In this article, we will be taking a look at the 13 Best Stocks to Invest In on Robinhood for Beginners.

MacroMicro reports that as of March 18, 2026, the S&P 500’s forward 12-month P/E was 21.35, which was far higher than its 10-year historical average of 18.9 but slightly lower than the 22.0x reported at year’s end 2025. In January 2026, Goldman Sachs chief U.S. stock strategist Ben Snider stated that there was little room for error because the 22x multiple was extremely near to the record 24x in 2000 and matched the 2021 peak. In this situation, investors have been shifting more and more toward less-priced businesses.

The Russell 3000 Value Index increased by 2.59% in February 2026 while the Growth Index decreased by 2.56%, a difference of more than 5% in only one month, according to James Investment Research. In a similar vein, the Morningstar US Value Index increased by 18.60% in the year ending February 19, 2026, while the Morningstar US Growth Index increased by 8.33%.

As market pressure increases, there is a shift towards value. The S&P 500 has already lost almost 4% of its value so far this year, and rising oil prices linked to the intensifying conflict with Iran have heightened concerns about inflation and lowered hopes for interest rate reductions. Former Lehman Brothers trader Larry McDonald has warned of a potential 20% to 35% market decline, noting the Magnificent Seven are down 11% from their 2025 peaks. He also flagged the risk of the U.S. jobless rate rising to 6% from around 4%, especially after the U.S. lost 92,000 jobs in February.

In light of this, Robinhood Markets provides investors with access to possibilities that are undervalued. Since the introduction of fractional shares in late 2019, the platform has attracted over 27 million individual investors. In February 2026, Robinhood revealed $314.2 billion in assets, 27.4 million funded users, and $68 billion in net deposits over the preceding year, indicating its growing prominence as a major retail investment platform.

With that said, let’s now move on to the best Robinhood stocks.

Our Methodology  

For our methodology, we screened stocks available on the Robinhood app with a market capitalization of over $2 billion and analyst upside potential of at least 20%. We then narrowed our final selection to companies that have recently reported noteworthy developments likely to influence investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Here is our list of the 13 best stocks to invest in on Robinhood for Beginners.

13. XPeng Inc. (NYSE:XPEV)

Number of Hedge Fund Holders: 27  

XPeng Inc. (NYSE:XPEV) is among the best Robinhood Stocks.

TheFly reported on March 23 that Barclays kept an Underweight rating on XPEV while cutting its price target from $17 to $16 following the company’s fourth quarter results. Although XPEV’s first-quarter outlook was worse, the firm said that fourth-quarter sales and gross margin came in mostly as anticipated.

XPeng Inc. (NYSE:XPEV) issued its first-quarter 2026 guidance and its unaudited fourth-quarter and full-year 2025 financial results on March 20. The company reported revenue of RMB22.25 billion for the fourth quarter, increasing 9.2% sequentially and 38.2% year over year. Vehicle sales revenue increased to RMB19.07 billion. XPEV reported a net profit of RMB 0.38 billion, reversing losses from the previous quarter and the previous year, and its gross margin increased to 21.3%. RMB0.51 billion was the non-GAAP net profit. The business has RMB47.66 billion in cash by the end of 2025.

The corporation reported that, for the full year 2025, its revenue climbed 87.7% to RMB76.72 billion, which was supported by total deliveries of 429,445 vehicles. Looking ahead, XPEV forecasts first-quarter 2026 deliveries of 61,000 to 66,000 vehicles and revenue of RMB12.20 billion to RMB13.28 billion, indicating expected year-over-year declines.

XPeng Inc. (NYSE:XPEV) is a China-based smart electric vehicle maker that designs, develops, manufactures, and sells premium EVs, while also offering in-house autonomous driving technology, charging services, and intelligent mobility solutions.

12. Varonis Systems, Inc. (NASDAQ:VRNS)

Number of Hedge Fund Holders: 31  

Varonis Systems, Inc. (NASDAQ:VRNS) is one of the best Robinhood stocks to invest in.

TheFly reported on March 23 that William Blair lowered its rating on VRNS from Outperform to Market Perform, without assigning a price target. The downgrading was a reflection of the firm’s worries about increased unpredictability in the AI-driven software industry. According to William Blair, infrastructure software firms are about to undergo a significant shift that calls for them to reevaluate their offerings, pricing structures, and marketing tactics. The company underlined that AI’s disruptive effects on the sector are significant and unlikely to abate anytime soon, indicating continued difficulties for businesses in the infrastructure software sector.

Varonis Systems, Inc. (NASDAQ:VRNS) officially launched Varonis Atlas on March 17, which is a comprehensive AI security platform designed to give organizations full visibility and control over AI across their operations. The platform covers the complete AI security lifecycle, from discovery and risk assessment to runtime protection and compliance, and integrates with all AI systems, including hosted platforms, custom models, and agentic frameworks.

Built on VRNS’ existing data security infrastructure, Atlas links AI activity to sensitive data, enabling enterprises to identify shadow AI, enforce real-time guardrails, manage third-party AI risk, and maintain ongoing compliance, providing a structured approach to secure and trustworthy AI deployment.

Varonis Systems, Inc. (NASDAQ:VRNS) is a cybersecurity software company that provides AI‑powered data security and analytics solutions to discover, classify, and protect sensitive enterprise data, detect threats, automate risk remediation, and enforce access policies across cloud and on‑premises environments.