27, the company announced its second quarter results with a 99% year-over-year increase in revenue, in addition to announcing an exciting new deal with You’re here. Tesla’s Model S and X dashboard infotainment systems will now be powered by AMD Ryzen processors as demand continues to grow for advanced computing power in the automotive world.

For five consecutive quarters, AMD has increased its revenue share in the computer and graphics industry, in part thanks to higher average selling prices, indicating that customers are willing to pay more for the company’s products. It has seen particularly strong demand for its high-end graphics products, both from the consumer side and from data centers.

New deals with Tesla also highlight AMD’s attractive potential in much larger industries.

Analysts expect the company to generate earnings per share of $ 2.49 for fiscal 2021, giving the stock a price-earnings multiple of 42. But with its impressive momentum and new opportunities promising, today’s share price could look like a bargain for long-term investors.

Two people standing in a data center with a laptop, analyzing a digital screen

Image source: Getty Images

Microsoft

Another Robinhood action that Wall Street also likes is Microsoft (NASDAQ: MSFT). The maker of the Windows operating system and Microsoft Office software is a household name that many of us interact with every day. It is now the second-largest company in the world with a market cap of $ 2.23 trillion, and investors have reaped big profits since the start of the year, with the stock gaining 33%.

Top 100 Microsoft Robinhood Ranking

Wall Street Consensus Score

2

To buy

Data source: Robinhood, The Wall Street Journal.

Among Robinhood investors, Microsoft is beaten only by Producers of sundials, a controversial marijuana company that is unlikely to stay ahead for long given its recent volatility.

And there isn’t a single analyst on Wall Street with a sell note on Microsoft.

The company operates an incredibly diverse portfolio of businesses, but most notable is its intelligent cloud computing segment driven by the Azure platform. More than 95% of Fortune 500 companies now use Azure, which delivered 51% revenue growth in the last fiscal fourth quarter as it continues to compete with the industry leader. Amazon Web services.

Then there is the growing hardware presence of Microsoft. Its Surface line of tablets and laptops accounted for $ 1.38 billion in tax revenue in the fourth quarter (although this was down from $ 2.04 billion in the second quarter as economic reopenings force companies to reopen them. workers to spend less on their home office). The Xbox gaming platform suffered a similar fate after it exploded during the Home Economy.

Looking at the big picture, Microsoft just generated $ 61.3 billion in net income for fiscal 2021, which translates to $ 8.05 in earnings per share. It’s a very profitable company, and with steady growth forecast among Wall Street analysts, it’s hard to find a reason not to own this stock.

Happy family sitting on the sofa looking at a tablet

Image source: Getty Images

Apple

It is the most recognizable consumer brand on the planet, according to Forbes, its popularity with the investment community should therefore come as no surprise. Apple (NASDAQ: AAPL) manufactures the iPhone and Mac line of personal computers, but the growth of its digital services such as Apple Music has really impressed investors in recent years.

Apple Robinhood Top 100 Ranking

Wall Street Consensus Score

15

Overweight

Data source: Robinhood, The Wall Street Journal.

Apple shareholders are continually rewarded in the short and long term with a 15% year-to-date fueling the nearly 500% gain over the past five years. It is now the largest company in the world with a market capitalization of $ 2.49 trillion.

The company is perfectly positioned to benefit from the emerging 5G upgrade cycle as the company rolled out its first 5G-capable iPhones in late 2020. Despite the pandemic, new product releases have prompted Apple to report a figure of record business of $ 111.4 billion for the quarter ended in December. 26, 2020. The global rollout of 5G is underway, and as it becomes more important, new software services and mobile applications will present additional revenue opportunities. And Apple is expected to unveil its latest 5G device on September 14.

The company recently decided to bundle its consumer service offerings under a single subscription option called Apple One. It includes six of the company’s digital services, including Apple Music, Apple TV, and iCloud. The services segment accounts for 18% of total revenue, but its high gross margin – over 69% – makes it a significant contributor to profitability, so investors pay close attention to its performance.

Analysts don’t expect strong near-term growth for Apple. But owning this tech giant can benefit an investment portfolio in other ways, as its strong balance sheet protects it against stock market volatility. There are few stocks with a better risk-return proposition than Apple.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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Margie D. Carlisle

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