Robinhood Stock Keeps Surging to New Highs

• Robinhood (HOOD) shows strong technical momentum, hitting a new 52-week high on Wednesday, June 25.
• HOOD has a 100% technical “Buy” signal via Barchart.
• Shares are up more than 270% over the past 52 weeks and have more than doubled in the year to date.
• Fundamentals reveal robust revenue growth projections, though earnings are expected to dip this year before they rebound next year.

Today’s Featured Stock:

Valued at $73.3 billion, Robinhood Markets (HOOD) is a registered broker dealer that provides brokerage clearing services and cryptocurrency trading, among other things. 

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. HOOD checks those boxes. Since the Trend Seeker signaled a buy on April 25, the stock has gained 67.34%.

More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.

 

HOOD Price vs. Daily Moving Averages:

www.barchart.com

Barchart Technical Indicators for Robinhood:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Robinhood shares hit a new 52-week high on June 25, touching $85.55 in intraday trading.

• Robinhood has a 100% technical “Buy” signal.
• The stock recently traded at $82.75, above its 50-day moving average of $61.89.
• HOOD has a Weighted Alpha of +263.97.
• The stock has gained 271.33% over the past year.
• HOOD has its Trend Seeker “Buy” signal intact.
• Robinhood is trading above its 20, 50 and 100-day moving averages.
• The stock has made 10 new highs and gained 31.1% in the last month.
• Relative Strength Index is at 74.03%.
• The technical support level is $81.25.

Follow the Fundamentals:

• $73.3 billion market cap.
• Trailing price-earnings ratio of 63.3.
• Revenue is projected to grow 23.93% this year and another 16.17% next year.
• Earnings are estimated to decrease 19.62% this year but increase by 17.56% next year.

Analyst and Investor Sentiment on Robinhood:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts have very mixed feelings, but many are bullish on this stock.

• The Wall Street analysts tracked by Barchart issued 12 “Strong Buy,” two “Moderate Buy,” six “Hold,” and one “Strong Sell” opinion on the stock.
• Value Line rates the stock “Average.”
• CFRA’s MarketScope rates the stock a “Hold.”
• MorningStar thinks the stock is 26% overvalued.
• 48,680 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Robinhood Markets currently has momentum and support from both the market and individual investors.

I caution that HOOD is volatile and speculative — use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.