Bull of the Day: Robinhood Markets (HOOD)

Robinhood Markets HOOD, through its subsidiaries, provides a platform to trade stocks, options, crypto, futures (including event contracts), invest for retirement, and earn with Robinhood Gold. The stock currently sports the highly-coveted Zacks Rank #1 (Strong Buy), with its EPS outlook remaining rosy.

The stock also resides in the Zacks Financial – Investment Bank industry, which is currently ranked in the top 20% of all Zacks Industries.

HOOD Posts Record-Breaking Results

Robinhood’s latest quarterly results broke records across several key metrics, also crushing our consensus EPS and sales estimates by 19% and 5%, respectively. Sales grew an impressive 100% year-over-year to a record $1.3 billion, whereas adjusted EPS soared 260%.

Notably, net deposits of $20 billion reflected a quarterly record, with 3.9 million Gold subscribers also reflecting an all-time company high. The company now has up to eleven business lines that are each generating $100 million or more in annualized revenues, with average revenue per user (ARPU) also climbing 82% year-over-year throughout the period.

Customers remained highly-active on the platform, with transaction-based revenues up 129% from the year-ago period. Activity was broadly strong, with crypto, options, and equities revenues climbing 300%, 50%, and 86%, respectively.

Below is a chart illustrating the company’s revenue on a quarterly basis.

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Robinhood Markets HOOD would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy). 

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research