As of the end of 2019, Robinhood had over 10 million user accounts on its books. Lots of people flock to the app for their commission-free trades so they can get involved in stock market investments for no part of the cost. With so much activity in the company, Robinhood can easily keep track of 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 given Ford a solid buy, which is causing the somewhat cheap stocks to see an upward trend. Over 848,000 users decided to take a risk on the automaker, add Ford to their portfolio, or just hold onto the stock.
Before the coronavirus pandemic, Ford danced mostly between $ 8 and $ 12. When you consider that it's under $ 6, it might look like a bargain to new investors who believe the automaker will bounce back.
GE has been going through its ups and downs in its stake in COVID-19, but that doesn't mean investors are unwilling to take a risk on the company. More than 766,000 users of the Robinhood App have the company in their portfolio.
GE stock is currently available for around $ 6.50. Additionally, it is rated as a strong buy, according to Robinhood analyst ratings, which could add to its appeal to those looking for potential bargains with bounce-back potential.
Disney achieved some huge hits when the COVID-19 pandemic delayed movie releases and led to park closings. However, the company is well positioned to recover. It recently reopened its Shanghai Park and made significant progress in Florida. It also still owns valuable real estate, including Marvel, and has had success with its Disney + streaming service.
While a price tag around $ 118 doesn't necessarily seem like a bargain, Disney is listed as a strong buy on Robinhood. Plus, before the pandemic, the company was significantly larger, valued at nearly $ 150. Apparently, at least 550,000 investors believe the company has what it takes to weather the storm.
4. American Airlines
Airlines felt the pain as the coronavirus made travel incredibly unattractive, if not completely impossible in some areas. As American Airline stock fell (near $ 9.90), investors appear to believe that the industry and the airline will rebound as the pandemic settles down.
Additionally, the price cut could make the stock look like a bargain, suggesting the travel industry is improving in a reasonable amount of time. Over 530,000 Robinhood app users have the company in their portfolio, and the analyst rating has listed the airline as a solid buy.
5. Delta Airlines
As with American Airlines, Delta Airlines' stock fell in response to the pandemic. Today it is viewed as a strong buy, with the share price nearing the $ 23 mark. In total, nearly 519,000 Robinhood app investors approve of adding or keeping the company in their portfolio.
It is possible for investors and analysts to believe that the price decline will not be long-term, and there is a reasonable chance, although no guarantee, that they will be right in the end. However, it largely depends on the recovery of the larger travel industry, and only time will tell if or when it will ultimately happen.
Have you invested in any of the stocks mentioned above? Do you think it makes sense for new investors to focus on the top 5? Share your thoughts in the comments below.
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