Check out the Robinhood 100 list, and you are sure to find plenty of overpriced investments tailor-made for newbie investors who will essentially hand over their money to more experienced investors. However, the fact that Robinhood attracts green investors does not mean you should completely ignore the Robinhood 100.
There are a handful of high-growth Robinhood stocks worthy of your attention. Growth is the name of the game as investors far and wide are willing to pay a high premium for investments that rapidly increase in value over time.
Below, we focus on four particularly intriguing high growth Robinhood stocks: Starbucks (SBUX), Square (SQ), Peloton Interactive (PTON), and Beyond Meat (BYND).
Starbucks (SBUX)
Make no secret about it; coffee, especially the incredibly tasty varieties made by SBUX, is quite the addictive, albeit legal, drug. SBUX coffee brewed in the corporations’ coffee houses and sold in supermarkets across the globe tastes significantly better than most other blends. A bonus for SBUX investors is the fact that the company is in the process of converting a large number of its coffee shops into grab-and-go and drive-thru-oriented places of business. It is now possible to order SBUX ahead of time, pre-pay from a phone or other web-connected device, walk into the location, grab your coffee in mere seconds, and walk right out of the door. In short, SBUX is making coffee as efficient as possible.
SBUX is branching out beyond regular coffee to Teavana Tea, bakery products, Seattle’s Best brand, and fresh juice made by its Evolution line. Perhaps most important is the makeup of SBUX’s customer base. Most SBUX customers are 40 and younger, meaning this corporate behemoth has the all-important young demographic in the fold for years to come.
Check out the SBUX POWR Ratings, and you will find “A” grades in the Industry Rank, Trade Grade, Peer Grade, and Buy & Hold Grade components. SBUX is ranked first out of 49 publicly traded companies in the Restaurants industry. Analysts have set a $94 price target on SBUX, meaning it should climb nearly 7% in the months ahead. SBUX has recovered most of its lost coronavirus sales as a result of its strategic pivot toward on-the-go sales.
Square (SQ)
Even if you have not heard of SQ, there is a good chance you do business with a company that relies on SQ for payment processing. SQ facilitates the transmission of digital payments with high-tech software and hardware. SQ’s services also enable the tracking and analysis of data related to digital payments.
SQ has “B” grades in the Peer Grade, Industry Rank, and Trade Grade POWR Rating components. The stock is ranked in the top 10 out of 232 publicly traded companies in the Financial Services (Enterprise) industry. Analysts anticipate SQ to rise to $174.41, meaning the stock has more than 9% upside potential. Out of 24 analysts who cover the stock, 16 recommend it as a Buy, six recommend it as a Hold, and two recommend selling.
SQ is perfectly positioned to benefit from the transition to a cashless society. An added bonus is the fact that SQ conducts business in the United States, the United Kingdom, Japan, Canada, and Australia, a group of countries that probably won’t be affected by potential geopolitical conflicts in the years ahead.
Peloton Interactive (PTON)
At-home fitness has quickly become socially normative in the age of COVID. Though some gyms have reopened, they are implementing social distancing and forcing members to wear masks. In short, it is much easier, safer, and more comfortable to exercise at home with a PTON Bike or Tread. PTON machines feature a built-in screen that makes it feel as though you are participating in a group exercise.
PTON has an “A” Industry Rank in the POWR Ratings and “B” grades in the Peer Grade and Trade Grade components. PTON is ranked 6th out of more than 30 stocks in the Consumer Goods industry. Analysts expect PTON to reach $122.14, meaning it has more than 10% upside potential.
Beyond Meat (BYND)
BYND is not a tech stock, yet it has the potential for exponential growth in the years to come. Do not be dismayed by the stock’s recent drop. Instead, view it as a buying opportunity.
BYND has a “B” grade in the Industry Rank POWR Rating component along with a top 10 ranking out of nearly 30 stocks in the Agriculture industry. BYND’s recent disappointing numbers sent the stock downward, yet it appears to have established a floor around $140.
Now that BYND has expanded to Chinese supermarkets, it is only a matter of time until the company moves out of the red and into the black. BYND is about 30% off from its 52-week high, meaning this is the optimal time to establish a position in this rapidly growing company.
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SBUX shares fell $0.01 (-0.01%) in after-hours trading Wednesday. Year-to-date, SBUX has gained 3.74%, versus a 8.27% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...
More Resources for the Stocks in this Article
Ticker | POWR Rating | Industry Rank | Rank in Industry |
SBUX | Get Rating | Get Rating | Get Rating |
SQ | Get Rating | Get Rating | Get Rating |
PTON | Get Rating | Get Rating | Get Rating |
BYND | Get Rating | Get Rating | Get Rating |