As 2019 drew to a close, Robinhood had over 10 million user accounts on its books. Many people flock to the app for its commission-free trades, allowing them to get involved in stock market investing without some of the costs. With so much activity flowing through the company, Robinhood can easily track which investments are popular. Here’s a look at the top five investments, based on Robinhood user popularity (as of May 21, 2020).
Analysts have Ford listed as a solid buy, causing the somewhat low-cost stock to trend upward. Over 848,000 users decided to take a risk on the auto manufacturer, adding Ford to their portfolio or simply holding onto the stock.
Before the coronavirus pandemic, Ford danced mainly between the $8 and $12 marks. Considering its sitting below $6, that may make it look like a bargain to new investors who think the automaker will bounce back.
GE has been through its share of COVID-19 ups and down, but that doesn’t mean investors aren’t willing to take a chance on the company. More than 766,000 Robinhood App users have the company in their portfolio.
Currently, GE stock is available at around $6.50. Plus, it’s rated as a strong buy, according to the Robinhood analyst ratings, which may be bolstering its appeal with those who are looking for potential bargains with bounce-back potential.
Disney took some major hits as the COVID-19 pandemic delayed movie releases and led to park closures. However, the company is well-positioned to recover, recently reopening its Shanghai park and making significant strides in Florida. Plus, it still owns valuable properties, including Marvel, and has had success with its streaming service, Disney+.
While a price around $118 might not seem like a bargain, Disney is listed as a strong buy on Robinhood. Plus, the company was significantly higher before the pandemic, coming in near $150. Apparently, at least 550,000 investors think the company has what it takes to weather the storm.
4. American Airlines
Airlines felt the pain when the coronavirus made travel incredibly unappealing, if not completely impossible in some areas. While American Airline’s stock took a tumble (sitting near $9.90), investors seem to have faith that the industry and airline will recover as the pandemic calms.
Plus, the price reduction could make the stock seem like a bargain, suggesting that the travel industry improves in a reasonable amount of time. Over 530,000 Robinhood App users have the company in their portfolio, and the analyst rating has the airline listed as a solid buy.
5. Delta Airlines
Like American Airlines, Delta Airlines saw its stock value tumble in response to the pandemic. Today, it’s considered a strong buy, with a stock price situated near the $23 mark. In total, nearly 519,000 Robinhood App investors agree, adding or keeping the company in their portfolio.
It’s possible investors and analysts believe that the price dip won’t be long-term, and there’s a reasonable chance, though no guarantee, that they will be right in the end. However, it’s mainly dependent on the recovery of the larger travel industry, and only time will tell if or when that will ultimately occur.
Have you invested in any of the stocks above? Do you think focusing on the top 5 is a smart move for new investors? Share your thoughts in the comments below.
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