In this article, we discuss the 12 best stocks to buy on Robinhood for beginners. If you want to skip our detailed analysis of these stocks, go directly to 5 Best Stocks To Buy on Robinhood for Beginners.
For a very long time, the United States stock market was the ultimate status symbol, with access to equity trading protected and policed by elite brokerage firms that charged hefty amounts to carry out trades. In recent years, with the advent of stock trading applications like Robinhood, owned by California-based Robinhood Markets, Inc. (NASDAQ:HOOD), stock trading is no longer a game for the rich. It is now accessible to people of all ages and backgrounds through commission-free trades.
Robinhood has made a brand name for itself that will be hard to dislodge. For example, the company claims that nearly 80% of new accounts on the platform come from people who sign up themselves, unprompted by advertisements, or through customer referrals. This is quite astonishing given the hundreds of millions big corporations tend to spend on marketing budgets. There are also downsides to this brand power, as the platform is routinely accused of bias by both veteran and retail investors, depending on the market situation.
For example, veteran investors accuse Robinhood of gamification of stocks, while retail investors are unhappy when the platform restricts trading in the most volatile meme stocks. Robinhood has emerged victorious despite lawsuits and fines, and remains one of the most popular stock trading apps on the market. Since a majority of users on the platform are first time investors, it is not often easy to select the best stocks for investment. Investing is an art that takes a lot of time and practice to perfect.
Some of the best stocks to buy on Robinhood for beginners include Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and The Walt Disney Company (NYSE:DIS). A closer look at the business of these firms demonstrates their competitive edge. Bob Iger, the CEO of The Walt Disney Company (NYSE:DIS), recently underlined during the fourth quarter earnings call that the firm had succeeded in tripling adjusted earnings per share year-over-year by merely restructuring to ensure greater efficiencies.
“Our results this quarter speak volumes about the underlying strength of our company and the remarkable amount of work we have accomplished this past year. Q4 adjusted earnings per share nearly tripled over the prior year. And all three of our businesses, entertainment, experiences, and sports, saw significant increases in fourth quarter operating income compared to Q4 of fiscal ’22.
The thorough restructuring of our company has enabled tremendous efficiencies, and we’re on track to achieve roughly $7.5 billion in cost reductions, which is approximately $2 billion more than we targeted earlier this year. Our new structure also enabled us to greatly enhance their effectiveness, particularly in streaming, where we’ve created a more unified, cohesive, and highly coordinated approach to marketing, pricing, and programming. This has helped us improve operating results of our combined streaming businesses by approximately $1.4 billion from fiscal 2022 to fiscal 2023. And we remain confident that we will achieve profitability in Q4 of fiscal 2024.”
Our Methodology
These were selected using the Robinhood Investor Index as well as research using third party tools to identify the most popular stocks on trading application Robinhood Markets, Inc. (NASDAQ:HOOD). The analyst ratings of each stock are also discussed to provide readers with some context for their investment choices. Hedge fund sentiment was included as a classifier as well. The hedge fund sentiment around each stock was calculated using the data of around 900 hedge funds tracked by Insider Monkey in the third quarter of 2023.
A graph plotting the trends and performance of stocks on the public equity markets.
Best Stocks To Buy on Robinhood for Beginners
12. Virgin Galactic Holdings, Inc. (NYSE:SPCE)
Number of Hedge Fund Holders: 8
Virgin Galactic Holdings, Inc. (NYSE:SPCE) focuses on the development, manufacture, and operation of spaceships and related technologies for conducting commercial human spaceflight and flying commercial research and development payloads into space. At the end of the third quarter of 2023, 8 hedge funds in the database of Insider Monkey held stakes worth $6.3 million in Virgin Galactic Holdings, Inc. (NYSE:SPCE), compared to 14 in the preceding quarter worth $11 million.
Just like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and The Walt Disney Company (NYSE:DIS), Virgin Galactic Holdings, Inc. (NYSE:SPCE) is one of the best stocks to buy on Robinhood for beginners.
11. GameStop Corp. (NYSE:GME)
Number of Hedge Fund Holders: 9
GameStop Corp. (NYSE:GME) is a specialty retailer that provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in GameStop Corp. (NYSE:GME) with 1.3 million shares worth more than $22 million.
10. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 18
AMC Entertainment Holdings, Inc. (NYSE:AMC) engages in the theatrical exhibition business. In early October, investment advisory B Riley maintained a Neutral rating on AMC Entertainment Holdings, Inc. (NYSE:AMC) stock with a price target of $15.
At the end of the third quarter of 2023, 18 hedge funds in the database of Insider Monkey held stakes worth $54 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), compared to 16 in the preceding quarter worth $39 million.
9. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 18
NIO Inc. (NYSE:NIO) designs, develops, manufactures, and sells smart electric vehicles in China. On December 6, investment advisory Bank of America maintained a Buy rating on NIO Inc. (NYSE:NIO) stock and lowered the price target to $11 from $13.
At the end of the third quarter of 2023, 18 hedge funds in the database of Insider Monkey held stakes worth $156 million in NIO Inc. (NYSE:NIO), compared to 19 in the preceding quarter worth $120 million.
8. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 26
Plug Power Inc. (NASDAQ:PLUG) delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions for supply chain and logistics applications, on-road electric vehicles, stationary power markets, and others in North America and internationally. On November 14, investment advisory UBS maintained a Buy rating on Plug Power Inc. (NASDAQ:PLUG) stock and lowered the price target to $5 from $15.5.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Plug Power Inc. (NASDAQ:PLUG) with 4.7 million shares worth more than $35 million.
7. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 43
Ford Motor Company (NYSE:F) designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. On December 19, investment advisory Citi maintained a Buy rating on Ford Motor Company (NYSE:F) stock and lowered the price target to $15 from $17.
At the end of the third quarter of 2023, 43 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Ford Motor Company (NYSE:F), compared to 40 in the preceding quarter worth $895 million.
6. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 73
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. On December 14, investment advisory Truist maintained a Buy rating on Pfizer Inc. (NYSE:PFE) stock and lowered the price target to $36 from $42, noting that antibody-drug conjugates were another pillar of medicine in oncology and the Seagen purchase provided the firm with an array of proven and promising candidates.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Pfizer Inc. (NYSE:PFE) with 13.6 million shares worth more than $451 million.
In addition to Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and The Walt Disney Company (NYSE:DIS), Pfizer Inc. (NYSE:PFE) is one of the best stocks to buy on Robinhood for beginners.
In its Q3 2023 investor letter, Smead Capital Management, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE:PFE) was one of them. Here is what the fund said:
“Through the first nine months of the year, we had a gain of 2.10%. The S&P 500 had a gain of 13.07% and the Russell 1000 Value had a gain of 1.79%. The stock market realized markedly higher riskless US Treasury interest rates had their effect on the stock market as it began to reassert what Warren Buffett calls the “gravitational pull” on price-to-earnings ratios (P/E).
On the downside, Target (TGT), Bank of America (BAC) and Pfizer Inc. (NYSE:PFE) detracted the most in the first nine months of the year. Pfizer (PFE) is suffering from a fall-off in Covid-19 vaccinations and we are trying to figure out what to do with it as a small holding.”
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Disclosure. None. 12 Best Stocks To Buy on Robinhood for Beginners is originally published on Insider Monkey.