In this article, we discuss the 5 best Robinhood stocks under $20. If you want to read our detailed analysis of these companies, go directly to the 10 Best Robinhood Stocks Under $20.
5. American Airlines Group Inc. (NASDAQ:AAL)
Number of Hedge Fund Holders: 25
Price as of September 16: $18.89
American Airlines Group Inc. (NASDAQ:AAL) ranks 5th on the list of 10 best Robinhood stocks under $20. The Texas-based airline owns and operates a mainline fleet of 855 aircraft. The company was formerly known as AMR Corporation and was founded in 1930.
On August 11, Redburn Partners initiated a Buy recommendation on American Airlines Group Inc. (NASDAQ:AAL).
The company has a market cap of $12.3 billion. In the second quarter of 2021, American Airlines Group Inc. (NASDAQ:AAL) reported an EPS of -$1.69, beating estimates by $0.04. The company’s revenue in the second quarter was $7.5 billion, up 87% quarter over quarter, and beat revenue estimates by $16.02 million. The stock has gained 20%, year to date, and 46% in the past twelve months.
At the end of the second quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $620 million in American Airlines Group Inc. (NASDAQ:AAL), down from 32 in the previous quarter worth $561 million.
4. Nokia Corporation (NYSE:NOK)
Number of Hedge Fund Holders: 26
Price as of September 16: $5.62
Nokia Corporation (NYSE:NOK) is a tech company based in Finland that ranks 4th on the list of 10 best Robinhood stocks under $20. Nokia Corporation (NYSE:NOK) offers 5G network solutions to enterprise clients. The company also sells smartphones, laptops, and streaming devices to retail consumers.
On September 8, Credit Suisse analyst Achal Sultania maintained a Neutral rating on Nokia Corporation (NYSE:NOK) and increased his price target for the stock to €5.05 from €4.45. Meanwhile, Nokia Corporation (NYSE:NOK) stated on September 9 that it has been chosen to build US cellular’s independent 5G core network, with completion due by the end of 2022.
The company has a market cap of $33.4 billion. In the second quarter of 2021, Nokia Corporation (NYSE:NOK) reported an EPS of $0.11, beating estimates by $0.05. The company’s second-quarter revenue was $6.32 billion and beat revenue estimates by $193.68 million. The stock has gained 7.4% in the past three months.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $494 million in Nokia Corporation (NYSE:NOK), up from 21 in the previous quarter worth $352 million.
3. GoPro, Inc. (NASDAQ:GPRO)
Number of Hedge Fund Holders: 28
Price as of September 16: $9.66
Action camera manufacturer GoPro, Inc. (NASDAQ:GPRO) ranks 3rd on the list of 10 best Robinhood stocks under $20. GoPro, Inc. (NASDAQ:GPRO) sells action cameras, drones, wearable mounts, and accessories globally. In addition, the California-based camera maker provides subscription-based services on its cloud-based storage solutions, mobile app, and video-editing app.
GoPro, Inc. (NASDAQ:GPRO) saw its stock rise 1.83% on August 31 after the action camera company received a license from the US Patent And Trademark Office for systems and methods for calculating projected risk for an unmanned drone vehicle’s flight route.
The company has a market cap of $1.43 billion. In the second quarter of 2021, GoPro, Inc. (NASDAQ:GPRO) reported an EPS of $0.12, beating estimates by $0.08. The company’s revenue in the second quarter was $249.6 million, an increase of 86% year over year, and beat revenue estimates by $17.28 million. The stock has gained 148.5% in the past twelve months.
At the end of the second quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $413 million in GoPro, Inc. (NASDAQ:GPRO), down from 36 in the previous quarter worth $395 million.
In its Q4 2020 investor letter, Roubaix Capital LLC stated that GoPro, Inc. (NASDAQ:GPRO) should benefit from the consumer rebound. Here is what the fund said:
“Companies like GoPro (GPRO) should benefit from the consumer rebound, but also have their own unique drivers of value over the next 2+ years. In the case of GPRO, the company launched its newest action camera, the GoPro9, under the umbrella of a new business model. The company offers a discount on the camera when customers purchase a subscription agreement that comes with additional services and benefits. The uptake of the subscription has been strong to date and offers the company a line of sight to a higher margin and more predictable revenue stream. The stock’s low double-digit earnings multiple remains undemanding. We have seen this type of transformation play out in numerous situations in software, hardware and even retail companies such as RH. We see GPRO the following suit and expect a return to travel later this year to be another reason for consumers to buy a new camera as they head back out on vacation.”
2. Zynga Inc. (NASDAQ:ZNGA)
Number of Hedge Fund Holders: 49
Price as of September 10: $7.99
Zynga Inc. (NASDAQ:ZNGA) is a mobile videogame company based in San Francisco that ranks 2nd on the list of 10 best Robinhood stocks under $20. Zynga Inc. (NASDAQ:ZNGA) develops and licenses videogames played on Android and iOS devices. The company was formerly known as Zynga Game Network Inc. and was founded in 2010.
Despite a shortfall on bookings, BMO Capital analyst Gerrick Johnson kept an Outperform rating on Zynga Inc. (NASDAQ:ZNGA) and maintained his price target for the stock at $11 per share on August 9, noting that the firm maintained its 2021 EBITDA projection.
The company has a market cap of $9.6 billion. In the second quarter of 2021, Zynga Inc. (NASDAQ: ZNGA) reported an EPS of $0.10, beating estimates by $0.01. The company’s revenue in the second quarter came in at $720 million, an increase of 59% year over year, and beat revenue estimates by $40.14 million. In addition, Zynga Inc. (NASDAQ: ZNGA) reported an all-time high of 205 million average mobile MAUs, up 194% year over year. The stock has gained 5.4% in the past twelve months.
At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.27 billion in Zynga Inc. (NASDAQ: ZNGA), up from 47 in the previous quarter worth $1.14 billion.
In its Q4 2020 investor letter, Artisan Partners Limited Partnership mentioned Zynga Inc. (NASDAQ:ZNGA) and emphasized their views on the company. Here is what the fund said:
“We also added to our position in Zynga. Our multi-year investment campaign in Zynga has been based on a new management team’s ability to drive steady growth in the company’s base portfolio of games, expand margins, reinvigorate the new game development pipeline and use its strong balance sheet to acquire complimentary games and studios. Shares have been pressured in recent quarters, presumably because of investor concerns about the company’s moderating growth rate and Apple’s pending new privacy policy which will make it more difficult for Zynga to both efficiently acquire new players and sell advertising in its games. We believe the company has multiple growth levers it can pull in the periods ahead, including the rollout of new games, acquisitions, further penetration into international markets, and entry into new gaming categories, to name a few. Furthermore, our research suggests the Apple privacy policy change is manageable for larger mobile game developers such as Zynga. Given our strong conviction in the profit cycle, we used recent weakness to add to our position.”
1. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 55
Price as of September 16: $13.40
Topping the list of 10 best Robinhood stocks under $20 is Michigan-based automobile manufacturer Ford Motor Company (NYSE:F). The automobile company manufactures and sells a wide range of vehicles, including trucks, utility vehicles, and luxury vehicles.
On September 8, Benchmark analyst Michael Ward maintained a Buy rating on Ford Motor Company (NYSE:F) with a price target of $18 per share.
The company has a market cap of $51 billion. In the second quarter of 2021, Ford Motor Company (NYSE:F) reported an EPS of $0.13, beating estimates by $0.10. The company’s revenue in the second quarter grew 37.8% year over year to $26.8 billion. The stock has increased by 44% year to date and by 81% in the last year.
At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $2.10 billion in Ford Motor Company (NYSE:F), up from 49 in the previous quarter worth $2.19 billion.
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