The Robinhood 100 list generally consists of stocks that are creating a lot of buzz among millennial investors. The Robinhood trading app gained popularity in 2020 when many new stock investors turned to the app while spending time at their homes, with limited income, during COVID-19 lockdowns.

Even though the Robinhood 100 list is more of an indicator of popularity, there are some Robinhood stocks that are also fundamentally strong. These companies have been focusing on upgrading their offerings to drive future growth. Some of them are  also reasonably priced currently and we think have significant potential for price gains.

Prospect Capital Corporation (PSEC), GoPro, Inc. (GPRO), Bionano Genomics, Inc. (BNGO), and Zomedica Pharmaceuticals Corporation (ZOM) are four such Robinhood stocks. They are trading at affordable prices despite possessing strong fundamentals. We expect these companies  to see growth in revenue and EPS in the coming months, which should translate into solid price appreciation.

Prospect Capital Corporation (PSEC)

PSEC  invests primarily in unsecured debt, equity, subordinated debt, and first and second lien secured loans. The company focuses on the U.S. middle market. PSEC’s stock has gained 23.6% over the past six months.

PSEC  recently invested $25 million in purchasing first lien senior secured floating rate notes that were issued by KM2 solutions. The company has also invested $29 million in  first lien senior secured floating rate notes that were issued by Thermal Production Solutions.

For the quarter ended September 30, 2020, the company realized gains of $2.8 million compared to a loss of $2.1 million during the same period last year. PSEC’s  income from affiliate investments gained 2980% during the same period. The company’s EPS is estimated to grow 1.6% in 2022 and at a rate of 5% per annum over the next five years.

How does PSEC stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

A for Peer Grade

B for Industry Rank

A for Overall POWR Rating

The stock is also ranked #6  of 43 stocks in the Private Equity industry.

GoPro, Inc. (GPRO)

GPRO is a market leader in the manufacturing, development, and marketing of cameras and related accessories. The company has worldwide operations. GPRO’s stock has returned 107.2% over the past year.

GPRO has launched a slew of new offerings on its GoPro Labs platform that include camera motion triggers, motion detection enhancements, and new exposure modes. The company  also recently launched the GoPro Player for Windows that allows users to edit  content.

For the quarter ended September 30, 2020, the company saw sequential growth in revenue of 109%. Its  subscriber base grew 35% during the same period.

GPRO’s revenue is estimated to increase 40.1% for the quarter ended March 31, 2021 and 18.9% in 2021. The company’s EPS is expected to climb  800% in 2021 and 10% per year over the next five years.

GPRO’s strong fundamentals are reflected in its POWR Ratings. It has a “Strong Buy” rating with an “A” for Trade Grade. It is ranked #18 of 52 stocks in the Technology – Hardware industry.

Bionano Genomics, Inc. (BNGO)

BNGO is involved in life sciences instrumentation in the genome analysis sector. The company’s primary product is its Saphyr system that allows researchers to accelerate the search for new therapeutic and diagnostic targets. BNGO’s stock price has increased 661.7% over the past year.

The company’s Saphyr system was recently used for the characterization of virus integration in the human genome. During the American Society of Human Genetics (ASHG) annual meeting, the company presented on the application of the Saphyr system in the detection of novel genetic variations that can cause cancer and other genetic diseases.

For the quarter ended September 30, 2020, the company saw an increase in total revenue of 86% sequentially.

BNGO’s revenue is expected to grow 217.5% for the quarter ended March 31, 2021 and 141.2% in 2021. The company’s EPS growth is expected to be 80% for the quarter ended March 2021 and 48.8% in 2021.

It is no surprise that BNGO has a “Buy” rating in our POWR Ratings systems with a grade of “A” in Trade Grade and Industry Rank. In the 64-stock Medical – Diagnostics/Research industry, BNGO is ranked #33.

Zomedica Pharmaceuticals Corporation (ZOM)

ZOM is involved in the research, development, and marketing of pharmaceutical products for canine, feline, and equine animals, and pets. The company has operations primarily in the U.S.  ZOM’s stock price has gained 260% over the past year.

The company is preparing for the launch of TRUFORMA, which is a point-of-care diagnostic platform for pets. The date of the launch has been set to March 30.

For the nine months ended September 30, 2020, the company’s research and development related expenses decreased 25% compared to the same period last year. Its  administrative and general expenses decreased 3% year-over-year.

It is no surprise that ZOM has a “Buy” in our POWR Ratings systems with a grade of “A” in Trade Grade and a “B” in Peer Grade and Industry Rank. In the 239-stock Medical – Pharmaceuticals industry, ZOM is ranked #74.

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PSEC shares were trading at $6.05 per share on Wednesday morning, down $0.02 (-0.33%). Year-to-date, PSEC has gained 11.83%, versus a 2.43% rise in the benchmark S&P 500 index during the same period.

About the Author: Aaryaman Aashind

Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...

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