The Robinhood platform was built with the aim that everyone should have access to the financial markets, not just the wealthy. The platform has become synonymous with the Robinhood100 – a list of popular stocks on the app. Commission-free trades, no account minimums, and an easy-to-use mobile app are the key features of the Robinhood platform.
While it is sometimes considered as a platform full of undisciplined investors with its users making risky financial decisions, some stocks possess both popularity and underlying financial strength, and thus, are worth the risk.
Amazon.com, Inc. (AMZN), Alibaba Group Holding Ltd (BABA), Sony Corporation (SNE), and Plug Power, Inc. (PLUG) are four such Robinhood-listed stocks that are well-positioned to maintain their momentum in the months to come.
Amazon.com, Inc. (AMZN)
The world’s largest online retailer AMZN needs no introduction. The company has truly become “an everything store” as envisioned by founder and CEO, Jeff Bezos. Amazon Web Service (AWS) has been dominating the cloud computing industry and the company also earns revenues through subscriptions from Amazon Music and Prime Video.
AMZN’s prime day held this month saw sales increase by nearly 60% from last year to $3.5 billion. The pandemic influencing customer’s buying choices, the top-selling categories during the prime day included Bedding, Wireless Accessories, Nutrition & Wellness, Arts, Crafts & Sewing, and Health Care. AMZN’s net sales increased 40% year-over-year to $88.9 billion for the second quarter ended June 2020.
Analysts expect AMZN’s revenue to increase 32% for the third quarter ended September 2020 and 18.3% next year. The company’s EPS is expected to increase 71.4% for the quarter, 40% next year, and at a rate of over 36% per annum over the next five years.
The stock has gained nearly 90% since hitting its 52-week low of $1,626.03 in mid-March. AMZN’s EPS for the fiscal second quarter was $10.3, which surpassed the consensus estimate by 605.5%. Undoubtedly, exerting dominance over the online retail sector and cloud computing among other domains, AMZN looks well-positioned for steady long-term growth.
How does AMZN stack up for the POWR Ratings?
A for Trade Grade
B for Buy & Hold Grade
B for Peer Grade
B for Industry Rank
B for Overall POWR Rating
The stock is also ranked #9 out of 58 stocks in the Internet industry.
Alibaba Group Holding Ltd (BABA)
BABA is often known as “the Amazon of China,” and is a leading platform for global wholesale trade operating mainly in China. The company is primarily divided into three core businesses — Alibaba which is a Business-to-Business (B2B) website, Taobao which is a Consumers-to-Consumers (C2C) website, and Tmall, which is a marketplace geared mainly towards China’s middle class, focused on large, multinational brands. All eyes are on its financial affiliate Ant Group Inc., which is preparing to go public.
BABA’s revenue increased 34% year-over-year to $21.7 billion for the first quarter ended June 2020. Alibaba Cloud was the largest public cloud service provider in China for the fourth quarter and fiscal year ended March 31, 2020, and the cloud computing revenue gained 59% year-over-year to $1.7 billion for the first quarter ended June 2020.
Analysts expect BABA’s revenue to increase 56.1% for the second quarter ended September 2020 and 25.9% next year. The company’s EPS is expected to increase by 16.2% for the quarter, 25.6% next year, and at a rate of 3.5% per annum over the next five years.
The stock is expected to keep soaring despite gaining nearly 44% year-to-date. BABA has an impressive earnings surprise history with the company beating consensus EPS estimates in each of the trailing four quarters. With the economy reviving in China, BABA has been expanding at a much faster rate. Yesterday BABA acquired a controlling stake in Sun Art. It is currently holding approximately 72% stake in Sun Art. Moreover, the company recently took a 6.1% stake in travel retailer Dufry.
BABA’s POWR Ratings reflect this promising outlook. It has an overall rating of “Strong Buy” with an “A” for Trade Grade, Peer Grade, Buy & Hold Grade, and Industry Rank. Among the 115 stocks in the China industry, it’s ranked #1. It simply can’t get better than this.
Sony Corporation (SNE)
Founded in 1946 and headquartered in Tokyo, Japan, SNE designs, develops, produces, and sells electronic equipment, instruments, and devices worldwide. Branching out into Games and Network Services (G&NS), Music, Pictures, Electronic Products and Solutions (EP&S), Imaging and Sensing Solutions (I&SS), Financial Services, and others over the years, SNE completed 50 years on the NYSE on September 17th.
PlayStations, the pioneer of modern gaming consoles, specifically the gaming segment has been the main revenue driver for SNE amid the pandemic. This segment is expected to witness further revenue growth in the coming months. In SNE’s first fiscal quarter ended June 2020 sales from G&NS increased 32% year-over-year and the company’s consolidated sales increased 2% year-over-year.
Analysts expect SNE’s revenue to increase by 4.7% for the third quarter ending December 2020 and 7.2% for the financial year 2021. The company’s EPS is expected to increase by 15.5% next year and at a rate of 5.2% per annum in the next five years. SNE’s earnings surprise history looks impressive with the company missing the consensus estimate in just one of the trailing four quarters.
Ahead of the electronic giant’s upcoming earnings report, PlayStation enthusiasts are eagerly waiting for November 12th when the PlayStation 5 will be launched. SNE has made several profitable strategic acquisitions. It acquired Nevion last month to further enhance its portfolio, provide end-to-end IP and cloud-based production solutions for broadcasting and other applications. The stock gained more than 41% since hitting its 52-week low in mid-March.
It’s no surprise that SNE is rated a “Buy” in our POWR Ratings system, with a grade of “B” in Buy & Hold Grade, and Peer Grade. In the 20-stocks Entertainment – Media Producers industry, it is ranked #1.
Plug Power, Inc. (PLUG)
PLUG is an alternative energy technology provider and aims to create a clean hydrogen economy. The company is the leading provider of comprehensive Hydrogen Fuel Cell (HFC) turnkey solutions and created the first commercially viable market for the same. PLUG’s vertically-integrated GenKey solution provides services to customers such as AMZN, BMW, The Southern Company (SO), Carrefour, and Walmart (WMT).
PLUG achieved the highest second-quarter gross billings in its history to $72.4 million, increasing 24% year-over-year. It also issued the first-ever convertible green bond in the United States in the same second quarter ended June 2020. Analysts expect PLUG’s revenue to increase 80.4% for the third quarter ended September 2020 and 35.6% next year. The company’s EPS is expected to increase by 22.2% in the current year, 17.9% next year, and at a rate of 25% per annum in the next five years.
The stock gained almost 400% since hitting its 52-week low in mid-March. Last month, the company announced an agreement to source 100% renewable energy supplies from Brookfield Renewable Partners L.P. (BEP) to fully energize Plug Power’s planned green hydrogen production plant. PLUG partnered with Apex Clean Energy to accelerate the shift to clean energy and also completed acquisitions of United Hydrogen and Giner ELX to further accelerate the green hydrogen strategy. The company sees hydrogen making profits by 2024.
PLUG’s strong fundamentals are reflected in its POWR Ratings, it has a “Buy” rating with an “A” in Trade Grade, and a “B” in Buy & Hold Grade, Peer Grade, and Industry Rank. Within the Industrial – Equipment industry, it’s ranked #7 out of 58 stocks.
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AMZN shares were unchanged in after-hours trading Tuesday. Year-to-date, AMZN has gained 74.10%, versus a 8.22% rise in the benchmark S&P 500 index during the same period.
About the Author: Manisha Chatterjee
Since she was young, Manisha has had a strong interest in the stock market. She majored in Economics in college and has a passion for writing, which has led to her career as a research analyst. More...
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