In this article, we discuss the 10 best Robinhood stocks under $20. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Robinhood Stocks Under $20.
More individual investors are investing in the stock market with the popularity of commission-free trading platforms like Robinhood Markets, Inc. (NASDAQ:HOOD). Retail investors who want to put their spare $100 into the stock market prefer Robinhood Markets, Inc. (NASDAQ:HOOD), not only because the platform offers access to zero-commission trading but also because the app allows traders to invest in fractional shares of certain stocks and exchange-traded funds (ETFs). Robinhood Markets, Inc. (NASDAQ:HOOD) also serves as a platform for cryptocurrency trading. The fintech company raised over $2 billion in its initial public offering (IPO) in July 2021, selling 52.4 million shares at $38 per share.
Robinhood Markets, Inc. (NASDAQ:HOOD) was founded in 2013 and since then has grown its funded accounts to 22.5 million at the end of the second quarter of 2021, with over 21.3 million monthly active users (MAU). The company’s assets under custody grew 205% to $102 billion in the second quarter of 2021, up from $33 billion in the same quarter last year. In addition, Robinhood Markets, Inc. (NASDAQ:HOOD) reported a 141% increase in transaction-based revenues to $451 million in Q2 2021 driven by increased cryptocurrencies transactions which amounted to $233 million, up from $5 million in Q2 2020.
Some of the most popular stocks on Robinhood Markets, Inc. (NASDAQ:HOOD) these days include blue-chip stocks Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and Amazon.com, Inc. (NASDAQ:AMZN). However, with a younger user base averaging 30 years old, retail investors are investing in lower-cost equities. Cheaper stocks like Ford Motor Company (NYSE:F), Nokia Corporation (NYSE:NOK), Zynga Inc. (NASDAQ:ZNGA), and BlackBerry Limited (NYSE:BB) are gaining traction on the stock trading app.
Investing has become difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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Our Methodology
With this context in mind, here is our list of the 10 best Robinhood stocks under $20. We selected the most popular stocks on Robinhood Markets, Inc.’s (NASDAQ:HOOD) stock trading app. The stocks on our list were picked based on their fundamentals and prospects for growth based on key business characteristics. We chose cheap stocks that have long-term growth prospects and high analyst ratings. You will see that most of the stocks in our list are from high-growth industries like electric vehicles, 5G networks, and cybersecurity.
We ranked these stocks based on the number of hedge funds having stakes in them, based on our data of over 873 hedge funds. Let’s now look at the 10 best Robinhood stocks under $20.
Best Robinhood Stocks Under $20
10. OrganiGram Holdings Inc. (NASDAQ:OGI)
Number of Hedge Fund Holders: 6
Price as of September 16: $2.40
We start our list of the 10 best Robinhood stocks under $20 with Canadian cannabis producer OrganiGram Holdings Inc. (NASDAQ:OGI). The company was founded in 2013 and it manufactures and sells recreational and medical cannabis and CBD products.
On July 15, Stifel analyst Andrew Partheniou kept a Hold rating on OrganiGram Holdings Inc. (NASDAQ:OGI) with a C$3.75 price target.
The company has a market cap of $736 million. In the third quarter of fiscal 2021, OrganiGram Holdings Inc. (NASDAQ:OGI) reported an EPS of -$0.01, beating estimates by $0.02. The company’s third-quarter revenue grew 31% year over year to $16.24 million and beat revenue estimates by $2.89 million. The stock has gained 85%, year to date.
At the end of the second quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $5.96 million in OrganiGram Holdings Inc. (NASDAQ:OGI), down from 9 in the previous quarter worth $15.2 million.
Just like Ford Motor Company (NYSE:F), Nokia Corporation (NYSE:NOK), Zynga Inc. (NASDAQ:ZNGA), and BlackBerry Limited (NYSE:BB), OrganiGram Holdings Inc. (NASDAQ:OGI) is one of the cheaper stocks popular on Robinhood app.
9. Ideanomics, Inc. (NASDAQ:IDEX)
Number of Hedge Fund Holders: 6
Price as of September 16: $2.19
Ideanomics, Inc. (NASDAQ:IDEX) ranks 9th on the list of 10 best Robinhood stocks under $20. The New York-based fintech firm offers financial services to promote the use of electric vehicles.
The company has a market cap of $1.04 billion. In the second quarter of 2021, Ideanomics, Inc. (NASDAQ:IDEX) reported an EPS of -$0.02, missing estimates by -$0.01. The company’s revenue in the second quarter came in at $33.22 million, an increase of 608% year over year, and beat revenue estimates by $2.22 million.
At the end of the second quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $34.8 million in Ideanomics, Inc. (NASDAQ:IDEX), down from 7 in the previous quarter worth $21 million.
Just like Ford Motor Company (NYSE:F), Nokia Corporation (NYSE:NOK), Zynga Inc. (NASDAQ:ZNGA), and BlackBerry Limited (NYSE:BB), Ideanomics, Inc. (NASDAQ:IDEX) is one of the cheaper stocks popular on Robinhood app.
8. Sundial Growers Inc. (NASDAQ:SNDL)
Number of Hedge Fund Holders: 10
Price as of September 16: $0.72
Canadian cannabis producer Sundial Growers Inc. (NASDAQ:SNDL) ranks 8th on the list of 10 best Robinhood stocks under $20. Sundial Growers Inc. (NASDAQ:SNDL) sells cannabis-infused inhalable products and vapes for adult use.
On July 20, ATB Capital analyst David Kideckel upgraded Sundial Growers Inc. (NASDAQ:SNDL) to Sector Perform from Underperform and increase his price target for the stock to $0.80 from $0.50, following the completion of SNDL’s CA$131 million acquisition of cannabis retailer Inner Spirit Holdings Ltd.
The company has a market cap of $1.5 billion. In the second quarter of 2021, Sundial Growers Inc. (NASDAQ:SNDL) reported an EPS of -$0.02, missing estimates by -$0.02. The company’s revenue in the second quarter came in at $7.31 million.
At the end of the second quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $76.5 million in Sundial Growers Inc. (NASDAQ:SNDL), up from 7 in the previous quarter worth $18.8 million.
Just like Ford Motor Company (NYSE:F), Nokia Corporation (NYSE:NOK), Zynga Inc. (NASDAQ:ZNGA), and BlackBerry Limited (NYSE:BB), Sundial Growers Inc. (NASDAQ:SNDL) is one of the cheaper stocks popular on Robinhood app.
7. FuelCell Energy, Inc. (NASDAQ:FCEL)
Number of Hedge Fund Holders: 14
Price as of September 16: $6.15
FuelCell Energy, Inc. (NASDAQ:FCEL) is a fuel cell company based in Connecticut that ranks 7th on the list of 10 best Robinhood stocks under $20. FuelCell Energy, Inc. (NASDAQ:FCEL) supplies fuel cell power solutions in the United States, England, Switzerland, Germany, and South Korea.
On June 11, B. Riley analyst Christopher Souther kept a Neutral rating on FuelCell Energy, Inc. (NASDAQ:FCEL) with a price target of $10 per share. According to the analyst, the commoditization of carbon capture and solid oxide in 2022 and beyond will be significant catalysts for FuelCell Energy, Inc. (NASDAQ:FCEL).
The company has a market cap of $2.25 billion. FuelCell Energy, Inc. (NASDAQ:FCEL) saw its stock rise 14.9% on September 14 after the company reported better-than-expected third-quarter earnings. In the third quarter of fiscal 2021, FuelCell Energy, Inc. (NASDAQ:FCEL) reported an EPS of -$0.04, beating estimates by $0.01. The company’s revenue in the fiscal third quarter was $26.82 million, an increase of 43% year over year, and above estimates by $6.19 million. The stock has gained 146% in the past twelve months.
At the end of the second quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $105 million in FuelCell Energy, Inc. (NASDAQ:FCEL), up from 13 in the previous quarter worth $68 million.
Just like Ford Motor Company (NYSE:F), Nokia Corporation (NYSE:NOK), Zynga Inc. (NASDAQ:ZNGA), and BlackBerry Limited (NYSE:BB), FuelCell Energy, Inc. (NASDAQ:FCEL) is one of the cheaper stocks popular on Robinhood app.
6. BlackBerry Limited (NYSE:BB)
Number of Hedge Fund Holders: 20
Price as of September 10: $10.16
BlackBerry Limited (NYSE:BB) ranks 6th on the list of 10 best Robinhood stocks under $20. The Canadian company is a provider of cybersecurity software for enterprise solutions. The company was founded in 1984 and was formerly known as Research In Motion Limited.
Shares of BlackBerry Limited (NYSE: BB) climbed 5% on August 18 as Canaccord Genuity analyst T. Michael Walkley upgraded BlackBerry Limited (NYSE:BB) to Hold from Sell and maintained his price target of $10. The analyst cited the potential of the company’s cybersecurity segment.
The company has a market cap of $5.9 billion. In the first quarter of fiscal 2022, BlackBerry Limited (NYSE:BB) reported an EPS of -$0.05, beating estimates by $0.00. The company’s revenue in the first quarter was $174 million and beat revenue estimates by $2.96 million. The stock has gained 57%, year to date and 116% in the past twelve months.
At the end of the second quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $703 million in BlackBerry Limited (NYSE:BB), down from 24 in the previous quarter worth $694 million.
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Disclosure: None. 10 Best Robinhood Stocks Under $20 is originally published on Insider Monkey.
