Three Robinhood Shares that Analysts Assume Will Transfer Greater

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3 Robinhood Stocks that Analysts Think Will Move Higher

December
14, 2020

8 min read

This story originally appeared on StockNews

Robinhood was the most widely used stock trading platform by millennials because of its no commission. As more millennials take an active interest in the stock markets, the Robinhood platform has grown to more than 13 million users. This is due to the recovering stock market in the last two quarters despite the economic weakness. With unemployment rates rising and remote working freeing up more screen time, a large segment of millennials have taken up active trading.

It's no surprise that the tech-savvy generation likes some of the greatest tech stocks in the world. While many investors are focusing on outdoor stocks very soon, given the recent coronavirus vaccine approval and the possible widespread adoption of vaccines, millennials have taken advantage of the market slump because they expect prices to rebound anytime soon.

While vaccine development resulted in a technical sell-off last month, analysts expect big names in the sector to rebound quickly as the services these companies offer are likely to remain in demand.

With most Millennials trading heavily with the biggest tech companies, Amazon.com, Inc. (AMZN – Get Rating), Visa, Inc. (V – Get Rating), and Sony Corporation (SNE – Get Rating) have their positions at the top secured 20 out of 100 most popular stocks on the Robinhood platform.

Amazon.com, Inc. (AMZN Rating Received)

As the largest e-commerce company in the world, AMZN was one of the pandemic's biggest winners. With an average trading volume of 4.82 million, AMZN is the fourth most active stock on the Robinhood 100 list.

Despite a 67.8% increase since the start of the year, analysts expect AMZN to rise in the coming months. This is mainly due to a widespread second wave of coronavirus infections that hit most of the countries in the world. Analysts expect the price of AMZN to reach $ 3830.49, an increase of 20.2% from the current price.

It does so despite the current antitrust fees being imposed on the company by the US government and the European Union as the company implemented an ambitious expansion strategy to increase its market reach. AMZN is currently building several fulfillment centers across the country and developing its cloud services segment (AWS). As the demand for cloud services continues to grow in the remote working and learning culture, AWS has grown into one of the top three cloud computing companies and is poised to continue expanding into the Indian and European markets.

AMZN launched Amazon Pharmacy for online prescription drug sales on November 19th. The online e-commerce platform for drug sales offers multiple savings benefits with up to 80% savings on non-prescription drugs. With a second wave of COVID-19 in the US and high unemployment, AMZN pharmacies are likely to see high demand as people order medication online to save money while staying socially distant.

AMZN's net sales increased 37% year over year to $ 96.10 billion for the third quarter ended September 30. Net income rose 200% year over year to $ 6.30 billion, while earnings per share rose 192.4% year over year to $ 12.37.

The consensus-based EPS estimate of $ 7.09 for the quarter ended December 31st represents an increase of 9.6% year over year. The company has an impressive earnings surprise history. It beat Street's EPS estimates for three of the past four quarters. Consensus revenue estimate of $ 119.44 billion for the current quarter represents an increase of 36.6% year over year. AMZN rose more than 115%, hitting its 52-week high of $ 3,552.25 in September, since it hit its 52-week low of $ 1,626.03 in March.

How does AMZN stack up for the POWR ratings?

B for trade grade

B for Buy & Hold Grade

A for industry rank

B for the overall POWR rating.

The share currently ranks 17th out of 59 shares in the Internet industry.

Visa, Inc. (V Rating Received)

V is one of the world's largest financial payment processing companies. It thrived in the pandemic. As the demand for online transactions has increased significantly with the lockdown, customers and merchants around the world have introduced virtual payments. V's position as the largest commercial payment card network has made it one of the most actively traded stocks in the US, with an average trading volume of 7.89 million. It is currently number 18 on the Robinhood 100 list.

With the technological advances currently taking place, most industrialized countries have become virtually cashless, while the volume of digital transactions is increasing significantly in developing and underdeveloped parts of the world. With many countries currently developing and testing their digital currencies, V's industry knowledge as a leading payment processor is key to making international transactions easier this way.

Analysts expect the price of V to rise 8.15% to $ 225 in the near future. The company's recent acquisition of YellowPepper and Plaid adds significantly to this bullish expectation as it helps V strengthen its position as a global industry leader. On November 23, the company entered into a strategic partnership with Visa Commercial Pay to optimize transactions in the B2B segment. This should bring higher customer volume for V as most companies are currently working remotely.

V's payment volume and processed transactions increased 4% and 3%, respectively, for the fourth quarter ended September 30, year over year. Computing revenue increased 4% year over year to $ 2.88 billion, while Other revenue increased 5% year over year to $ 361 million.

The consensus-based EPS estimate of $ 5.45 for the current year represents an increase of 8.1% over the previous year. The company also has an impressive earnings surprise history. It exceeded Street's EPS estimates in three of the four quarters of the railing. The consensus revenue estimate of $ 23.22 billion for the current year shows an increase of 6.3% over the same period last year. V has gained more than 50% since hitting its 52-week low of $ 133.93 in March.

It's no surprise that V is rated “Strong Buy” on our proprietary POWR scoring system, with an “A” for Trade Grade and “Buy & Hold Grade” and a “B” for Peer Grade and Industry Rank. V currently ranks # 1 in the 96-share consumer financial services industry.

Sony Corporation (SNE Rating Received)

SNE is active in several segments in the virtual entertainment industry – from developing hardware such as television, cameras and playback stations to designing and producing game software, films and music. SNE, based in Japan, has become a household name in most of the world. The company is the fifth most active stock on the Robinhood platform with an average trading volume of 1.09 million.

Analysts expect SNE to gain 7.3% to $ 100.65. The company's diversified product range and international market reach make it well-positioned to grow despite macroeconomic factors as it enjoys significant brand loyalty. The company launched PlayStation 5 in November, which has already proven to be a huge success. Work is currently underway on the Airpeak project, which will develop and manufacture drones for commercial purposes. Coupled with the recent acquisitions of anime developer Ellation Holdings and media production company Nevion, this should take the business to new heights.

SNE's operating profit in the second quarter ended September 30 increased 14% year over year to ¥ 317.80 billion. Adjusted EBIT increased 14% year-over-year to ¥ 299.60 billion, while net income increased 145% year-over-year – ag value to 459.60 billion yen.

The consensus-based EPS estimate of $ 0.31 for the next quarter ending March 31, 2021 shows an increase of 210% year over year. Additionally, SNE outperformed Street EPS estimates for three of the past four quarters, which bodes well for the stock. Consensus revenue estimate of $ 19.10 billion for the next quarter shows an increase of 21.4% over the same period last year.

SNE is up more than 85% since hitting its 52-week low of $ 50.94 in March. The stock hit its 52-week high of $ 94.97 earlier today.

SNE is rated “Strong Buy” in our POWR rating system, with an “A” for trade grade, buy & hold grade and peer grade and a “B” for industry grade. It is currently number 1 of 21 stocks in the Entertainment – Media Producers industry.

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AMZN shares fell $ 1.70 (-0.05%) after close of trading on Friday. Since the beginning of the year, AMZN has gained 68.65%, while the reference index S&P 500 increased by 15.44% over the same period.