In this article, we discuss the 10 cheapest stocks to buy on Robinhood along with the latest updates around the market.
While the market has been on an upward trajectory for nearly two years now, the combination of seasonal trends, strong retail, and corporate activity, and positive market momentum following the November election still suggests a potential for continued growth in U.S. equities.
Goldman Sachs’ Scott Rubner predicts a year-end rally that will push the S&P to 6,200 points as reported by Bloomberg on November 25. He attributes this potential rally to growing retail enthusiasm in equities and crypto, seasonal trading patterns, and increasing corporate buyback demand.
Rubner noted that the recent consolidation phase is typical, and highlighted significant inflows into U.S. equities, with the broader market gaining over 3% since the November 5 presidential vote and the Russell 2000 rising 6.5%. Historically, strong market performance in election years tends to extend into January, with the capital being deployed at the start of the new year.
Read Also: Jim Cramer’s Lightning Round: 9 Stocks in Spotlight and 10 Best Renewable Energy Penny Stocks to Invest In.
Strategic Investment Moves in a Shifting Economy
In an interview with Seana Smith and Madison Mills of Yahoo Finance, Jim Smigiel, SEI’s Chief Investment Officer, highlighted several key insights for investors, in light of President-elect Donald Trump’s pro-growth policies. He warned that these policies could lead to higher inflation and rising interest rates, which may impact investment strategies. For investors, the focus should be on understanding how inflation and rates can affect different assets and staying prepared for potential shifts in the market.
Smigiel sees opportunities in small-cap stocks, value stocks, and financials, which are expected to benefit from the current reflationary environment. He suggested investors consider diversifying their portfolios to reduce reliance on highly concentrated growth sectors like tech. Active management, where professional fund managers select investments, could also be a useful strategy to broaden exposure and adapt to market changes.
While higher rates could eventually pose challenges, Smigiel noted that small-cap stocks remain attractive for now due to improved debt structures, providing a window of opportunity until around 2026. Investors should keep an eye on rising yields, as it might signal a need to shift toward more defensive investments. Diversification remains critical in managing risks during this period.
With that, we take a look at the 10 Cheapest Stocks to Buy On Robinhood.
10 Cheapest Stocks to Buy On Robinhood
Our Methodology
For this article, we checked all the large-cap companies trading on Robinhood with at least 50% positive analyst ratings. We narrowed our list to nearly 40 stocks that were trading below a forward price-to-earnings multiple of under 15. We also skipped the stocks that were trading above or at their industry median despite trading below a PE ratio of 15. Finally, we chose the 10 cheapest stocks to buy based on their average analyst price target upside as of November 25 (pre-market open). These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Cheapest Stocks to Buy On Robinhood
10. Centene Corporation (NYSE:CNC)
Market Cap: $30.8 billion
FWD PE Ratio: 8.84
Average Price Target Upside: 35.83%
Centene Corporation (NYSE:CNC) is a U.S.-based healthcare company providing services to under-insured families, businesses, and military groups. It operates through Medicaid, Medicare, and Commercial segments, offering health plans, insurance products, and government contract services like TRICARE. The company also manages clinical healthcare facilities, pharmacies, dental care, and speech therapy.
Centene’s (NYSE:CNC) Q3 results highlight solid progress in Medicaid stabilization, Medicare Star Ratings improvement, and marketplace growth. Moreover, the company remains on track to achieve its full-year goals while positioning itself for long-term success. The company’s Q3 2024 results exceeded expectations, with adjusted EPS of $1.62 driven by favorable tax timing. Medicaid membership stabilized at 13 million as redeterminations concluded, with 30% of disenrolled members returning, though gaps caused temporary challenges. The Medicaid Health Benefits Ratio (HBR) was 93.1%, and rate adjustments are projected at 4.5%-5% in the year’s second half.
Medicare Star Ratings improved, with 46% of members in 3.5-star plans or higher for 2025, up from 23%. Medicare Advantage revenue is expected to reach $14-$16 billion in 2025. Marketplace membership grew 22% year-over-year to 4.5 million, with stable margins forecasted. Operational efforts, including AI for provider contracts, supported $36.9 billion in Q3 revenue. Finally, despite cash flow impacts from rate increases, Centene (NYSE:CNC) repurchased $1.6 billion in shares.
Oakmark Select Fund stated the following regarding Centene Corporation (NYSE:CNC) in its Q2 2024 investor letter:
“Centene Corporation (NYSE:CNC) is one of the largest health insurers in the U.S. The company specializes in three major government-sponsored programs: Medicaid, Marketplace and Medicare Advantage, each of which benefits from long-term secular tailwinds. In Medicaid, states are steadily outsourcing their programs to companies like Centene to reduce costs and improve care quality. Managed Medicaid penetration has increased throughout the past decade and we expect further gains over time. In Marketplace, growth is driven by the trend toward more individuals buying health insurance. Centene holds the #1 market share in both of these programs and is well positioned to capitalize on their continued growth. Finally, we believe management is successfully turning around Centene’s Medicare business and expect the division to generate positive earnings over time. After adjusting for losses stemming from Centene’s Medicare business, we were able to purchase shares at a single-digit P/E multiple, which we think is too cheap for a leading, secularly growing Medicaid company and an improving Medicare business.”
9. Cenovus Energy Inc. (NYSE:CVE)
Market Cap: $29.57 billion
FWD PE Ratio: 10.99
Average Price Target Upside: 36.62%
Cenovus Energy Inc. (NYSE:CVE) focuses on the development, production, refining, and marketing of crude oil, natural gas, and refined products. It operates through five segments: Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining. Key assets include oil sands projects in Alberta, natural gas operations in Western Canada, offshore activities in China and the East Coast of Canada, and refining facilities in Canada and the U.S.
In the third quarter of 2024, Cenovus (NYSE:CVE) demonstrated strong operational and financial performance despite a heavy maintenance period. Major turnarounds at upstream and downstream facilities were completed ahead of schedule, improving reliability for the remainder of the year and into 2025. Upstream production averaged 771,000 barrels of oil equivalent per day (BOE/day), with the oil sands segment delivering 586,000 barrels/day and an operating margin of $2.5 billion.
Early completion of maintenance at Christina Lake boosted production beyond forecasts by 15,000–20,000 barrels/day. The TMX pipeline, now fully operational, added global market access and contributed to a stable Western Canadian Select differential, which benefit Canadian oil prices. Offshore production remained stable at 66,000 BOE/day, with significant milestones achieved, including life-extension work on the SeaRose FPSO and continued progress on the West White Rose project, now 85% complete and set for first oil in 2026. Cenovus (NYSE:CVE) also returned a healthy amount of $1.1 billion through dividends and buybacks.
L1 Long Short Fund stated the following regarding Cenovus Energy Inc. (NYSE:CVE) in its Q3 2024 investor letter:
“Cenovus Energy Inc. (NYSE:CVE) (Long -15%) and MEG Energy (Long -13%) shares fell as the WTI oil price decreased 17% to ~US$69/bbl on the back of increased concerns around a potential increase in OPEC supply along with slower global economic growth. Despite OPEC delaying a previously planned increase in oil output, the oil price continued to weaken due to the weaker demand outlook. During the quarter, we attended the Peters & Co oil and gas conference in Toronto, meeting one on one with management from Cenovus and MEG Energy, along with the entire peer group. We continue to favour Cenovus and MEG in the sector due to their strong cash flow generation, the long -life nature of their oil sands assets, low cost of production and strong balance sheet s. Both Cenovus and MEG have now transitioned to returning 100% of free cash flow back to shareholders, having reached their respective net debt targets. As a result, we see both names offering sector leading shareholder returns, combined with some modest, accretive output growth.”
8. Honda Motor Co., Ltd. (NYSE:HMC)
Market Cap: $41.4 billion
FWD PE Ratio: 5.85
Average Price Target Upside: 38.53%
Honda Motor Co., Ltd. (NYSE:HMC) designs, manufactures, and sells motorcycles, automobiles, power products, and other goods globally. It operates through several segments including Motorcycles, Automobiles, Financial Services, and Power Products. The company also supplies spare parts and after-sale services through a network of dealers and distributors.
Honda (NYSE:HMC) demonstrated solid financial performance in the first half of FY 2025, driven by strong motorcycle sales and stable operations in key markets like North America and Japan. Despite challenges in China and rising costs, the company maintained its full-year profit forecast and continues to prioritize shareholder returns through dividends and share buybacks.
The company highlighted steady sales growth in motorcycles and ICE/HEV vehicles in FQ2 2025 with motorcycle sales reaching 10.38 million units, while automobile and power product sales stood at 1.78 million and 1.65 million units, respectively. Operating profit saw a ¥46 billion (¥1 = US$0.0065) increase, with higher unit sales and pricing offset by increased incentives, R&D expenses, and currency impacts. However, total automobile sales declined by 155,000 units year-over-year, largely due to reduced sales in China.
Honda (NYSE:HMC) maintained its full-year operating profit forecast of ¥1.42 trillion but reduced its profit forecast attributable to owners to ¥950 billion, reflecting weakened Chinese sales and lower domestic affiliate profits. Interim and annual dividends are set at ¥34 and ¥68 per share, respectively, with an additional ¥100 billion allocated for share buybacks. Full-year forecasts include higher motorcycle sales in Asia, unchanged automobile and power product forecasts, and adjustments for currency fluctuations and increased costs.
7. MGM Resorts International (NYSE:MGM)
Market Cap: $11.255 billion
FWD PE Ratio: 14.73
Average Price Target Upside: 38.89%
MGM Resorts International (NYSE:MGM) owns and manages casino, hotel, and entertainment resorts across the U.S. and internationally. It operates through Las Vegas Strip Resorts, Regional Operations, and MGM China. Its properties feature gaming, hotels, dining, conventions, entertainment, retail, and other amenities. Casino offerings include slots, table games, online sports betting, and iGaming via BetMGM.
In the third quarter, while MGM Resorts (NYSE:MGM) missed analyst estimates in revenue and EPS, it delivered record-breaking numbers, including all-time highs in consolidated net revenue and adjusted property EBITDA at MGM China. Las Vegas saw a 1% revenue increase, a 2% rise in adjusted property EBITDAR, a 3% growth in average daily rate (ADR), and a 250 basis-point rise in occupancy, aided by $37 million in insurance proceeds related to a prior cybersecurity event. Regional properties achieved a 3% revenue increase and a 2% EBITDAR growth, supported by $15 million in insurance proceeds.
MGM China reported a 14% year-over-year revenue increase, a 5% rise in EBITDAR, and a 26% margin, with market share at 15%. BetMGM posted strong digital results, achieving profitability and a 70% rise in first-time depositors. International efforts included a joint venture with Grupo Globo in Brazil and preparations for launches in Osaka, New York, UAE, and Thailand.
Artisan Partners stated the following regarding MGM Resorts International (NYSE:MGM) in its Q3 2024 investor letter:
“We are always on the lookout for companies that are under pressure in some form or fashion as this can create the conditions for an attractive entry price. Though equity markets have made substantial gains over the past year, we have still found select opportunities to put capital to work. Q3 purchases included Warner Music Group, MGM Resorts International (NYSE:MGM) and Polaris.
MGM is a leading owner and operator of casinos in Las Vegas, at regional US locations, in China via its ~56% ownership of MGM China (Macau) and in the metaverse via iGaming and sports gambling app BetMGM. BetMGM is a 50% owned joint venture between Entain and MGM for online sports betting (OSB) and iGaming. Gaming is a good business. MGM generates a high-teens return on equity and consistent free cash flow. Free cash flow is used for stock buybacks and reinvestment into the business. We took advantage of the stock’s pullback in August when MGM reported earnings. Despite healthy results in Las Vegas and Macau, BetMGM continued to report losses, and there was cautious commentary about bookings ahead of the November Formula 1 race. Additionally, China macro concerns have been an overhang. The stock sells for about 13X FY1 earnings.”
6. Vale S.A. (NYSE:VALE)
Market Cap: $43.2 billion
FWD PE Ratio: 4.97
Average Price Target Upside: 41.72%
Vale S.A. (NYSE:VALE) is a Brazilian mining company that produces and sells iron ore, iron ore pellets, nickel, and copper both domestically and internationally. It operates through two segments: Iron Solutions, which focuses on iron ore, pellets, and related logistics, and Energy Transition Materials, which deals with nickel, copper, and by-products like gold, silver, and cobalt.
Vale S.A.’s (NYSE:VALE) stock has experienced a beat-down throughout the year and has severely underperformed the market. However, its Q3 2024 results showed strong operational performance and strategic advancements under new CEO Gustavo Pimenta, who emphasized safety, cost efficiency, portfolio optimization, and stakeholder trust as priorities for Vale’s 2030 vision.
Iron ore production hit its highest level since 2018, with pellet production increasing 13% year-over-year. The Vargem Grande project, adding 15 million tons of capacity, started ahead of schedule, while the Capanema project, 91% complete, is expected to begin operations in early 2025. The company reduced its iron ore cash costs by 17% this quarter, bringing them to $28.6 per ton, and expects to hit the low end of the $21.5-$23 guidance range for 2024.
Moreover, as discussed in our oversold blue chip stocks article, Vale (NYSE:VALE) holds a strong position in global mining, especially in iron ore production. The company’s Value-Based Management (VBM) approach is aimed at driving long-term growth, with a recent review indicating benefits that could extend into 2028 and beyond.
Analysts see Vale’s ability to generate healthy free cash flow (FCF) as key to sustaining its growth. The company’s focus on increasing production, reducing costs, and improving efficiency through VBM initiatives is expected to enhance profitability and strengthen its market position. These strategies should lead to continued earnings growth and greater shareholder value.
5. Baidu, Inc. (NASDAQ:BIDU)
Market Cap: $28 billion
FWD PE Ratio: 7.87
Average Price Target Upside: 43.13%
Baidu, Inc. (NASDAQ:BIDU) is a leading Chinese technology company that operates the largest internet search engine in China. Most of its revenue comes from advertising and search-related services. The company also offers online marketing solutions, such as pay-for-performance and auction-based services, while expanding its focus on AI, especially in autonomous driving technology.
Baidu’s (NASDAQ:BIDU) shares experienced a sell-off on November 21 after it missed its earnings estimates and revenue declined slightly. However, the company is showing promise in its AI segment. Its AI Cloud revenue grew 11% to RMB 4.9 billion, driven by generative AI-related services, which accounted for 11% of AI Cloud revenue.
The company highlighted advancements in its ERNIE AI models, including improved efficiency and new lightweight offerings like Speed Pro and Lite Pro. Daily API calls for ERNIE surged to 1.5 billion in November from 600 million in August, reflecting strong adoption.
Consumer engagement with generative AI features increased, with 70% of Baidu App’s monthly users interacting with such content. Wenku’s AI-enabled features saw its monthly active users exceed 50 million, contributing to a 23% rise in subscription revenue. Baidu also expanded partnerships for ERNIE agents across industries, with notable collaborations including BYD and Samsung.
We also mentioned Baidu’s (NASDAQ:BIDU) latest AI-related developments in our 10 Emerging AI Stocks You Should Keep on Your Radar report. Here is an excerpt from the article:
“On November 18, it was announced that Baidu Smart Cloud has launched initiatives to advance artificial intelligence through partnerships and infrastructure development. In Wuhan’s Qiaokou District, it collaborated with local authorities to unveil the Hanjiangwan Artificial Intelligence Industrial Park and establish the Baidu Smart Cloud (Wuhan) New Quality Productivity Industrial Base. This project will focus on AI innovation, data annotation, and talent training.
In Neijiang High-tech Zone, Baidu (NASDAQ:BIDU) signed a strategic agreement to develop a digital intelligence hub centered on data supply, model innovation, and intelligent applications. These efforts aim to boost the digital economy and foster industrial growth in Southwest China.
The original press release was in Chinese, so there may be minor discrepancies due to translation.”
4. JD.com, Inc. (NASDAQ:JD)
Market Cap: $56.5 billion
FWD PE Ratio: 8.7
Average Price Target Upside: 44.15%
JD.com, Inc. (NASDAQ:JD) is a technology and service provider centered on supply chains in China. The company offers a wide range of products, including electronics, home appliances, groceries, personal care items, pharmaceuticals, and more. It also supports third-party merchants with online marketplace services, marketing, and omni-channel solutions.
The company manages logistics facilities, offers real estate services, and provides technology-driven supply chain solutions. Additionally, the company supports enterprise digitization through integrated technology and data solutions. JD.com (NASDAQ:JD) reported its earnings on November 14, posting a non-GAAP EPADS of $1.24 and revenue of $37.1 billion, outperforming the estimates by $0.20 and $1.02 billion, respectively. The company experienced a sell-off after earnings.
However, Barclays considers the sell-off unjustified as reported by The Fly on November 17. The firm views the company’s Q3 results as strong, highlighting management’s optimistic outlook. The firm believes that the sell-off was unwarranted especially after JD.com (NASDAQ:JD) repurchased over 8% of its shares this year.
Positive factors include accelerating revenue growth, improving monthly trends in Q3, better-than-expected gross and operating margins, and a focus on shareholder returns. Barclays maintained an Overweight rating with a $50 price target.
Ariel Investments stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q3 2024 investor letter:
“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) was the top contributor in the quarter as the People’s Bank of China’s (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company’s retail operations. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment, the company’s strategic positioning and supply chain efficiency improvements, we continue to like its long-term growth prospects.”
3. First Solar, Inc. (NASDAQ:FSLR)
Market Cap: $20 billion
FWD PE Ratio: 14
Average Price Target Upside: 50.23%
First Solar, Inc. (NASDAQ:FSLR) is a solar technology company established in 1999. It provides photovoltaic (PV) solar energy solutions globally. The company specializes in manufacturing cadmium telluride thin-film solar modules, offering a lower-carbon alternative to traditional crystalline silicon PV modules. Its services include project development, operations and maintenance, and selling PV solar systems to third-party clients.
As of Q3, the company has a 73.3 GW backlog with orders extending to 2030. The company aims to reach 14 GW of U.S. production capacity and 25 GW globally by 2026, supported by its Alabama factory and a Louisiana facility expected to start in late 2025. Growing capacity, stable solar panel prices, and a favorable interest rate outlook position it to meet rising demand.
First Solar’s (NASDAQ:FSLR) stock has recently seen a sell-off after missing estimates and US election results. However, many analysts view this in a positive light. After Trump’s presidential win, Roth MKM says cutting the investment tax credit/production tax credit earlier could hurt solar demand as Republicans look for ways to fund tax cuts. However, the 45X tax credit seems safe, which is good news for First Solar (NASDAQ:FSLR) and others. GOP House Speaker Mike Johnson said they would make careful changes to the IRA. With solar stocks falling, Roth suggests this may be a good time to buy First Solar and Nextracker.
2. Biogen Inc. (NASDAQ:BIIB)
Market Cap: $23.33 billion
FWD PE Ratio: 9.6
Average Price Target Upside: 58.33%
Biogen Inc. (NASDAQ:BIIB) is an international biopharmaceutical company specializing in therapies for neurological disorders, rare diseases, and specialized immunology. Its treatments address conditions such as multiple sclerosis, spinal muscular atrophy, Alzheimer’s, and amyotrophic lateral sclerosis. It operates in multiple countries, including the U.S., China, and Germany.
Biogen (NASDAQ:BIIB) struggled in 2024, declining over 40% year-to-date, and has also taken place among our oversold large-cap stocks list due to setbacks with its Alzheimer’s treatment, Leqembi, and declining sales of key multiple sclerosis drugs, Tecfidera and Tysabri. Additional pressures include reduced contract manufacturing and royalty income.
Despite that, analysts maintain a positive sentiment around the company. On November 15, TipRanks reported that Jefferies analyst Michael Yee maintained a Buy rating on the company with a price target of $250. The recommendation stems from positive developments in Europe for Biogen’s (NASDAQ:BIIB) Alzheimer’s drug, Leqembi. The EMA reversed its earlier decision and now recommends Leqembi’s approval for specific patient groups based on genetic markers. This decision is seen as a significant opportunity, as Europe could account for about 30% of the drug’s global sales.
Yee noted challenges, including delays in EU pricing and reimbursement processes, logistical hurdles for patient adoption and diagnostic infrastructure, and the need for the company to improve its product pipeline. Despite these issues, the approval for Leqembi among patient groups showing notable cognitive improvement supports market growth potential.
1. Royalty Pharma plc (NASDAQ:RPRX)
Market Cap: $16.2 billion
FWD PE Ratio: 6.66
Average Price Target Upside: 58.91%
Royalty Pharma plc (NASDAQ:RPRX) is a key player in funding biopharmaceutical innovation and the largest acquirer of biopharmaceutical royalties. It collaborates with a wide range of partners, including academic institutions, research hospitals, non-profits, biotechnology firms, and major pharmaceutical companies.
The company earns royalties based on the sales of leading therapies in its portfolio, which includes over 35 commercial products and 15 development-stage candidates. Royalty Pharma (NASDAQ:RPRX) reported strong performance for Q3 2024 on November 6, with 15% growth in both Portfolio Receipts and Royalty Receipts. Year-to-date capital deployment reached $2.6 billion, including acquisitions of royalties on three novel therapies. Recent highlights include royalties on Cobenfy for schizophrenia, Voranigo for glioma, and Tremfya for ulcerative colitis, all expected to boost long-term growth.
Royalty Pharma (NASDAQ:RPRX) maintains strong financial capacity with $3 billion in available financial resources, including $950 million in cash and equivalents at the end of Q3, ongoing business-generated cash, and access to debt markets. The company holds $7.8 billion in investment-grade debt, with a 3.1% average cost and a 12-year average maturity, aligned with its royalty portfolio duration. Its leverage ratio is approximately 3x total debt to adjusted EBITDA, and it also has $1.8 billion in undrawn credit capacity.
While we acknowledge the potential of Royalty Pharma plc (NASDAQ:RPRX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RPRX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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