What Are The Top 10 Penny Stocks On Robinhood For February?
Once again we’ve got a new (but short) month to find some of the best penny stocks on Robinhood to watch this month. This feature has grown in popularity each month and now that February is here, it’s time to take a look at some Robinhood penny stocks. Before I get into it, I want to confirm that this is a list of the most popular penny stocks on Robinhood. The list is derived from the number of accounts on the application that hold shares of each of these companies.
Some months we’ve seen huge momentum build with our list. Other months are a bit different. In any event, the Robinhood app is used by thousands of investors each day. It has actually changed the face of penny stock brokers as we know it today.
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It wasn’t all that long ago where you would see these outlets charge fees to make trades. Keep in mind that this is for both buying and selling shares. If you’ve got a small account, it makes it hard to profit from trading penny stocks since you’ve got to account for such fees. But in came Robinhood and changed it all. Now we’ve seen some of the biggest online brokers change their fee structure to reflect a low or even no-fee model.
Top 10 Penny Stocks On Robinhood For February
This month is a short month. Though, for February, it’s longer with the leap year. However, a lot has already happened that could impact certain penny stocks this month. Now, if you’ve followed this feature for a while, you know that some months we see the same names in certain spots on this list of penny stocks. The growing popularity of certain industries like cannabis or tech push traders to buy penny stocks that are related.
Click For January’s List: Top 10 Penny Stocks On Robinhood To Watch For January 2020
But when looking for penny stocks to buy, don’t just base it on popularity alone. As we’ve seen with one of the stocks mentioned on this list, just because it was popular didn’t mean it was good to invest in. Also, when you put together a list for an entire month, it’s also key to pay close attention to corporate developments as well as filings and industry catalysts.
But I don’t want to get too long-winded explaining penny stock basics. You can check out information like that on PennyStocks.com. However, on that note, let’s take a look at the top penny stocks on Robinhood this month.
Robinhood Penny Stocks #10: Nokia
First, on this list of Robinhood penny stocks, Nokia (NOK – Free Report) has done incredibly well over the last few months. I remember writing about this company over the last few months. Last year was a rough one for the company but in spite of this, it was one of the better Robinhood penny stocks to watch last month.
Shares started off around $3.80 and managed to run to highs of $4.24. The biggest target for Nokia has been on 5G platform expansion, streamlined operations, and more of a long-term approach to this next big wave in tech. Needless to say, the race has been on and Nokia got a nice bump from earnings and corporate guidance. In addition to that, we saw comments made by U.S. Attorney General William Barr that also helped bring the spotlight on the communications company.
“We have to make a decision on the ‘horse’ we are going to ride in this race [for 5G]. Some propose that these concerns could be met by the United States aligning itself with Nokia and/or Ericsson through American ownership of a controlling stake, either directly or through a consortium of private American and allied companies.”U.S. Attorney General William Barr
Will this be enough to help drive NOK stock further this month? The company confirmed that it converted all 4G clients to 5G while also gaining new clients as well. Fourth-quarter revenues were also above expectations so all-in-all the company finished the year strong. Now we look to see what comes next for a stock that has just under 59,000 users on Robinhood holding shares.
Robinhood Penny Stocks #9: Sprint
Next, a penny stock that needs no introduction is Sprint (S – Free Report). It has been a focus on this site since it first approached the penny stock price range. Shares of this company have gotten absolutely demolished over recent months as concern grows about its pending T-Mobile merger (TMUS – Free Report).
While a similar scenario as Nokia could be in the works for Sprint, it’s important to understand the potential risks involved. The main factor is if the merger gets denied. Sprint stock kicked off the month strong in February. After dropping to new 52-week lows, shares began trading in a more bullish trend.
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The company and T-Mobile along with Comcast teamed up to fight against robocalls. While this is good news, the progress for the TMUS/S deal will be vitally important in my opinion. So, heading into February, keep all of this in mind as Sprint tries to make its way out of penny stock territory.
Robinhood Penny Stocks #8: Groupon
Moving back a spot this month is Groupon (GRPN – Free Report). Last month it was #7 on the list of penny stocks on Robinhood. This was another penny stock that suffered some big. blows last year. But as we noted last month, Groupon could be in a position to benefit from a few things. Mainly, the stake taken by MIG Capital has become a boon to the company’s share price. The activist investor has aimed at taking an active role in the company to some extent.
Richard Merage runs MIG and formerly took Hot Pockets to its high level of success. He’s expressed that Groupon is “undervalued and represented an attractive investment opportunity”. Since the start of the year, GRPN stock has made somewhere of a turnaround. The daily deal stock has jumped by more than 30% since January 2 making new highs already this month.
The further appointment of Merage to its Board of Directors could also be a hot button right now. Ted Leonsis, chairman of Groupon’s nominating committee said, “We look forward to tapping Richard’s important shareholder perspective and insight as we continue to drive Groupon’s strategic direction and the large opportunity to unlock the financial potential of our marketplace.” With earnings coming this month it will be important for those interested in this stock to look at the fine details and observe corporate guidance for the year as well.
Robinhood Penny Stocks #7: Aphria
While most sectors outperformed in 2019, one of the laggards was the cannabis industry. In light of that, many of the top marijuana stocks are now finding themselves trading at penny stock prices. Aphria Inc. (APHA – Free Report) is one of these.
After showing some signs of life at the start of the year, APHA stock has slid once again. At the start of February, shares traded below $4.80 a share. Though this is the higher end of the penny stock range, the current trend appears very bearish. Amid a flurry of industry reports citing employments cuts, Aphria has found itself in a precarious position. It just raised $100 million CAD at a price of $7.12 CAD per share. Meanwhile, the market in Canada is still trying to figure itself out.
Oppenheimer analyst Rupesh Parikh wrote in a note that recent developments point to “continuing challenges in the Canadian cannabis market”. A potent black market and continuous challenges to expand retail are of major concern right now. With the U.S. elections right around the corner, however, there could be a sign of hope should new states enact cannabis laws.
But that’s still far out on the horizon. Right now, just under 98,000 accounts on Robinhood hold shares of Aphria and that’s up by more than 10,000 from last month. Does this indicate a growing demand for shares or are people still trying to “find a bottom” and taking a risk on pot penny stocks?
Robinhood Penny Stocks #6: Nio
Another mainstay on this site, Nio Inc. (NIO – Free Report) had more than 127,000 accounts holding shares of this penny stock on Robinhood. This was almost 20,000 more than in January. Over the last few months, Nio has worked to turn its business around and it started with delivering on…deliveries. One of the things that sent shares tumbling in 2019 was slower growth, need for more capital, and all-around poor management.
In late 2019, NIO stock started to rebound after the company began actually executing on real milestones and setting goals to deliver on; literally. This year has been mixed for the stock. Shares of the “Chinese Tesla” have traded erratically between $3.13 and $5.65. Concerns from the coronavirus shut down in China along with general conditions associated with the U.S./China trade war persisted. But this month may find the company finding some resolve.
Nio managed to raise short-term financing for $100 million in the form of convertible notes. The conversion price is $3.07, which isn’t as terrible as other financing deals. But it’s still much lower than the current retail price of NIO stock. This year the company is focusing on expanding its brand footprint.
In January Nio announced that it plans to build brick and mortar stores this year. The plan is for there to be 200 Nio House and Nio Space outlets by year-end. While this may be an interesting short-term topic, the market direction seems to come down to one thing: deliveries. So if NIO is on your penny stocks watch list this month, make sure to keep a close eye on that figure. Since the Robinhood penny stock is so volatile with news, things can change quickly depending on that delivery number.
Robinhood Penny Stocks #5: Chesapeake Energy
There wouldn’t be a complete list of penny stocks on Robinhood without at least one energy penny stock. Chesapeake Energy (CHK – Free Report) slid one spot this month to #5 from #4 in January. Besides the position on the list, CHK share price has also slid in the wake of the trend in oil and gas recently. However, it’s interesting to note that the number of portfolios holding shares of Chesapeake increased to over 130,000 from about 119,000 last month.
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The energy penny stock actually hit 26-year lows this year. It has been plagued by overloaded financing, bad economics, and a tough energy market so far. But there may be some high points to keep in mind when it comes to Chesapeake Energy.
The company said that it expects fourth-quarter production of 476,000 barrels of oil equivalent per day (boe/d) to 478,000 boe/d. The company also reported production of 464,000 boe/d in the year-earlier quart. If this is one of the penny stocks on your list this month, I would pay close attention to the oil sector as a whole. The shares of the company have been tightly in line with sector performance lately. Also, due to the recent accident at one of the company’s sites, there is regulatory attention on Chesapeake as well.
Robinhood Penny Stocks #4: Hexo Corp
Similar to Aphria, Hexo (HEXO – Free Report) finds itself on this list of penny stocks on Robinhood after a tough 2019. Shares continued to fall this year as well. Despite a brief sign of life in mid-January, the overall trend has been very bearish. The company has seen analysts cut price targets and slash ratings. Hexo has also found itself in a lawsuit with Medipharm for $7.5 million in a non-payment dispute.
Hexo wasn’t on the list of popular penny stocks on Robinhood last month. But this month shows that over 165,000 portfolios hold shares of HEXO stock. Just like with Aphria, Hexo may need more than just corporate news or filings to see a noticeable reversal in trend.
The sector itself may need to see some kind of win before most of these pot penny stocks shift course. Needless to say, HEXO has grown in popularity so at least more people are paying attention to the stock. Whether that’s a good or bad thing is up for debate.
Robinhood Penny Stocks #3: Plug Power
Plug Power has been one of the most consistent, top-performing penny stocks we’ve followed since last year. When we first caught up with this company, it traded around $2.15/$2.20. This year, Plug Power (PLUG – Free Report) stock has managed to reach highs of over $4.50 a share. Along the way we’ve seen the company close deals, increase order flow, and even report billion dollar projections for the next few years.
One of the bigger wins for this year came in January. It closed a contract with a “Fortune 100 logistics company”. The value of that deal was more than $172 million. Though the logistics company wasn’t named, it’s still significant for the company. Plug has a long list of big-name clients on its roster. These include the likes of Coca-Cola, Bridgestone, Wal-Mart, AT&T, WholeFoods and many more. Furthermore, Plug Power expects to ship 2,500 of its GenDrive fuel cells this year, bringing in more than $60 million in revenue.
This month plug remains the #3 most popular penny stock on Robinhood with over 180,500 portfolios holding stock. This is up considerably from last month. Starting of January, Robinhood showed just over 150,000 for this figure. The biggest driver right now is its growth so that will be something to take note of moving forward. Can the company continue on this course through 2020?
Robinhood Penny Stocks #2: GoPro
Coming in at #2 again this month is GoPro (GPRO – Free Report). Unlike Plug Power, this penny stock continues to suffer losses. After rallying at the end of 2019, this year has been tough for GoPro shareholders who are long the stock. Most recently, another curveball was thrown in the form of earnings results.
The company missed on its 4th quarter results and also gave a bleak forecast for the first quarter. GoPro reported that it expects lower-than-expected revenue in Q1 of 2020. Nicholas Woodman, chief executive of GoPro, said on a conference call, “Some key highlights for the year that contributed to our profitably were our proactive move of US-bound camera production to Guadalajara, Mexico, material growth of consumer direct sales at gopro.com and the growth of our high margin plus subscription service which as of the end of January totaled more than 334,000 paid subscribers.”
I would say that based on the revenue miss and the poor guidance that GPRO stock could be a stock to watch with caution. The company obviously needs to work on profitability in the near-term. But if it can’t pivot or at least expand on its current strategy, 2020 could be a bit stale. Needless to say, even after dropping after earnings, shares recovered from lows on February 6. Can that trend continue throughout the rest of the month?
Robinhood Penny Stocks #1: Aurora Cannabis
Finally, the #1 most popular penny stock on Robinhood for February 2020 is Aurora Cannabis (ACB – Free Report). This was the case last month with more than 596,000 portfolios holding shares. February has seen nearly 650,000 accounts holding shares of the pot penny stock at the start of the month.
For Aurora, the trouble hasn’t been only based on industry underperformance. This month the company also reported less than favorable news. Not only will it cut its workforce but its CEO, Terry Booth will step down without an immediate successor. Whether you liked Booth or not, the obvious issues have to do with a lack of leadership.
Needless to say, ACB stock remains below $2.20 a share. Recent lows show the pot stock reaching $1.50 at times. Regardless of these facts, Aurora is not just the most popular penny stock on Robinhood. It has beaten out all other stocks to be the most popular stock on Robinhood, in general.