3 Robinhood Favs the Street Loves Too

The popular commercial application Robinhood has not gone as well as a public company. Almost a year ago, shares debuted on the Nasdaq at $ 38.00 per share. On Friday, it closed at $ 8.00.

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That hasn’t stopped users from scrolling through their phones to grab shares of their favorite companies during the 2022 bear market. In fact, the list of the most popular names in Robinhood accounts hasn’t changed much.

Today’s Robinhood-100 still contains a combined bag of constant megacaps like Apple, has been like Peloton, and “could be” like Context Logic and Sundial Growers. It’s a lineup that looks surprisingly similar to 12 months ago.

We know the Robinhooders have stayed true to their preferred stakes during the market crash. But what about Wall Street?

Given the largely speculative nature of the Robinhood-100 list, it’s not usually that research-focused companies fundamentally agree with the retailer primarily driven by social media. However, Street and Robinhooders are clearly in agreement with the growth potential of these three names.

What are the most popular actions of Robinhood?

Microsoft Corporation (NASDAQ: MSFT) stands on top of the Robinhood-100, the most owned stock of a growing army of young investors. The world’s second largest company by market capitalization is also one of Street’s favorites.

In the past three months, more than two dozen commercial companies have called Microsoft for a purchase. Only one has maintained a neutral position and none has been brazen enough to be a bassist.

Why would they do that? With technology sadly disadvantaged lately, software maker shares have fallen more than 20% from its November 2021 peak.

In addition to the overwhelmingly bullish sentiment on the street, Microsoft’s recent price targets reach $ 300. Earlier this month, two companies, Wells Fargo and Credit Suisse, set $ 400 targets in equities, implying a 50% rise and a new all-time high.

Analysts have consistently called Microsoft’s withdrawal a buying opportunity. This is mainly due to the fact that the long-term growth prospects of the Azure cloud business remain strong. With digital transformation underway in many industries, demand for cloud infrastructure and applications is expected to drive double-digit earnings growth over the next few years. An aggressive push into the gaming market by buying Activision Blizzard should also keep growth (and Robinhood retailers).

Will NIO shares continue to rise?

NIO Inc. (NYSE: NIO) is one of the first favorites of this summer’s big hit. The Chinese electric vehicle (EV) maker has more than doubled last month’s fund and has some momentum on its side. He also has Wall Street by his side, not to mention being one of the 20 most popular Robinhood stocks.

A perfect 12 for 12 analysts have given NIO a buy rating in the last 3 months without any retention or sale. In recent weeks alone, eight of these analysts have reiterated their optimistic views. Last week, Mizuho Securities became the latest group to offer a bright view of NIO and a $ 48 target price that suggests the shares may be doubled again.

It’s easy to see why retailers and street vendors are optimistic about NIO’s growth potential. After all, the company has a leading position in the largest electric vehicle market in the world. Last year, China accounted for more than half of global electric vehicle sales.

This year, NIO has been hampered by the renewal of the Covid blockade and supply chain disruptions, but there have been signs of improvement. Vehicle deliveries in May 2022 increased 12% despite recent outbreaks. And with reduced restrictions and strong demand, management said it plans to speed up the delivery of its premium electric smart sedans and SUVs in the later half of the year.

Earlier this month, Deutsche Bank noted that NIO is on the cusp of a “robust product supercycle” by which deliveries could triple by the end of the year. According to the momentum of the stock, it could happen a triple of the bottom much earlier.

What is Robinhood’s favorite drug?

Catalyst Pharmaceuticals, Inc. (NASDAQ: CPRX) is the most widespread health stock among the Robinhooders. Biotechnology is even more popular than the pillars of the Pfizer and Moderna coronavirus vaccine. Because?

For starters, Catalyst is a somewhat unfavorable story that emerged from the depths of penny stock territory to a record high near $ 9 in April 2022 as the broader market struggled. And given its low stock price, there seem to be more advantages compared to the more established and higher priced Pfizer and Moderna.

Beyond that, the company is seeing a major adoption of its flagship product Firdapse, a treatment for a rare disease called Lambert-Eaton Myasthenic Syndrome (LEMS). The drug, which is also being developed for other neuromuscular conditions, received a major boost from an FDA decision in March 2022 against a rival drug that paved the way for a historic high.

Aside from Firdapse, Catalyst’s development of a generic version of Sabril Childhood Spasm Therapy in collaboration with Endo Pharmaceuticals could lead to reduced reliance on its main program and higher sales. This, along with a pipeline focused on treatments for other rare diseases, has the most recent price targets posted on the street at $ 12, implying a 77% rise.

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