5 Best Stocks to Buy on Robinhood for Beginners

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In this article, we will take a look at the 5 best stocks to buy on Robinhood for beginners. To see more such companies, go directly to 11 Best Stocks to Buy on Robinhood for Beginners.

5. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 91

Tesla, Inc. (NASDAQ:TSLA) is one of the most popular stocks among both retail investors and hedge funds. We recently reported in our list of the most promising car stocks how analysts are growing bullish on Tesla, Inc. (NASDAQ:TSLA) for the long term on the back of new growth catalysts. On average, analysts have a price target of around $196 on Tesla, Inc. (NASDAQ:TSLA). Cathie Wood, one of the biggest stakeholders of Tesla, Inc. (NASDAQ:TSLA), believes the stock could hit $500 by 2026.

At the end of the fourth quarter of 2022, 91 hedge funds had stakes in Tesla, Inc. (NASDAQ:TSLA). The net worth of these stakes was about $6 billion. The biggest stakeholder of Tesla, Inc. (NASDAQ:TSLA) was Ken Griffin of Citadel Investment Group with a $926 million stake.

ClearBridge Large Cap Growth Strategy made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2022 investor letter:

Tesla, Inc. (NASDAQ:TSLA), meanwhile, also fits squarely within our earnings reset group. We took advantage of its enterprise multiple falling back to historic lows to initiate a starter position in the leading manufacturer of electric vehicles (EV) and developer of battery technologies. Tesla has a significant structural cost advantage in battery production, EV manufacturing and EV selling, which gives it industry-leading operating margins in EVs. As the auto cycle has softened, the stock has sold off substantially with the rest of the automakers, despite EVs continuing to have a secular growth advantage. Tesla has a clean balance sheet with negative net debt and enormous revenue growth, EBITDA growth and free cash flow generation. Its margin buffer also gives the company the ability to cut prices while still protecting earnings better than competitors, which should help support continued volume growth. There is also significant upside optionality driven by its software offerings, which we do not believe is currently priced into the stock.

That being said, Tesla is highly indexed to a flagging auto market and we expect its earnings outlook to worsen in the near term. We are also monitoring increasing EV competition and the recently emerging risks to the brand and management integrity raised by CEO Elon Musk’s actions at Twitter to determine future position size in the portfolio.”

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