The Robinhood 100, a list of the most popular stocks that Robinhood investors own, receives a lot of deserved attention. As of this month, there are more than 13 million active users of the free trading app.
There are a variety of stocks on this list: small-caps, mega-caps, biotechs, financials, auto manufacturers, Chinese companies, etc. Some of these stocks have performed well and some have not.
Therefore, investors should be selective when purchasing shares of companies on the Robinhood 100. Which is why today we’re going to highlight three “Buy Rated” companies on this list.
Using our proprietary POWR Ratings service, we recommend you consider adding Visa (V), Coca-Cola Company (KO), and General Motors Company (GM) to your portfolio for 2021.
V is a global electronic payments processor. Visa is also dabbling in the cryptocurrency game, working on its own crypto that could eventually play a role in replacing traditional currency.
Visa credit cards are particularly popular, yet the company does not bear the financial burden of unpaid credit card bills. Rather, it merely creates and issues the credit cards while the big banks handle the civil litigation and financial impact stemming from unpaid bills.
If you are on the fence as to whether Visa is deserving of its “Buy” rating, consider its POWR Rating components: An “A” grade in the Trade Grade component and “B” grades in the Peer Grade, Industry Rank and Buy & Hold grade components. V is ranked third of nearly 50 publicly traded companies in the Consumer Financial Services category.
When in doubt, turn to the analysts. The Wall Street experts are bullish on Visa, setting an average price target of $222.81. This is a fantastic stock for risk-averse investors, looking for a safe place to park their money as consumers embrace using electronic payments rather than cash.
Coca-Cola Company (KO)
Most people are surprised to find KO has captured over 40% of the beverage industry market share, outside of alcoholic beverages. KO is not resting on its laurels, instead, choosing to strategically expand its product base and consumer base. The company continues to roll out intriguing new beverages including energy drinks, sparkling water, healthy coffee alternatives, and sports drinks.
KO has an “A” grade in the POWR Rating Trade Grade component along with a “B” Peer Grade. KO is ranked third of 29 publicly traded companies in the Beverages category. Check out the analysts’ forecast for KO and you will find it is quite rosy. KO has an average price target of $54.60.
KO is all the more attractive considering it has a 3.31% dividend. Though KO sales are down sharply at restaurants due to the pandemic, consumer purchases have helped the stock rebound from its dramatic March selloff.
General Motors Company (GM)
GM accounts for nearly 20% of aggregate auto sales in the United States. This automobile monolith has been in business for more than a century. Though GM is no longer as dominant as it was in the past, the company’s stock appears to be somewhat of a safe haven amidst potential economic and market turmoil.
GM has superb POWR Ratings highlighted by an “A” in the Trade Grade component. GM also has “B” grades in the Industry Rank, Peer Grade and Buy & Hold Grade components. GM is ranked 11th of nearly 30 publicly traded Auto & Vehicle Manufacturers.
The top analysts insist GM is poised to reach $40.33, meaning the stock has 13% potential upside. This is a reasonable bullish outlook considering GM has a fairly low forward P/E ratio of 12.83.
GM is in the midst of converting its third auto plant to make electric vehicles. The conversion will cost the automaker a whopping $2 billion. If GM can snag a considerable portion of the ever-growing EV market share, it’s stock could see strong gains over the next decade.
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V shares were trading at $198.89 per share on Wednesday afternoon, up $1.19 (+0.60%). Year-to-date, V has gained 6.34%, versus a 8.29% 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...
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