Robinhood traders have been stereotyped as speculative traders, prone to chasing the hottest stocks. However, the reality is more complicated, while some are looking to make a quick buck, others are more focused on building long-term wealth.
Even a superficial scan of the top Robinhood stocks reveals several blue-chip stocks. The Robinhood 100 can give insight into the companies and stocks that are popular among the younger generation.
Below, we provide a look at three of the most intriguing blue-chip Robinhood stocks investors should buy and hold for the next couple of decades or even longer: Apple (AAPL), Microsoft Corporation (MSFT),, and Amazon.com (AMZN).
It is hard to go wrong investing in AAPL. In fact, it can be argued only those who mistimed their entry into AAPL will have regrets. Fortunately for AAPL investors, such regrets tend to be short-lived as the stock is likely to continue its seemingly unstoppable ascension for decades to come. Everyone knows AAPL is a tech power player yet the company is expanding its horizons into new sectors and niches ranging from TV to personal health monitoring, digital payments, and even video games.
Check out the AAPL POWR Ratings and you will find the stock has an “A” grade in the Trade Grade component along with “B” grades in the Industry Rank and Buy & Hold grade components. AAPL is ranked in the top 10 of 30 Technology – Hardware companies. Though AAPL has enjoyed an epic bull run in recent financial quarters, the top analysts are still bullish on the stock, setting an average price target of $129.22, indicating there is nearly 5% upside left.
It is particularly interesting to note AAPL has a relatively low forward P/E ratio of 30.46, indicating the stock might be underpriced because many other tech stocks have forward P/E ratios approaching or over triple digits. Look for the success of the AAPL iPhone 12 series combined with holiday spending to propel AAPL even higher in the short-term. Furthermore, AAPL is likely to continue branching out, extending its dominance to additional economic sectors such as personal fitness and streaming video in the years and decades ahead.
Microsoft Corporation (MSFT)
From video games to computer operating systems, software used in offices across the globe, the cloud,, and beyond, MSFT is doing a little bit of everything tech-related. MSFT is one of two providers of a public cloud that permits the delivery of extensive PaaS and IaaS solutions, tailored in accordance with the scale of each client. Though MSFT might not ever emerge as the king of the video game sector, it is making progress, providing gamers with a widely lauded console and library of games every half-decade or so.
The POWR Ratings show MSFT has an “A” grade in the Trade Grade component along with “B” grades in the Peer Grade, Industry Rank,, and Buy & Hold grade components. MSFT is ranked in the top third of the 95+ Software – Application stocks. The leading analysts are bullish on MSFT, with 22 of 22 recommending the stock as a “Buy”. Furthermore, the analysts have established an average price target of $248.26 for the stock, indicating it is poised for new heights.
MSFT is all the more attractive now that it is attempting to capture market share from Zoom, offering no-cost, all-day video calls. Buy MSFT today, hold it for decades and your investment might increase tenfold or more.
Investors are hard-pressed to find a stock with a better long-term outlook than AMZN. It appears as though the only thing that will stop this behemoth is a government breakup. However, it might take years or decades for serious AMZN breakup discussions to take place.
AMZN offerings include:
- Its uber-popular shopping website
- Twitch gaming streams
- Exclusive sports broadcasts
- Online labor through AMZN’s Mechanical Turk
- Web hosting
- Whole Foods stores
The POWR Ratings show AMZN has an “A” Industry rank grade along with “B” grades in the Buy & Hold Grade and Trade Grade components. AMZN is ranked 15th of 59 stocks in the Internet space. The average price target for the stock is $3,819, indicating it still has a 20% upside. However, it should come as no surprise if this stock increases by a multiple of 20 or more across the next decade.
AAPL shares rose $0.69 (+0.56%) in premarket trading Tuesday. Year-to-date, AAPL has gained 71.02%, versus a 15.82% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More…
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