While many pro investors ignore the Robinhood crowd, labeling them as undisciplined investors because of their speculatory bets, there’s nothing wrong with a stock being popular on a trading platform, even without enough fundamental strength. Even though every Robinhood-listed stock may not pan out and become winners in the long term, there could be certain high-quality stocks that possess the right ingredients, along with popularity, to deliver market-beating returns.
Robinhood’s list of popular stocks offers a peek into the stocks that millennials are focusing on and are bullish about. Some of these stocks are on the cutting edge of innovation while also having a proven track-record of past performance. As major tech stocks are pretty expensive right now thanks to their ability to capitalize on the pandemic, betting on some low-priced technology stocks from the Robinhood list that possess enough growth catalysts could result in exponential returns.
Robinhood stocks like Ericsson ADS (ERIC), Zynga, Inc. (ZNGA), and GoPro, Inc. (GPRO) have strong fundamentals and is poised for future growth. These technology stocks are making waves in their respective sectors and are beating the path to become market leaders.
Ericsson ADS (ERIC)
ERIC provides communication services and technology. The company’s offerings include services, software, and infrastructure for broadband and telecommunications. The stock closed yesterday’s trading session at $10.9, gaining 38% year-to-date.
The company’s 5G NR carrier solution is expected to be launched by the fourth quarter, and will see a global rollout in 2021. ERIC, in collaboration with China Telecom, has recently successfully tested the first 5G standalone data call using ERIC’s spectrum sharing. This will pave the way for wider commercial deployment of 5G in China. ERIC has partnered with Belgium-based Proximus for providing 5G core implementation and the modernization of their 4G core.
ERIC is expected to witness revenue growth of 14.2% in the next quarter and 6.3% in 2021. The company’s EPS is estimated to grow 61.5% in the next quarter and at a rate of 24.5% per annum over the next five years.
How does ERIC stack up for the POWR Ratings?
B for Trade Grade
B for Buy & Hold Grade
B for Peer Grade
B for Overall POWR Rating
The stock is also ranked #7 out of 35 stocks in the Telecom – Foreign industry.
Zynga, Inc. (ZNGA)
ZNGA develops and operates several online video games that can be played through the internet, social media, and mobile platforms. The company has operations in the United States, Europe, and Asia. The stock was priced at $8.99 at the close of trading hours on October 19th, gaining 46.9% year-to-date.
ZNGA has recently acquired Rollic, an Istanbul-based game developer, which has spearheaded the company’s foray into hyper-casual mobile games. This move will also help the company diversify its advertising revenue and give it access to an extensive network of game developers. The company has also acquired Peak, which is the creator of popular games such as Toon Blast and Toy Blast.
ZNGA is expected to witness revenue growth of…
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