In this article, we will discuss the 11 best Robinhood stocks under $20. If you want to see more stocks in this selection, go to the 5 Best Robinhood Stocks Under $20.
Robinhood Markets, Inc. (NASDAQ:HOOD) is a Menlo Park, California-based digital trading platform popular amongst young investors. The median age of users on the trading platform is only 31 years. According to Statista, the platform had 22.9 million users as of Q2 2022. During the peak of the COVID-19 pandemic, the platform gained a lot of attention as it provided traders an opportunity to trade without paying any commission on their trades. The platform was used to drive the frenzy behind the “meme” stocks that resulted in humongous short squeezes. During the bull market of 2021, traders on Robinhood earned healthy returns, attracting more users to the platform.
The broader market has come under pressure since March 2022 due to concerns related to global uncertainty following the start of the conflict between Russia and Ukraine. This triggered inflation due to rising commodity prices, which caused the US Federal Reserve to increase benchmark interest rates. However, the broader market has started to show signs of resilience as key benchmark indexes have begun to bounce back from their lows for this year. The market had already factored in the fourth interest rate hike of 75 basis points announced by the US Federal Reserve on November 2. This takes the benchmark interest rate to a range of 3.75% to 4%, which is a 14-year high. With markets gaining momentum, retail investors are increasingly turning to platforms like Robinhood Markets to build diversified portfolios that can act as a hedge against inflationary pressures. Some of the popular stocks on Robinhood Markets include Ford Motor Company (NYSE:F), Energy Transfer LP (NYSE:ET), and Kinder Morgan, Inc. (NYSE:KMI).
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Our Methodology
For this article, we picked the most popular stocks on Robinhood that are priced under $20. We have gone through the growth outlook and business fundamentals for these companies. These stocks are expected to provide significant upside potential and generate healthy returns for shareholders in the long run. We have also discussed the analyst ratings. The stocks have been ranked according to the level of hedge fund ownership as of Q3 2022. All the stocks shortlisted are trading under $20 as of November 21.
11 Best Robinhood Stocks Under $20
11. Agiliti, Inc. (NYSE:AGTI)
Number of Hedge Fund Holders: 7
Agiliti, Inc. (NYSE:AGTI) is a Minneapolis, Minnesota-based provider of medical equipment management founded in 1939. The company has more than 250,000 medical devices deployed across the US and serves over 9,000 customers belonging to public and private healthcare facilities and device manufacturers.
Agiliti, Inc. (NYSE:AGTI) is still experiencing the tailwind of COVID-19-related revenue due to excess utilization of its fleet as compared to the pre-COVID-19 levels. Drew Ranieri at Morgan Stanley maintained an Overweight rating on Agiliti, Inc. (NYSE:AGTI) with a target price of $20 in an update issued to investors on October 11. The target price reflects a potential upside of 15% from the closing price as of November 21.
In its Q3 2022 results, Agiliti, Inc. (NYSE:AGTI) revealed that it has a significant backlog of new, sizable contracts in addition to the regular high volume of smaller business orders. Furthermore, in its eighty-plus-year history, Agiliti, Inc. (NYSE:AGTI) signed the highest number of contracts with seven and eight-figure yearly values during the third quarter. The company’s strong expansionary strategy makes it one of the best Robinhood stocks to invest in.
Sectoral Asset Management increased its stake in Agiliti, Inc. (NYSE:AGTI) by 26% during the third quarter of the year.
10. Prudential plc (NYSE:PUK)
Number of Hedge Fund Holders: 9
Prudential plc (NYSE:PUK) is a London, UK-based provider of life and health insurance along with asset management services. The firm’s operations are primarily focused on the developing and emerging markets of Asia and Africa.
In October, Prudential plc (NYSE:PUK) revealed a strategic partnership with the tech giant Google that would focus on increasing health and financial inclusion for communities located in Asia and Africa. Prudential plc (NYSE:PUK) intends to leverage the data capabilities of the Google ecosystem. On September 23, JPMorgan increased the target price for Prudential plc (NYSE:PUK) from $31.51 per share to $33.11 and maintained an Overweight rating on the stock. Each ADR of Prudential plc listed on the NYSE represents two ordinary shares.
Experts believe that Prudential plc (NYSE:PUK) will benefit due to its exposure in the Asian market, which is a secular growth market for life insurance due to low penetration and unmet demand. Furthermore, the Asian economies are doing relatively well compared to the economies of the other regions. The demographic is favorable in the region to sell operations through quality agency models.
9. Cushman & Wakefield plc (NYSE:CWK)
Number of Hedge Fund Holders: 21
Cushman & Wakefield plc (NYSE:CWK) is a Chicago, Illinois-based commercial real estate firm that is one of the biggest players in its industry. The company has a presence in 60 countries and a team of 50,000 members.
Cushman & Wakefield plc (NYSE:CWK) took over Burbage Realty in August 2022 to stimulate growth by gaining exposure in the logistics and industrial segment in the UK through the acquisition. According to a research report issued by Allianz Real Estate, the logistics and industrial real estate segment have a bright outlook due to the increased requirement for e-commerce fulfillment locations. These locations are expected to require three times more space than traditional retail setups due to the scale of their business. Meanwhile, Dallas, Texas-based commercial real estate firm CBRE Group, Inc. (NYSE:CBRE) anticipates a demand of 200 million square feet of space for e-commerce fulfillment centers between 2022 and 2026.
Furthermore, in Q3 2022, Cushman & Wakefield plc (NYSE:CWK) reported an increase of 16% in leasing revenue compared to the same period last year. Revenue from leasing fees increased 12% over Q3 of 2019 and surpassed the pre-pandemic levels.
Vulcan Value Partners shared its stance on Cushman & Wakefield plc (NYSE:CWK) in its Q3 2022 investor letter. Here’s what the firm said:
“Cushman & Wakefield plc (NYSE:CWK) had good operating results in the second quarter but was a material detractor. Company management did not increase their guidance for the year, suggesting the possibility of a weak second half, and the market may be worried about that possibility. We expect economic conditions to be more challenging as we enter 2023, and we are taking a cautious approach to our valuation. The company recently authorized a share buyback for 10% of its outstanding shares, which we think is both a positive sign and an intelligent capital allocation decision. Overall, we think the company is performing well, and its results are in line with our expectations.”
8. Harmonic Inc. (NASDAQ:HLIT)
Number of Hedge Fund Holders: 26
Harmonic Inc. (NASDAQ:HLIT) is a San Jose, California-based provider of video streaming solutions for live streaming and other forms of content delivery for the TV and the internet.
On November 1, Simon Leopold at Raymond James increased the price target on Harmonic Inc. (NASDAQ:HLIT) from $13 to $18 and maintained an Outperform rating on the stock. Leopold highlighted that the company reported a strong outperformance compared to the consensus estimate for Q3 2022. Harmonic Inc. (NASDAQ:HLIT) has given a below-expected revenue forecast for Q4 2022, but the EPS forecast at the midpoints is higher than the analysts’ forecast.
During Q3, Harmonic Inc. (NASDAQ:HLIT) benefited from additional distributed access architecture (DAA) and fiber-to-the-home (FTTH) Tier 1 wins, resulting in an expansion in margins. Furthermore, Leopold appreciated the confidence of the management in achieving its 2025 targets which were discussed at the analyst meeting in September 2022.
Trigran Investments raised its investment in Harmonic Inc. (NASDAQ:HLIT) by 13% during Q3 2022.
7. F.N.B. Corporation (NYSE:FNB)
Number of Hedge Fund Holders: 23
F.N.B. Corporation (NYSE:FNB) is a Pittsburgh, Pennsylvania-based diversified financial services company that is the parent company of First National Bank. The company is a provider of commercial banking, consumer banking, and wealth management solutions.
On October 20, Brandon King at Truist increased the target price for F.N.B. Corporation (NYSE:FNB) from $14 to $16 and reiterated a Buy rating on the stock following the earnings beat of Q3 2022. The analyst highlighted the expansion in the company’s net interest margin along with solid growth reflected in the balance sheet. Analysts also expect F.N.B. Corporation (NYSE:FNB) to experience lower funding costs compared to its competitors. Furthermore, F.N.B. Corporation (NYSE:FNB) has worked on controlling its expenses, which is expected to help the company deliver strong growth in pre-provision revenue in FY23, making F.N.B. Corporation (NYSE:FNB) one of the best Robinhood stocks to buy.
F.N.B. Corporation (NYSE:FNB) was held by 23 hedge funds at the end of Q3 2022.
6. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 24
Nokia Oyj (NYSE:NOK) is an Espoo, Finland-based consumer electronics, information technology, and telecommunications company. The company is at the sixth position on our list of the ten best Robinhood stocks under $20.
Nokia Oyj (NYSE:NOK) is in the middle of a turnaround strategy as the core segments of the business are experiencing top-line growth and expansion of bottom-line margins. Analysts have a positive outlook on Nokia Oyj (NYSE:NOK) due to its strong strategic plans. During Q3 2022, the company’s Mobile Networks division reported stellar growth in revenue. The Mobile Network segment is expected to experience tailwinds due to the expansion of 5G services across the world. Based on these developments, Alexander Peterc at Societe Generale gave Nokia Oyj (NYSE:NOK) stock a target price of $5.31 with a Buy rating on October 25.
Citadel Investment Group raised its stake in Nokia Oyj (NYSE:NOK) by over 350% during the third quarter of the year.
In addition to Nokia Oyj (NYSE:NOK), Ford Motor Company (NYSE:F), Energy Transfer LP (NYSE:ET), and Kinder Morgan, Inc. (NYSE:KMI) are also attracting hedge fund investment as of Q3 2022.
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Disclose. None. 11 Best Robinhood Stocks Under $20 is originally published on Insider Monkey.