The Robinhood trading platform has become very popular since last year, especially with Gen Z traders, due to its zero-commission trading services. It is currently one of the biggest trading platforms in the United States. The company’s total net revenues increased 131% year-over-year to $565 million in the second quarter of 2021. Also, Robinhood reported a 109% surge in monthly active users versus the same period last year to 21.3 million. .

Because most Robinhood users are millennials and Gen Z traders, the stocks traded or listed on this platform are considered popular.

Johnson & Johnson (JNJ), Walmart Inc. (WMT), and The Coca-Cola Company (KO) are currently on the Robinhood top 100 list. Considering their dominant market shares and strong fundamentals, we think these stocks could be solid additions to one’s portfolio now.

Johnson & Johnson (JNJ)

JNJ is an established pharma company that researches, develops, manufactures, and sells a range of healthcare products. The New Brunswick, N.J., company operates through three segments: Consumer; Pharmaceutical; and Medical Devices. JNJ is ranked #67 in the Robinhood top 100 stocks.

On September 13, JNJ unveiled data for its Ebola Vaccine Regimen which demonstrated robust and durable immune response in adults and children. If approved, this vaccine should elevate the company’s long-standing position in the industry.

On July 30, Janssen Pharmaceutical Companies of JNJ announced  U.S. Food and Drug Administration (FDA) approval of its UPTRAVI® (selexipag) injection for intravenous (IV) use for the treatment of pulmonary arterial hypertension. This marks a landmark achievement for the company and should significantly contribute to its revenues in the coming quarters.

JNJ’s reported sales increased 27.1% year-over-year to $23.31 billion in its  fiscal second quarter, ended July 4. Its gross profit stood at $15.73 billion, up 33.8% from the same period last year. Its adjusted net earnings grew 49% from the year-ago value to $6.63 billion. And the company’s adjusted EPS increased 48.5% year-over-year to $2.48.

The Street expects JNJ’s revenues to increase 14.3% year-over-year to $94.37 billion in the current year. Its $9.66 consensus EPS estimate for the current  year indicates a 20.3% rise from the last year. In addition, JNJ surpassed the Street’s EPS estimates in each of the trailing four quarters.

JNJ has gained 5.1% in price year-to-date. The stock has gained 11.1% over the past year to close yesterday’s trading session at $165.22.

JNJ’s solid growth prospects are reflected in its POWR Ratings. JNJ has an overall A rating, which equates to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

The stock has an A grade for Growth and Stability, and a B grade for Value and Quality. It is ranked #2 among the 216 stocks in the Medical – Pharmaceuticals industry.

Click here to get additional JNJ ratings for Momentum and Sentiment.

Click here to checkout our Healthcare Sector Report for 2021

Walmart Inc. (WMT)

WMT in Bentonville, Arkansas is the largest retailer globally, operating in 24 countries and e-commerce websites offering a wide range of daily needs items. The company operates through three segments: Walmart U.S.; Walmart International; and Sam’s Club. WMT is ranked #8 in the Robinhood top 100 stocks.

On August 24, WMT announced a new line of business—Walmart GoLoca—that extends its expertise in delivering goods to customers and businesses. This is in line with the company’s strategy of diversifying  its revenue streams and profit pools.

On July 14, WMT partnered with Symbotic to implement an industry-leading supply chain automation system. Through this partnership, the company aims to optimize the process end-to-end to address the evolving customer habits now and in the future.

For the fiscal second quarter, ended July 31, WMT’s total revenues increased 2.4% year-over-year to $141.05 billion. Its net sales grew 2.2% from its year-ago value to $139.87 billion, while its operating income improved 21.4% year-over-year to $7.35 billion. Also, for the six months ended July 31, its cash and cash equivalents balance rose 35% from the same period last year to $22.88 billion.

A $565.55 billion consensus revenue estimate for the current year indicates a 1.1% increase year-over-year. The Street expects the company’s EPS to rise 15.1% to $6.31 in the current  year. Furthermore,  WMT has a notable earnings surprise history; it beat Street EPS estimates in three of the trailing four quarters.

WMT has gained 5.2% in price over the past year and 8.3% over the past six months.

WMT has an overall B rating,  translating to Buy in our proprietary POWR Ratings system. The stock also has an A grade for Stability, and a grade B for Value, Sentiment, and Quality. O 41 stocks in the A-rated Grocery/Big Box Retailers industry, WMT is ranked #6.

Beyond what we’ve stated above, we have also rated WMT for Momentum and Growth. Click here to view all WMT ratings.

Click here to checkout our Retail Industry Report for 2021

The Coca-Cola Company (KO)

Atlanta-based KO manufactures, markets, and sells various non-alcoholic beverages worldwide. The company provides sparkling soft drinks, water, enhanced water, sports drinks, juice, dairy, plant-based beverages, tea and coffee, and energy drinks. KO is ranked #49 in the Robinhood top 100 stocks.

On July 14, KO declared a dividend of 42 cents per common share. The dividend is payable October 1, 2021, to shareowners of record of the company as of the close of business on September 15, 2021.

KO’s net operating revenues increased 42% year-over-year to $10.13 billion in its fiscal second quarter, ended July 2. The revenue growth can be attributed to the ongoing recovery in markets where coronavirus-related uncertainty is abating. Its gross profit grew 53% from its  year-ago value to $6.34 billion, while its operating income improved 52% year-over-year to $3.02 billion. The company’s EPS increased 48% year-over-year to $0.61.

Analysts expect KO’s revenues to increase 13.4% year-over-year to $9.80 billion in the current quarter, ending September 30, 2021. A $0.58consensus EPS estimate for the current  quarter represents  a 5.5% rise from the same period last year. Also, KO surpassed the Street’s EPS estimates in each of the trailing four quarters.

Over the past six months, KO gained 9.5% in price to close yesterday’s trading session at $55.35.

It is no surprise that KO has an overall rating of B, which equates to Buy in our proprietary POWR Ratings system. The stock also has a B grade for Growth, Stability, Sentiment, and Quality. Among the 38 stocks in the B-rated Beverages industry, KO is ranked #11.

To see additional KO ratings for Value and Momentum, click here.

JNJ shares were trading at $164.02 per share on Friday afternoon, down $1.20 (-0.73%). Year-to-date, JNJ has gained 6.15%, versus a 18.99% rise in the benchmark S&P 500 index during the same period.

About the Author: Subhasree Kar

Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...

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