These Are The Best Robinhood Stocks To Buy Or Watch Now

Buying a stock is deceptively easy, but purchasing the right stock at the right time without a proven strategy is incredibly hard. So, what are the best Robinhood stocks to buy now or put on a watchlist?

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At the moment, Apple (AAPL), Google parent Alphabet (GOOGL) and Bank of America (BAC) are standout performers. Unlike misfiring meme stocks such as GameStop (GME) and AMC Entertainment (AMC), these stocks offer a mix of solid fundamental and technical performance.

Best Robinhood Stocks To Buy: The Crucial Ingredients

There are thousands of stocks trading on the NYSE and Nasdaq. But to generate big gains you have to find the very best. The best Robinhood stocks for investors will be those that offer a mix of earnings and stock market performance.

The CAN SLIM system offers clear guidelines on what you should be looking for. Invest in stocks with recent quarterly and annual earnings growth of at least 25%. Look for companies that have new, game-changing products and services. Also consider not-yet-profitable companies, often recent IPOs, that are generating tremendous revenue growth.

The Market Is Key When Buying Robinhood Stocks

A key part of the CAN SLIM formula is the M, which stands for market. Most stocks, even the very best, follow the market direction. Invest when the stock market is in a confirmed uptrend and move to cash when the stock market goes into a correction.

A stock market rally that kicked off 2022 soon fell on its face. And while the market has attempted to rally, action remains uncertain. The Nasdaq, S&P 500 and the Dow Jones Industrial Average are currently trading beneath the key 200-day moving average.

With the current outlook uncertain investors should stop buying stocks, aside from exceptional breakouts in exceptional stocks. It is not the time to be adding shares to existing holdings. Getting off margin would be a solid move as well.

Investors should be taking some profits. Target stocks that recede after they’ve rallied 20% or more from buy points.

Sell signals must be followed strictly to avoid painful losses. Consider selling stocks that are less than 7% below the purchase price. With stocks that have been rising above their 50-day or 10-week moving averages, beware of sharp breaks below those lines.

Veteran growth stock investors have likely kept a lot of their powder dry. The market still has a scarcity of outstanding breakouts from stocks with true CAN SLIM fundamentals.

Remember, things can quickly change when it comes to the stock market. Make sure you keep a close eye on the market trend page here.

Best Robinhood Stocks To Buy Or Watch

Now let’s look at Apple stock, Microsoft stock and Pfizer stock in more detail. An important consideration is that these stocks are solid from a fundamental perspective, while institutional ownership is also strong. They are also part of the Robinhood Top 100 Stocks, the platform’s most popular stocks among traders.

Apple Stock

AAPL stock is trading just below a new cup-with-handle base entry. The ideal buy point here is 176.75 , according to MarketSmith analysis.

An important short-term goal for AAPL stock will be retaking its 50-day line. It fell below the key benchmark just over a week ago.

Nevertheless, Apple stock has just seen its relative strength line hit new highs. This is a positive, but also a sign of how bad the broader market sell-off has been. Stocks with strong RS lines during choppy markets can be among the first to break out during an uptrend.

Apple stock has seen its Composite Rating shoot up to a very strong 93 out of 99. Apple became the first company to reach a market capitalization of $3 trillion last month, though it has now backed off this level.

The IBD Stock Checkup tool shows earnings growth is bouncing back in recent quarters following the Covid-19 pandemic. Apple stock got a boost after reporting earnings for Q1 of fiscal 2022.

It was the firm’s best ever quarter for revenue, with all categories excluding iPads coming in above views. Apple did not give guidance for the current quarter, though executives were relatively upbeat. The firm has not given specific quarterly guidance since the Covid-19 pandemic began.

Apple‘s EPS growth has averaged 65% over the past three quarters. This is comfortably clear of the 25% earnings growth sought by the CAN SLIM cognoscenti.

Analysts see earnings growth of 8% growth in fiscal 2023. Investors will want to see CEO Tim Cook squeeze out more impressive gains.

With its iPhone business maturing, investors are looking for a new big growth driver for Apple stock. Services and wearables are seen as two key drivers.

In the September quarter, Apple’s services revenue rose 26% year over year to $18.3 billion. Services include the App Store, AppleCare, iCloud, Apple Pay, Apple Music, Apple TV+, Apple Arcade and other offerings.

One reason to be bullish on Apple is it continues to produce new products, which is a major success factor in the CAN SLIM system.

Speculation is reaching fever pitch that Apple is looking to make a self-driving electric car.  In November Bloomberg reported Apple is aiming to launch self-driving EVs in 2025.

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Google Stock

Google parent Alphabet has given up its post-earnings gains and more, according to MarketSmith analysis.

It has fallen back beneath its 200-day line, a bearish sign. But if it can rebound from here and retake the 50-day moving average it could serve as a buying opportunity for aggressive investors.

The relative strength line is slipping following its earnings spike. The RS line gauges a stock’s performance compared to the S&P 500.

GOOGL stock has a strong IBD Composite Rating of 86. That puts it in the top 14% of stocks tracked overall. Earnings outshine stock market performance, with its EPS Rating a very strong 96 out of 99.

Earnings have grown by an average of 105% over the past three quarters. This is just over four times the 25% growth sought by CAN SLIM investors.

Google earnings per share for full-year 2022 are seen rising 17%, then rising a further 17% in 2023.

The tech giant has a Relative Strength Rating of 91. That means it has outperformed 91% of stocks tracked over the past 12 months in terms of price performance. It has gained more than 27% during that period.

Big money has been dipping back into Alphabet stock following a broad sell-off. This is reflected in its Accumulation/Distribution Rating of C+ which reflects slightly more buying than selling over the past 13 weeks.

Google stock vaulted higher after the firm announced a 20-for-1 stock split as well as spanking analyst earnings estimates. EPS jumped 38% to $30.69 per share.

The company repurchased $13.5 billion of Google stock in the fourth quarter, up from $12.6 billion in the September quarter.

Alphabet is projecting a “meaningful increase” in 2022 capital spending, reflecting investments in computer servers in internet data centers and construction of office space.

But GOOGL stock faces more difficult growth comparisons in 2022 as the coronavirus pandemic fades.

“We expect smaller beats in 2022 as search growth slows and operating expenses increase,” Bank of America analyst Justin Post said in a research note.

“However, versus peers, Alphabet has more earnings stability, more potential exposure to an ongoing rebound in local and travel verticals, evidence of artificial intelligence advantages across the product stack and a management team doing more for shareholders (buybacks and now stock splits),” he added.

Google plans to utilize “contextual” technology that enables advertisers to target aggregated groups of consumers with similar interests, such as travel, sports or fashion.

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Bank Of America Stock

Bank of America stock is testing support at its 50-moving average. If it can rebound from it could serve as a buying opportunity, though investors also could wait for a new consolidation to form.

It previously flashed a sell signal after falling more than 8% below a cup base buy point of 48.79.

Investors will want to see its RS line continue to pick up steam going forward.

In the most recent quarter Bank of America posted EPS of 82 cents, beating analyst views for 76 cents.

Revenue came in virtually on par with Wall Street expectation.

The firm was also release $851 million in reserves and book a nearly half-billion-dollar benefit after $362 million in charge-offs.

It made the move due to improving credit quality during the quarter. The company said had seen the lowest loan loss rate in more than five decades.

Rising interest rates and a improving loan growth is seen boosting bank profitability.

Overall earnings performance is strong, with the stock holding an EPS Rating of 88 out of 99.

Over the past three quarters EPS has grown by an average of 95%. This is well in excess of the 25% growth rate sought by CAN SLIM investors.

Banking is an area that should see improved profitability as interest rates rise. As a major player in the space BAC stock could be a big winner.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.

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