The 7 Top Robinhood Stocks Millenials are Buying

Millennial Traders are Buying but Should You?

Online broker Robinhood is drawing a lot of attention as Millenials enjoy the ease of buying stocks right from their smartphone. These popular stocks I highlight are not indications for you to buy them unless you do your due diligence and they fit in your portfolio. Some of these stocks will have a long future ahead of them and others can be risky.

Robinhood emerged as the first zero commission broker in April 2013. Other brokerage companies followed over the past few years but the platform still boasts many followers with 13 million accounts. Even though there are some successes with this platform there have also been some horrible experiences.

The tops seven stocks are Aurora Cannabis, Microsoft, Apple, Delta Air Lines, Walt Disney, American Airlines, and Ford.

The stock prices are quoted on the close of business on July 15, 2020. The price you see on these stocks may differ.

Aurora Cannabis (ACB)

This cannabis stock has had better days but the recent decline has drawn some optimism from some traders. Weak revenues and negative profitability has chased some traders away. ACB has lost more than half its value this year.

The company expects improvement as they reached their goal for selling, general, and administrative expenses. Also, ACB is closing five facilities over the next two quarters. Analyst Owen Bennet sees the moves ACB is doing as positive but still gives the stock an Underperform rating and a $14 price target.

The majority of analysts are more bullish than Bennet but they are not as enthusiastic as Robinhood traders. Out of 14 analysts, three are Buys and 11 rate the stock as a Hold.

Microsoft (MSFT)

Bill Gates’ computer application Microsoft is ranked №7 among Robinhood stocks. Microsoft is one of the dominant tech stocks with cloud computing, consumer electronics, software, and personal computers. Microsoft is also one of the few companies that exceed a trillion-dollar market cap.

The company may save some money as they announced they would close all retail stores as a major change to their retail strategy. Since many of their products are sold online this may prove to be a great benefit especially now as the corona virus is limited buyers from traveling outdoors.

Analysts are supportive of the Robinhood traders on this stock as 21 rate Microsoft a Buy, one, and one Sell. Microsoft has a $220 price target.

Apple (AAPL)

Another tech company makes the list of top Robinhood stocks and Wall Street. Apple has a few upgrades lined up that are bringing a lot of attention to the company. With an update to the Apple Watch OS7, the watch supports sleep tracking and Watch Faces.

Apple Pay will offer more features as seamless capabilities and a better digital experience.

Apple computers will also use their own processors instead of INTEL processors in their Apple MAC products.

The stock has a $320 price target and it’s expected to see price target increases or a ratings downgrade. AAPL has received 27 Buys, six, and one Sell over the past three months.

Delta Air Lines (DAL)

Airlines were hit hard this year but Delta Air Lines is performing stronger than other airlines. Delta is off 56% but has received a lot of praise from stock analysts.

The airline has a lot of liquidity of roughly $14 billion as this past quarter ended which is possibly the highest for this airline’s history. With the CARES Act program, Delta has to decide by September 30 to add $4.6 billion to its cash position.

Delta was also able to reduce its June 2020 operating cost by 50% but this shows Delta’s flexibility as compared to its competitors.

Analysts have nine Buys and three Holds for a Strong Buy rating. Delta stock has a $47 price target.

Walt Disney (DIS)

The virus has hit Disney hard this year as their theme parks closed. Disney is having a challenging year as many of its operations involve people. Plans to reopen this month have been delayed and movies are also at a standstill. Walt Disney bought Marvel Studios several years ago. Disney also owns ESPN and as you have seen sports were postponed with basketball looking to restart soon. Plans to reopen Disney are currently in discussion.

Overall Disney has a neutral rating among analysts with 11 Hold and two Sell ratings along with nine Buy ratings. Disney has a price target of $126.

American Airlines (AAL)

American Airlines doesn’t have quite favorable ratings as Delta Air Lines as analysts don’t have as much support for American as compared to Delta.

American Airlines is taking advantage of the current financial situation and planning to refinance a March loan. Analysts see American has a deep payment and loss record and the outlook is not clear for several years. The company is enjoying the cash surplus to help them get through these times. The company is expecting a $10.8 billion pretax loss this year and $7.7 billion over the next three years.

Analysts give an Underperform rating and have a price target of $5 for AAL. AAL has three BUY ratings along with seven Sells.

Ford (F)

The top stock in Robinhood is Ford which saw its price drop and cutting its dividend when the corona virus hit. Ford has $8 billion debt on its books and most of the cash is not used for future plans which investors expected. About $1 billion is used for future expenditures.

The recent debt will eat at cashflow and take away value from the company. Analysts give the company a Hold rating with a $5 price target.

Over the past three months, analysts give the company six Holds, three Buys, and two Sells.

The writer does not own any of these stocks.

For other stock articles, check out the following:

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Tom Handy is a top Investment and Bitcoin writer on Medium, and father of two kids. He retired from the Army and sits on several non-profit boards. Tom is the top Yelper in his community and a top Google Guide. He’s on several social media channels and you can find him on Twitter @tomhandy1 and Instagram @tomhandy1.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.

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