In this article, we will be taking a look at 10 Robinhood stocks to buy that are too cheap to ignore. To skip our detailed analysis of these stocks, you can go directly to see the 5 Robinhood Stocks To Buy That Are Too Cheap To Ignore.
Robinhood, a commission-free stock trading and investing company, has gained popularity in the investing world particularly among beginner investors because of the relative ease it offers when it comes to trading stocks. The company and its trading platform have been the subject of controversy among more experienced investors, who argue that it has made more complex trading strategies, like options trading, far too accessible to users and traders who are too inexperienced. However, the accessibility offered by the company has managed to drown out most objections to its existence so far, making Robinhood a trading platform that cannot go ignored by any investor.
The company has long been offering more than just a trading platform to its users. It also offers beginner investors resources to get them acquainted with the art of stock trading. In doing so, it often highlights popular stocks that are currently performing well, or are expected to perform well in the near future. Some of the more renowned stocks mentioned on the platform include General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and DraftKings Inc. (NASDAQ:DKNG). Robinhood has achieved notoriety for its offer of easy access to the investing world. Additionally, it is the company that made free trades a trend in investing today, offering traders the option to make trades without any extra cost. According to the Wall Street Journal, in 2019, the number of user accounts on Robinhood grew to 13 million.
Photo by Mohamed Hadji on Unsplash
Our Methodology
We picked some of the notable cheap stocks currently popular on the Robinhood platform. All but one of these stocks are currently trading at share prices below $20. The stocks are demonstrating immense growth potential based on fundamentals such as EBIT guidance, revenue growth, and business expansions, among more. They are ranked based on the number of hedge funds holding stakes in them, from the lowest to the highest, based on Insider Monkey’s hedge fund data for the third quarter of 2022.
Robinhood Stocks To Buy That Are Too Cheap To Ignore
10. ChargePoint Holdings, Inc. (NYSE:CHPT)
Number of Hedge Fund Holders: 13
Share Price as of November 28: $11.99
ChargePoint Holdings, Inc. (NYSE:CHPT) is an electrical components and equipment company. It provides electric vehicle charging networks and charging solutions in the US and internationally. The company offers hardware, software, and services for commercial, fleet, and residential customers, and it is based in Campbell, California.
A Buy rating was reiterated on ChargePoint Holdings, Inc. (NYSE:CHPT) shares on November 7 by analyst Christopher Souther at B. Riley. The analyst also placed an $18 price target on the stock.
ChargePoint Holdings, Inc. (NYSE:CHPT) is an up-and-coming Robinhood stock expected to perform well through 2025. The company is expanding its top-line growth while narrowing its losses at the same time. The stock has fallen by 72.06% as of this November, making now a good time to buy in while it is cheaply valued. By this October, ChargePoint Holdings, Inc. (NYSE:CHPT) was operating over 200,000 charging points in North America and 16 European Union countries, showing an increase of 64.49% year-over-year in its installed base of network ports. The company’s aggressive approach towards the growth of its business and rising demand for electric vehicles place it in the best position for higher profitability in coming years.
ChargePoint Holdings, Inc. (NYSE:CHPT) was found among the 13F holdings of 13 hedge funds in the third quarter, with a total stake value of $71.7 million.
ChargePoint Holdings, Inc. (NYSE:CHPT), like General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and DraftKings Inc. (NASDAQ:DKNG), is a Robinhood stock elite hedge funds have begun piling into this year.
9. Lucid Group Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 15
Share Price as of November 28: $10.02
Lucid Group Inc. (NASDAQ:LCID) is an automobile manufacturer developing electric vehicle technologies. It is based in Newark, California, and designs, engineers, and builds electric vehicles, EV powertrains, and battery systems. The company operated 20 retail studios in the US by December 2021.
On November 10, R.F. Lafferty’s Jaime Perez reiterated a Buy rating on Lucid Group Inc. (NASDAQ:LCID) shares, alongside placing a $17 price target on the stock.
Lucid Group Inc. (NASDAQ:LCID) is one of the best stocks highlighted on the Robinhood platform. The company is considered to be an undervalued hypergrowth stock in the lucrative EV segment, with significant revenue growth potential. It is expected to hit $750 million in revenues in 2022, while 2023’s revenues are set to rise to $2.6 billion, showing a roughly 250% year-over-year gain. If Lucid Group Inc. (NASDAQ:LCID) produces 400,000 vehicles annually, it could achieve $30 billion in annual revenues just from its car production.
There were 15 hedge funds long Lucid Group Inc. (NASDAQ:LCID) in the third quarter, and 16 hedge funds long the stock in the previous quarter. Their total stake values were $99.5 million and $173 million, respectively.
8۔ Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)
Number of Hedge Fund Holders: 18
Share Price as of November 28: $16.97
Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is a healthcare and biotechnology company operating on the commercial stage. The company works to develop and commercialize therapies for people with rare debilitating, chronic neuromuscular, and neurological diseases in the US. It is based in Coral Gables, Florida.
Joseph Catanzaro, an analyst at Piper Sandler, raised his price target on Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) from $16 to $18 on November 10. The analyst also reiterated an Overweight rating on the stock.
One of the company’s major projects is the drug Firdapse, which treats patients with the lambert-eaton myasthenic syndrome (LEMS). This medicine has seen immense success in the US, with its sales growing by 59.3% year-over-year in the third quarter, bringing in about $57.2 million. The company’s diluted earnings per share are $0.48, trailing three months, and it has a strong profit margin near 39.74%, which widened substantially in the past year. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is considered to be a highly undervalued stock in the market today, with expectations for net income growth.
Deerfield Management was the largest stakeholder in Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) in the third quarter, holding 4.9 million shares worth $62.8 million. In total, 18 funds were long the stock, with a total stake value of $189 million.
7۔ MFA Financial, Inc. (NYSE:MFA)
Number of Hedge Fund Holders: 19
Share Price as of November 28: $11.11
MFA Financial, Inc. (NYSE:MFA) is a mortgage real estate investment trusts company operating in the US and based in New York. The company invests in residential mortgage assets including non-agency mortgage-backed securities, agency MBS, and credit risk transfer securities, among more.
RBC Capital’s Kenneth Lee holds a Sector Perform rating on MFA Financial, Inc. (NYSE:MFA) shares as of November 25.
Being a real estate company, MFA Financial, Inc. (NYSE:MFA) has a significant dividend payout ratio of 123.4%. The company announced a $0.44 per share quarterly dividend this September. Its capacity for generating a high yield got a boost through its acquisition of Lima One, a US-based premier lender. Now is the perfect time to buy MFA Financial, Inc. (NYSE:MFA) shares at a bargain since the company’s stock price has been on the decline since its reverse stock split in April. Since the company is a specialty finance corporation with a strong portfolio including assets such as 43% of non-qualified mortgage loans and 23% of business purpose loans, it is only a matter of time before the stock begins an upwards climb again.
In total, 19 hedge funds were long MFA Financial, Inc. (NYSE:MFA) in the third quarter. Their total stake value was $98.2 million. In comparison, 15 hedge funds were long the stock in the previous quarter, with a total stake value of $152 million.
6۔ Plug Power, Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 32
Share Price as of November 28: $15.73
Plug Power, Inc. (NASDAQ:PLUG) is an electrical components and equipment company based in Latham, New York. The company delivers end-t0-end clean hydrogen and zero-emissions fuel cell solutions for supply chain and logistics applications, on-road EVs, stationary power markets, and others in North America and internationally.
P.J. Juvekar at Citigroup reiterated a Buy rating on Plug Power, Inc. (NASDAQ:PLUG) shares on November 10, while placing a $20 price target on the stock.
This November, analysts began considering the time as ripe for investing in Plug Power, Inc. (NASDAQ:PLUG). The company has posted a five-year total return CAGR of 41.2%, outperforming the broader market which was on a steep decline of 43.39%. Plug Power, Inc. (NASDAQ:PLUG) is also well-capitalized with a net cash position of $2.29 billion. Analysts hold revenue estimates for the company through 2026 much closer to the company’s own guidance of $5 billion, as they see more credibility in its ability to execute its promises.
Citadel Investment Group was the largest stakeholder in Plug Power, Inc. (NASDAQ:PLUG) in the third quarter, out of a total of 32 hedge funds long the stock. The fund held 118.5 million shares in the company. The total stake value of all hedge funds long the stock was $373 million.
Plug Power, Inc. (NASDAQ:PLUG), like General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and DraftKings Inc. (NASDAQ:DKNG), is a cheap Robinhood stock to good to pass up this year.
Click to continue reading and see the 5 Robinhood Stocks To Buy That Are Too Cheap To Ignore.
Suggested articles:
Disclosure: None. 10 Robinhood Stocks To Buy That Are Too Cheap To Ignore is originally published on Insider Monkey.