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Bull of the Day: Robinhood Markets (HOOD)

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Key Takeaways

  • Robinhood continues to show notable platform momentum through its quarterly results.
  • HOOD posted records for sales, net deposits, and Gold subscribers in its latest release.
  • Platform activity remains strong, with ARPU soaring 82% YoY throughout its latest period.

Robinhood Markets (HOOD - Free Report) , 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.

Zacks Investment Research
Image Source: Zacks Investment Research

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.

Zacks Investment Research
Image Source: Zacks Investment Research

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 - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy). 


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