Discount broker Robinhood Markets (HOOD) went public in July 2021, in the heart of the pandemic. Its stock soared at first, jumping 56% in a week shortly after its IPO. As the pandemic waned so did Robinhood stock. Counting it out then would have been a mistake.
Robinhood stock closed at 11.22 Thursday, up 2% for the day. Meanwhile it got a huge Relative Strength (RS) Rating upgrade from 66 to 82 Thursday. The upgraded 82 RS Rating means that Robinhood stock tops 82% of all stocks for price performance over the past year.
Additionally, market research shows that the stocks that go on to make the biggest gains typically have an RS Rating of over 80 in the early stages of their moves.
Robinhood Stock One To Watch
The Menlo Park, Calif.-based brokerage is making progress but it has work to do, especially in earnings. It’s recent progress though makes it one to watch.
Robinhood stock has a respectable 85 Composite Rating out of 99, and a less-impressive 68 Earnings Per Share Rating. Look for that rating to improve. The company’s earnings have improved in recent quarters. One standout rating is its B Accumulation/Distribution Rating on an A+ to E scale. The B rating shows that mutual funds, university funds and the like are fairly heavy investors in Robinhood stock.
While Robinhood stock is not near a proper buy point right now, see if it manages to form and break out of a proper chart pattern.
Sales Strong, Profit Coming Along
Robinhood’s sales have grown fast while it moves toward profitability. Last quarter Robinhood Markets reported a 9-cent loss, improved from a 20-cent loss a year earlier. The prior quarter it reported a 3-cent profit, powerfully reversing from a 34-cent loss the same quarter a year earlier.
Revenue climbed 29% to $467 million last quarter. The prior two quarters sales rose 47% and 53%. The next quarterly numbers are expected on or around Feb. 13.
Robinhood stock holds the No. 12 rank among its peers in the 32-stock Finance-Investment Banking/Brokers industry group. Interactive Brokers (IBKR) and Ameriprise Financial (AMP) are among the group’s highest-rated stocks.
When searching for the best stocks to buy and watch, one signpost to be aware of is a stock’s price strength relative to all other stocks. IBD’s proprietary Relative Strength Rating identifies share price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price performance over the last 52 weeks stacks up against all the other stocks in our database.
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