What are the Best Robinhood Stocks to Buy Now?
Despite the ease of buying a stock, purchasing the right one at the right time without a proven strategy is extremely challenging. So, which Robinhood stocks should you consider adding to your portfolio or keeping on your watchlist? Nvidia (NVDA), Microsoft (MSFT), and Amazon (AMZN) stand out as top performers. Unlike meme stocks such as GameStop (GME) and AMC Entertainment (AMC), these stocks offer a combination of solid fundamental and technical performance. But what sets them apart from the thousands of stocks trading on the NYSE and Nasdaq? To generate significant gains, you need stocks that combine earnings and stock market performance. The CAN SLIM system provides clear guidelines for finding the best Robinhood stocks to invest in. For instance, look for companies with recent quarterly and annual earnings growth of at least 25%, new, game-changing products and services, and those generating tremendous revenue growth.
It’s essential to keep the market direction in mind when investing in Robinhood stocks. The M in the CAN SLIM formula stands for market, indicating that most stocks, even the best ones, follow the market direction. Make sure to invest when the stock market is in a confirmed uptrend and move to cash when it goes into a correction. The stock market rally in 2022 soon faltered but has since surged, with the Nasdaq and the S&P 500 reclaiming their 50-day moving averages after testing the 200-day line. The market is now in a confirmed uptrend, making it a good time for stock purchases. However, it’s crucial to invest in high-quality stocks and stay updated on market trends and potential sell signals.
Now, let’s delve deeper into three highly promising Robinhood stocks: Nvidia, Microsoft, and Amazon. These stocks are not only strong in terms of fundamentals but also boast solid institutional ownership and popularity among traders. If you’re looking for the next big stock market winners, start with these essential steps. For instance, Nvidia’s impressive strength and growth makes it a compelling investment choice. It boasts a near-perfect IBD Composite Rating of 98, is in the top 2% of stocks in terms of price performance over the past 12 months, and has seen earnings grow by an average of 334% over the past three quarters.
As for Microsoft, the company has seen its EPS grow by an average of 19% over the past three quarters and 16% over the past three years, reflecting impressive growth for such a large firm. With big money being a net buyer of MSFT stock of late and boasting an impressive Composite Rating of 99, Microsoft remains an attractive investment option. Both Nvidia and Microsoft have shown their commitment to developing AI solutions, making them noteworthy stocks to watch.
In conclusion, the stock market is a realm of uncertainty and change. Be sure to keep a close eye on market trends, follow the best practices in stock selection, and stay up-to-date with all the latest insights and analysis to make informed investment decisions.
