5 Best Robinhood Stocks Under $20 to Buy Now

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1. Peloton Interactive Inc (NASDAQ:PTON)

Stock Price: $6.40

Number of Hedge Fund Holders: 52

Stock Upside Potential: 24%

Peloton Interactive Inc (NASDAQ:PTON) is among the best Robinhood stocks under $20 to buy now. Peloton shares are up more than 19% over the past month, and the Street sees more upside in the stock.

On May 27, Telsey Advisory Group reaffirmed its Market Perform rating on Peloton Interactive Inc (NASDAQ:PTON) stock with a price target of $6 on the shares. The firm based its decision on Peloton’s improved balance sheet and expected growth as the company unlocks new revenue streams.

According to Telsey, Peloton’s March quarter results exceeded expectations, and the company’s balance sheet improved significantly. Peloton reported a 41% YoY increase in adjusted EBITDA and a 70% reduction in net debt during the quarter.

Telsey noted that Peloton’s content licensing deal with Spotify and commercial sales have the potential to become bigger revenue sources. Peloton has struck a deal to distribute its exercise-focused content through Spotify’s platform. It also introduced commercial-grade exercise equipment for gyms. Additionally, the company is expected to introduce new products later in the year at more accessible pricing.

Peloton Interactive Inc (NASDAQ:PTON) makes exercise equipment and provides media materials that go along with the equipment. Its products include treadmills, stationary bikes, and indoor rowers. Additionally, the company provides live and on-demand fitness classes that users can access directly on its exercise machines.

While we acknowledge the potential of PTON to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PTON and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Land and Timber Stocks to Buy Now and 10 Best Sin Stocks to Buy Now.

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