Wall Street believes Robinhood’s top 3 stocks will skyrocket 25% or more
Robinhood investors love a number of stocks that aren’t exactly analysts’ favorites. If there are memes circulating the internet about a particular stock, chances are it is popular on Robinhood but not so much on Wall Street.
However, there are also several stocks that retail investors on the commission-free trading platform and analysts hold in high regard. Here are the top three Robinhood stocks that Wall Street says will skyrocket 25% or more.
You might think that with a market cap exceeding $ 2 trillion, there isn’t much room for Apple (NASDAQ: AAPL) grow. Analysts would disagree. The technology leader’s one-year average price target reflects a premium of nearly 28% over the current share price.
Apple is the second most owned stock among Robinhood investors. Why? Probably because they realize the incredible gap and the growth prospects Apple enjoys with its iPhone-centric ecosystem.
I think this ecosystem could expand enough for Apple to hit the Wall Street price target. The increased availability of high-speed 5G wireless networks continues to fuel demand for new iPhone models. Apple’s mobile device and service revenues also continue to grow significantly.
In the long run, I believe technological innovations will keep Apple among the preferred stocks for Robinhood investors and Wall Street analysts. Look for other augmented reality features along the way. There is also speculation that Apple could launch a foldable iPhone in 2023. A future market cap of $ 3 trillion or more is not out of the question at all.
Robinhood investors and analysts also agree on another stock called FAANG – Amazon.com (NASDAQ: AMZN). The internet giant is the ninth most popular action on Robinhood. Analysts believe Amazon’s stock price could rise 31% over the next 12 months.
There are two main growth drivers that could allow Amazon to generate this kind of growth. The company’s Amazon Web Services (AWS) cloud platform continues to operate at full capacity and is very profitable. Amazon is also experiencing strong momentum with its digital advertising business.
Value investor Bill Miller even believes those two units could account for the bulk of Amazon’s valuation over the next two years. He is also optimistic about the company’s business-to-business and logistics platforms. I suspect Miller’s optimism is there.
Don’t forget about e-commerce, however. Amazon remains the world’s largest e-commerce company. Online sales still represent less than 14% of total retail sales in the United States. Amazon has a lot of room to operate in its core business.
You might be at least a little surprised at the third Robinhood title on our list that Wall Street really loves. The average price target for Bionano genomics (NASDAQ: BNGO) is a whopping 80% higher than the current share price.
Bionano reported better than expected first quarter results in May. Revenue jumped 179% year over year to a record $ 3.2 million. Although the company has remained unprofitable, its results have moved in the right direction.
Customers seem to like Bionano’s Saphyr genome mapping system. As the installation base grows, the company’s recurring revenue from consumables increases. It’s the kind of business model that investors hope they can really pay off in the long run.
Bionano plans to have 150 Saphyr systems in the field by the end of this year, up 50% from the end of 2020. The company also plans to obtain accreditation soon for additional laboratory-developed tests for Saphyr . Bionano is riskier than Apple or Amazon, but analysts believe it could be a huge winner in the short term.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.