These Are The Best Robinhood Stocks To Buy Or Watch Now

Buying a stock is deceptively easy, but purchasing the right stock at the right time without a proven strategy is incredibly hard. So what are the best Robinhood stocks to buy now or put on a watchlist?




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At the moment, Google parent Alphabet (GOOGL), auto giant Facebook (FB) and PayPal (PYPL) are standout performers. Unlike GameStop (GME) and AMC Entertainment (AMC), which have been hitting the headlines of late, these stocks offer a mix of solid fundamental and technical performance.

Best Robinhood Stocks To Buy: The Crucial Ingredients

There are thousands of stocks trading on the NYSE and Nasdaq. But to generate big gains you have to find the very best. The best Robinhood stocks for investors will be those that offer a mix of earnings and stock market performance.

The CAN SLIM system offers clear guidelines on what you should be looking for. Invest in stocks with recent quarterly and annual earnings growth of at least 25%. Look for companies that have new, game-changing products and services. Also consider not-yet-profitable companies, often recent IPOs, that are generating tremendous revenue growth.

The Market Is Key When Buying Robinhood Stocks

A key part of the CAN SLIM formula is the M, which stands for market. Most stocks, even the very best, follow the market direction. Invest when the stock market is in a confirmed uptrend and move to cash when the stock market goes into a correction.

The stock market pulled back last week, with inflation fears and concerns about the rise of the delta variant of the coronavirus weighing on the market.

The broad S&P 500 and the tech-heavy Nasdaq fell away from record highs.  In addition, the Dow Jones Industrial lost ground on the previous week’s record closing high, though it stayed clear of the key 50-day moving average. Other indicators are sending more-negative signals, from declining market breadth to leading stocks coming under pressure.

It is now a time to be very careful about making any new buys, and to make a defensive game plan for each stock you own. Stay disciplined and flexible for the market direction could change at any moment.

Now is a good time to be building a watchlist consisting of fundamentally strong stocks that have built sound chart patterns. The stocks featured below are potential candidates.

But remember, things can quickly change when it comes to the stock market. Make sure you keep a close eye on the market trend page here.

Best Robinhood Stocks To Buy Or Watch

Now let’s look at Google stock, Facebook stock and PayPal stock in more detail. An important consideration is that these stocks are solid from a fundamental perspective, while institutional ownership is also strong. They are also part of the Robinhood Top 100 Stocks, the platform’s most popular stocks among traders.

Google and PayPal are both members of IBD Leaderboard and IBD Long-Term Leaders.

Google Stock

Google parent Alphabet is at the top of a buy zone after passing a 2,431.41 flat base buy point. Google stock held up well amid Thursday’s pullback, which is encouraging.

The relative strength line for GOOGL stock is around record highs. This gauges a stock’s performance compared to the S&P 500.

GOOGL stock has a perfect IBD Composite Rating of 99. That puts it in the top 1% of stocks tracked overall. Earnings outshine stock market performance, with its EPS Rating a top notch 95 out of 99.

Earnings have grown by an average of 50% over the past three quarters. This is double the 25% sought by CAN SLIM investors.

The firm is getting set to to announce earnings on July 27th after the close. While some may be tempted to buy a stock ahead of a potential earnings move, investors should remember IBD recommends using options as a strategy to limit risk. It is a way to capitalize on the upside potential of a stock’s move around earnings, while reducing the downside risk.

Analysts see strong growth ahead, with Google earnings per share expected to explode 66% in 2021, and then growing by a further 8% in 2022.

The tech giant has a Relative Strength Rating of 88. That means it has outperformed 88% of stocks tracked over the past 12 months in terms of price performance. Recent performance is strong, with Google stock rising around 45% so far in 2021. This far outstrips the S&P 500’s gain of just over 15%.

Big money has been snapping up Alphabet stock of late. This is reflected in its Accumulation/Distribution Rating of B-. This reflects moderate buying over the past 13 weeks.

Google stock was boosted after the firm posted first-quarter earnings and revenue that crushed analyst estimates. YouTube advertising revenue topped expectations, while the company also authorized additional GOOGL stock buybacks.

In the March quarter, Alphabet repurchased $11.39 billion of its GOOGL stock, up from $8.5 billion in the year-earlier period. Alphabet had roughly $4 billion left in a share repurchase program. The new buyback authorization brings that to about $54 billion.

The internet giant’s core search advertising business also continued to rebound, though the coronavirus pandemic still pressures sectors such as travel.

While Google has expanded into cloud computing and consumer hardware, digital advertising still makes up the lion’s share of revenue. Google announced in early March that it will stop employing web browser-tracking technology for the purpose of selling advertising. Earlier, Google said it would phase out third-party cookies.

Google plans to utilize “contextual” technology that enables advertisers to target aggregated groups of consumers with similar interests, such as travel, sports or fashion.

However the firm recently announced it is delaying its phaseout of third-party internet tracking cookies used by the advertising industry. In a blog post, Google said it would delay its phaseout until mid-to-late 2023. It had planned to end support for third-party cookies in its Chrome web browser in early 2022.

Facebook Stock

Facebook stock is looking to offer a new entry point as it pulls back to the 10-week line.

The relative strength line for FB stock has generally been trending upward, but has slipped somewhat in recent sessions. It remains a fair way below  its July 2020 peak.

So far in 2021, Facebook stock has gained around 25%.

Facebook stock has a perfect IBD Composite Rating of 99. At the moment its earnings performance is the clear standout feature, with stock market performance lagging. Its fortunes are improving on this score however.

Its EPS Rating of 96 is very strong, with earnings growing by an average of 53% over the past three quarters. This is more than double the 25% growth sought by the CAN SLIM cognoscenti over this time period.

Earnings are seen swelling 34% in 2021, before growing by a further 16% in 2022.

This performance has won Facebook stock favor among institutional investors. Its  Accumulation/Distribution Rating sits at B-. This represents moderate buying among institutions over the past 13 weeks. In total, 47% of its stock currently held by funds.

Facebook stock got a boost at the end of April after the firm beat analyst estimates on the top and bottom lines. It could get another when the firm reports Q2 earnings on July 28

The company expects Q2 revenue growth to “remain stable or modestly accelerate” compared to the the year-ago period. However, in the second half of this year Facebook expects “year-over-year total revenue growth rates to significantly decelerate sequentially as we lap periods of increasingly strong growth.”

The company reported daily active users of 1.88 billion. That’s up 8% from the year-ago period but slightly below estimates of 1.89 billion, according to FactSet. Monthly active users rose 10% to 2.85 billion, vs. estimates of 2.86 billion.

In addition, daily active users in the U.S. and Canada remained flat at 195 million for the second consecutive quarter.

“We continue to expect increased ad targeting headwinds in 2021 from regulatory and platform changes, notably the recently-launched iOS 14.5 update, which we expect to begin having an impact in the second quarter,” Facebook said. “This is factored into our outlook.”

Facebook stock popped on March 20 after CEO Mark Zuckerberg struck a more optimistic tone on the new user privacy update from Apple (AAPL) during in an interview with social networking app Clubhouse.

“The reality is that I’m confident that we’re gonna be able to manage through that situation well and we’ll be in a good position,” Zuckerberg said. “I think it’s possible that we may even be in a stronger position if Apple’s changes encourage more businesses to conduct commerce on our platforms.”

PayPal Stock

PayPal stock has pulled back below a buy zone from a cup-with-handle base. The buy point is 296.11. In June, PYPL cleared a 277.96 early entry.

The relative strength line has been improving, reaching a four-month high, but not yet at the all-time high reached in mid-February. The payments stock has a long history of outperforming the broader market, a key reason why it is on the IBD Long-Term Leaders list. It’s also on Leaderboard.

PayPal stock has seen its Composite Rating come back strongly, and it now sits at a very strong 97. Stock market performance is improving, and PYPL stock is now up almost 31% so far this year.

Earnings are the stock’s key strength, with its EPS Rating coming in at 98 out of 99. EPS has grown by an average of 52% over the past three quarters. This reflects the current trend towards cashless transactions amid the Covid-19 pandemic.

When PayPal reported March-quarter earnings, revenue and total payment volume topping analyst estimates. EPS popped by 85% to $1.22 as e-commerce continued to boom amid the coronavirus pandemic. Revenue vaulted 31% to $6.03 billion. The strong results have been helping the stock advance.

It will be looking to get a similar boost when it posts earnings on July 28 after the close.

Total payment volume processed from merchant customers jumped 50% to $285 billion. This was better than the $264.9 billion projected by analysts.

The company also said it added 14.5 million net new active accounts worldwide in the December quarter. Well known for its online checkout button, PayPal had 392 million active accounts worldwide as of March 31.

Meanwhile PayPal is looking into new growth avenues. It is now fighting it out with payments rival Square (SQ) in the cryptocurrency space. The two payment companies are marketing apps that let shoppers get discounts, make installments and buy cryptocurrencies.

PayPal‘s Venmo and the Square Cash App started off as person-to-person money-transfer services for family members and friends. Now they’ve evolved into broad consumer financial services apps fueling growth for these leaders in the burgeoning field of digital payments.

In late November, PayPal launched a cryptocurrency trading service, allowing clients to buy and sell Bitcoin. In addition, PayPal customers will also be able to use cryptocurrencies to shop at the 28 million merchants on its network starting in early 2021, the company said.

PayPal also announced cryptocurrency trading on Venmo. The new feature allows customers to use these three types of cryptocurrency, plus Bitcoin Cash, to view crypto trends and make transactions. The rollout has already started, and will be available for all customers directly in the Venmo app.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.

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