by The leading brokerage platform, Robinhood offers a commission-free, streamlined and easy-to-navigate trading experience and is very famous among experienced traders and novice traders alike. While not all stocks traded on this platform have a solid foundation, the popular stocks of Robinhood Alphabet (GOOGL), Visa (V) and Walmart (WMT) can yield solid returns in the long run. Read on….
Robinhood has gained immense popularity among tech-savvy and new retail investors thanks to its no-fee model and sleek, easy-to-use trading experience. While it’s been a tough year for speculative assets, including meme stocks, investors may want to consider buying Alphabet Inc blue chip stocks. (GOOGLE), Visa Inc. (V) and Walmart Inc. (WMT), which are among the most traded stocks on Robinhood.
Founded in April 2013, Robinhood Markets, Inc. (HOOD) is a financial services company that facilitates commission-free transactions in stocks, ETFs, options and cryptocurrencies via mobile apps and website. robinhood maintains membership with the Financial Industry Regulatory Authority (FINRA) and is registered with the US Securities and Exchange Commission (SEC).
Robinhood is extremely popular with aggressive and millennial retail investors. As at December 31, 2022, the company had approx 11.4 million monthly active users and $62 billion in assets in custody. The company’s cumulative net accounts totaled $23 million.
Retail investor activity, which gained momentum during the pandemic, continues to lose momentum in the face of macroeconomic uncertainty. Retail investors suffered huge losses after highly speculative assets such as meme stocks encountered rough seas this year, causing investors to pull out massively from retail investment platforms.
While mobile brokerage Robinhood is often associated with meme stocks, speculative options trading and cryptocurrencies, Robinhood investors also hold a variety of promising blue chip and bullish stocks in their portfolios.
Given the current uncertain market conditions, investing in the fundamentally sound stocks of Robinhood, GOOGL, V and WMT could be wise for substantial gains in the long term.
Let’s take a closer look at the basics of these actions:
Alphabet Inc. (GOOGLE)
The technology conglomerate GOOGL provides Internet-related products and services in the United States, Europe, Canada, Latin America, the Middle East and the Asia-Pacific region. The company operates in three segments: Google services; Google Cloud; and other establishments.
On March 15, 2023, GOOGL selected Fastly, Inc. (FLY), the world’s fastest cloud platform, to run Oblivious HTTP Relay (OHTTP Relay) as part of FLEDGE, a Privacy Sandbox initiative to improve online privacy for Chrome users.
Victor Wong, senior director of product management at GOOGL, said: “The privacy and security of user data is critical to the future of online business. With Fastly, we’ve achieved the best of both worlds by providing users with robust privacy protections while delivering a high-quality and personalized experience.”
On January 31, GOOGL’s Google Cloud announced four new and updated AI technologies that will help retailers transform their shelf-checking processes and improve their e-commerce sites, giving customers a more seamless and natural online shopping experience.
The new self-monitoring AI solution, built on the Google Cloud Vertex AI Vision platform, leverages Google’s recognition of billions of products. Moreover, Google Cloud Discovery AI solutions introduced new AI features to give e-commerce sites a more dynamic and intuitive shopping experience. These new launches should bode well for the company’s growth.
GOOGL revenue increased 2.6% year-on-year to $69.79 billion in the first quarter ended March 31, 2023. GOOGL’s total revenue increased 18.9% year-on-year to $16.65 billion. As of March 31, 2023, the company’s cash and cash equivalents totaled $25.92 billion, compared to $21.88 billion as of December 31, 2022.
Analysts expect GOOGL revenue to grow 5.8% year-on-year to $299.20 billion in the fiscal year ending December 2023. The company’s EPS this year is expected to increase 16.2% compared to the previous year to USD 5.30. In addition, GOOGL revenue and EPS in fiscal year 2024 are expected to increase by 11.6% and 17.4% year-on-year to $333.90 billion and $6.22, respectively.
The stock has gained 19.3% in the last six months and 18.5% year-to-date to close the last trading session at $105.57.
The promising foundations of GOOGL are evident in its POWR ratings. Stocks have an overall B rating, equivalent to Buy on our proprietary rating system. POWR ratings are calculated based on 118 different factors, each with an optimal weighting.
GOOGL is rated A for moods and B for quality. In stock 57 Internet ranks 12th in the industry. To access GOOGL ratings for Value, Growth, Momentum, and Sustainability, click here.
Visa Inc. (V)
V is a leading payment technology company that facilitates digital payments to consumers, merchants, financial institutions, businesses and governments. Supports VisaNet, a transaction processing network; Visa Direct, a real-time payment network; and Visa DPS. The company offers its products and services under the brands Visa, Visa Electron, Interlink, VPAY, PLUS.
On April 11, V announced a partnership with PayPal and Venmo to launch Visa+. This innovative solution allows you to transfer money quickly and securely between different digital person-to-person (P2P) payment platforms. Later this year, Venmo and PayPal customers in the United States were able to seamlessly transfer money between the two platforms.
V pays a dividend of $1.80 per share per year, which translates to a gain of 0.78% relative to the current price. Its four-year average dividend yield is 0.63%. The company’s dividend payouts have grown 17.6% CAGR over the past five years.
In the second quarter ended March 31, 2023, V net revenue increased 11.1% year-on-year to $7.99 billion. corporate operating income increased by 11.1% year-on-year to USD 5.34 billion. Non-GAAP net income was up 14% year-on-year to $4.40 billion, and non-GAAP earnings per share was $2.09, up 17% year-over-year.
Analysts expect V’s revenue to grow 11.1% year-on-year to $32.57 billion in the fiscal year ending September 2023. The company’s EPS this year is expected to increase 14.4% year-on-year up to $8.58. Moreover, the company exceeded the revenue and EPS consensus in all four consecutive quarters, which is impressive.
In addition, the consensus revenue and EPS estimates of $36.12 billion and $9.77 for the next fiscal year (ending September 2024) indicate an improvement of 10.9% and 13.9% year-over-year, respectively.
V shares have gained 15.8% over the past six months and 12.9% over the past year, closing the last trading session at $231.78.
V’s POWR ratings reflect this promising prospect. Stocks have an overall B rating, equivalent to Buy on our proprietary rating system.
V is rated A for Quality and B for Sentiment and Stability. within Consumer Financial Services industry, stocks rank second out of 49 companies.
click here to access additional POWR ratings for V (value, momentum, and height).
Walmart Inc (WMT)
Retail giant WMT operates supercenters, supermarkets, wholesalers, cash and carry stores and discount stores under the Walmart and Walmart Neighborhood Market brands; membership-only storage clubs; e-commerce sites; and mobile shopping apps. The company’s business segments include Walmart US; International Walmart; and Sam’s Club.
On April 26, Walmart Health announced an expansion to Oklahoma, opening four new health centers in 2024, in addition to Missouri and Arizona, and expanding its presence in Texas. Walmart Health aims to help Walmart customers live better by offering convenient access to affordable, high-quality healthcare services. This expansion could boost WMT’s profitability and growth.
On February 21, WMT raised its annual dividend for fiscal year 2024 to $2.28 per share, up 2% from the prior fiscal year. “Dividends continue to be part of our approach to differentiated returns on equity. We are proud to increase our annual dividend for the 50th consecutive year, which is a milestone for our company,” said John David Rainey, executive vice president and chief financial officer of WMT.
WMT’s four-year average dividend yield is 1.65%, with an annual dividend of $2.28 yielding 1.50% at current prices. The company’s dividend payouts have grown by a CAGR of 1.8% over the past three years and 1.9% over the past five years.
WMT’s total revenue increased 7.3% year-over-year to $164.05 billion in the fourth quarter ended January 31, 2023. Adjusted operating income increased 6.3% year-over-year to $6.37 billion. In addition, consolidated net income attributable to Walmart increased 76.2% year-on-year to $6.28 billion, and adjusted EPS was $1.71, up 11.8% year-on-year.
Analysts expect WMT’s revenue for the fiscal year ending January 2025 to be $650.71 billion, up 3.6% year-over-year. The company’s EPS over the same period is expected to increase by 11.2% year-on-year to $6.80. In addition, the company exceeded consensus estimates of revenue in each of the last four quarters.
The stock has gained 6.5% over the past six months, closing the last trading session at $151.77.
WMT’s solid outlook is reflected in POWR’s ratings. Stocks have an overall A rating, which is a strong buy in our proprietary rating system.
WMT is rated A for stability and sentiment. Has a B for height and quality. Among 37 A-rated stocks Grocery Retailers/Big Box industry ranks 2nd.
In addition to the POWR ratings listed above, we also gave WMT ratings for value and momentum. Get all WMT ratings Here.
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GOOGL shares fell $0.45 (-0.43%) in pre-market trading on Monday. Year-to-date, GOOGL has gained 19.65% compared to the S&P 500 Index’s gain of 8.31% over the same period.
About the Author: Mangeet Kaur Bouns
Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using its fundamental approach to stock analysis, Mangeet seeks to help retail investors understand the fundamental factors before making investment decisions.
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