Product Expansion and International Momentum to Drive Returns in 2026 for Robinhood (HOOD)

Robinhood Markets (NASDAQ:HOOD) is one of the 12 oversold financial stocks to invest in according to hedge funds.

On February 11, James Yaro of Goldman Sachs maintained a Buy rating on Robinhood Markets. However, he reduced the price target from $152 to $130, which leads to a revised upside of more than 71%.

Photo by Nicholas Cappello on Unsplash

Yaro reflected on the company’s core EPS of 61c, which missed consensus estimates by 4% amid slightly softer revenues, leading to a mixed market response. However, leadership remains optimistic about 2026 based on a notable acceleration in customer activity, rising deposits, impressive product expansion, and international momentum.

On February 11, the price target for Robinhood Markets was reduced from $135 to $100 by Needham analyst John Todaro, who also maintained his Buy rating on the stock. This downward revision now leads to an upside potential of almost 32% from the prevailing level.

The analyst pointed towards the company’s promising fourth quarter results, which met expectations. Notably, Prediction markets showed exceptional momentum with January volumes reaching an all-time high of 3.5 billion contracts. Todaro predicted near-term weakness in crypto activity for the next two quarters, with a gradual recovery later in the year.

Robinhood Markets is a financial technology platform that enables retail investors to make commission-free investments across diverse financial securities. These include ADRs, cryptocurrencies, ETFs, gold, options, and shares. It offers various services such as fractional trading, securities lending, margin trading, around-the-clock trading, joint investments, future contracts, and others.

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This article is originally published at Insider Monkey.