Buy HOOD as It Breaks Out to 52-Week Highs on Strong Volume

Key Points:

 

  • Buy Robinhood stock as it breaks out to its 52-week high from an early-stage base on strong volume. It is actionable in the range of $20.6–21.6.
  • Improving fundamental profile: EPS Rank has improved to 80 from 68 since its addition to the Focus List. Robinhood is expected to turn profitable in FY24. EPS estimates for FY24 and FY25 have been revised upward by 48% and 11%, respectively, in the last month.
  • Strong technical profile: RS line is at its multi-year highs. RS Rating above 95 for the past nine weeks indicates outperformance. Acc/Dist Rating has been highly positive and stands at A-, indicating strong money inflows. Institutional sponsorship more than doubled y/y to 661 funds as of March. Group Rank improved to 19 from 63 in the past six weeks.