12 Best Up and Coming Stocks to Buy According to Wall Street Analysts

10. Robinhood Markets Inc. (NASDAQ:HOOD)

Average Upside Potential as of March 21: 54.60%

Number of Hedge Fund Holders: 79

Robinhood Markets Inc. (NASDAQ:HOOD) operates a financial services platform that enables users to invest in a variety of assets. These include stocks, ETFs, options, gold, and cryptocurrencies. It offers features like fractional trading, recurring investments, and margin access, alongside educational resources such as news digests, online guides, and in-app tutorials. It also provides credit and cash card services and crypto wallets.

The company’s revenue surged in 2024 due to its active trader platform and new premium offerings. Q4 2024 revenue alone exceeded $1 billion, while full-year revenue surpassed $3 billion. This was a 58% increase from 2023. This growth was fueled by products like the Robinhood Gold Card, Robinhood Legend, and its expanding derivatives business, with the recently launched Robinhood Legend already generating $50 million in annualized trading revenue.

Customer engagement and investment on the platform also saw significant growth. Total customer deposits reached a record $50 billion, which was nearly a 50% increase. Robinhood Markets Inc.’s (NASDAQ:HOOD) premium Gold service also experienced an 80% increase in subscribers, with over 30% of new customers in Q4 opting for the service, despite Gold representing only 10% of the overall customer base.

Robinhood Markets Inc.’s (NASDAQ:HOOD) strong millennial user base, rapid deposit growth, and potential for expanded services and margin expansion make it a promising investment for the Artisan Mid Cap Fund. The Fund stated the following in its Q4 2024 investor letter:

“During the quarter, we initiated new GardenSM positions in US Foods, Pure Storage and Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood has emerged as the go-to-trading platform for millennials, boasting approximately 25 million accounts (versus Charles Schwab’s 34 million). The company’s user base skews younger, with deposits growing significantly faster than the broader industry due to several drivers, including the rise of self-directed trading, the generational wealth transfer to millennials and increasing market share. As Robinhood’s customer base matures and accumulates wealth, we believe the company is well positioned to expand its product offerings to meet evolving financial needs. Furthermore, management’s focus on profitable growth and a 90% fixed cost structure suggests meaningful margin expansion potential.”