Also take into account that the company’s “metamorphosis,” could be the catalyst that helps it re-accelerate growth in the years ahead. This is a name deserving of a much higher multiple. Specifically, its high margins, strong balance sheet and economic moat. The FAANG component now trades for 17.2x earnings, taking into consideration its high-quality. With this big drop, Meta shares have fallen to a very low valuation. Yet a pullback of this degree? This is an overreaction. Yes, with its rate of growth slowing down, a pullback may have been justified. In total, FB stock has dropped more than 30%. Yet while BAC stock may be up more than 49% over the past year, and up around 11% year-to-date (while major indices are in the red so far this year), that doesn’t mean a big drop is in the cards.īarring the inflation/rate hike issue having a severe negative impact on the economy, the bank is projected to see a nice boost to earnings per share (EPS) between 20. First, due to the pandemic recovery, and now, due to rate hikes. Granted, the stock has been on a big run over the past year. The Federal Reserve’s rate hikes are set to bring about a “back to normal” for banking.Ī great way for newbie investors to play this trend is to buy shares in a large money center bank, like Bank of America. After years of a near-zero interest rate environment, bank profitability will improve. There are plenty of sectors that are seeing a negative impact from rising interest rates, but when it comes to bank stocks, it’s the opposite. So, if you’re new to investing, which Robinhood stocks should you add to your portfolio? Keep these seven, all meeting the low-risk, reasonably priced criteria, on your watchlist as potential buys: The recent tech sell-off has pushed some high-quality big tech leaders to more than reasonable valuations. Yet at the same time, tech isn’t excluded. Think automakers, banks, and pharmaceutical companies. Many of these names are “old economy” sorts of stocks. 7 Oil Stocks to Buy as Multiple Catalysts Converge.There are many widely held stocks that offer relatively lower levels of risk, trading at relatively low price-to-earnings (P/E) multiples, with the potential to produce solid returns. But while you may want to stay away from meme stocks, “story stocks” and other overvalued names, that doesn’t mean you should put your plans to start investing fully on hold. Vlad Tenev, Robinhood’s CEO, and Jason Warnick, the CFO, both highlighted this profitable turn as a significant achievement for the company.With this in mind, steering clear of the more high-flying names popular with retail investors who use brokerage apps like Robinhood may be a wise move. The company also reported a GAAP profitability milestone, with earnings per share of 3 cents, beating a Street estimate of a loss of 2 cents per share. This significant investment follows Robinhood’s announcement of Q2 revenue of $486 million, up 53% year-over-year and 10% quarter-over-quarter. $5.6 million, based on Robinhood shares’ Thursday closing price of $11.54. This move comes in the wake of Robinhood’s recent Q2 earnings report that beat Street estimates and marked the company’s first profitable quarter.Īrk Invest purchased 46422 shares of Robinhood for its Ark Fintech Innovation ETF (NYSE:ARKF), 365748 shares for its ARK Innovation ETF (NYSE:ARKK), and 70111 shares for its ARK Next Generation Internet ETF (NYSE:ARKW). On Thursday, Cathie Wood-led Ark Invest made several trades, the most prominent being a substantial purchase of Robinhood Markets Inc (NASDAQ:HOOD) shares.
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