Key Points
Both COIN and HOOD are popular among institutional and retail investors, showing strong potential for further gains.
Coinbase Global is up 33% YTD, breaking out of a bullish wedge and testing its 50-day SMA.
Robinhood Markets is up 55% YTD, consolidating near its 52-week high and above key moving averages.
5 stocks we like better than Robinhood Markets
Shares of Coinbase Global NASDAQ: COIN and Robinhood Markets NASDAQ: HOOD are capturing significant attention. Both stocks display promising technical patterns indicative of potential breakouts.
Let’s delve into the current setup for these two retail favorites and explore why they might be poised for further upside, alongside a snapshot of key fundamentals.Get Robinhood Markets alerts:Sign Up
Coinbase Global: Breaking Out of the Downtrend
$237.65 +18.79 (+8.59%) (As of 05/24/2024 ET)52-Week Range$46.43▼$283.48P/E Ratio47.44Price Target$214.67Coinbase Global, a leading cryptocurrency exchange, has been on an impressive upward trajectory, with shares surging 33% year-to-date. The company reported stellar earnings on February 15, 2024, posting $1.04 earnings per share (EPS), significantly surpassing the consensus estimate of ($0.09). This impressive beat was supported by a 51.6% year-over-year increase in revenue, reaching $953.80 million, well above the forecasted $826.10 million.
Despite the positive earnings and recent bullish momentum in the stock, Coinbase currently holds a “hold” rating from analysts based on 20 ratings, with a consensus price target suggesting a slight downside. However, the technical analysis tells a different story. The stock recently broke out of a bullish wedge downtrend and is now testing its 50-day Simple Moving Average (SMA). Reclaiming and maintaining levels above this critical zone could signal a confirmed breakout, potentially leading to substantial gains.
The company’s strong financial performance and the technical breakout make Coinbase a compelling candidate for continued growth in the near term. The current market dynamics and the increasing institutional interest in cryptocurrencies further bolster its prospects.
Robinhood Markets: Hovering Near 52-Week Highs
HOODRobinhood Markets$20.51 +1.27 (+6.60%) (As of 05/24/2024 ET)52-Week Range$7.91▼$21.21P/E Ratio136.73Price Target$19.75Robinhood Markets has also been on a tear this year, with its stock up an impressive 55% year-to-date. On May 8, 2024, the company reported its earnings, revealing $0.18 EPS for the quarter, surpassing the consensus estimate of $0.05. Robinhood’s revenue soared to $618 million, a 40.1% increase compared to last year’s quarter, beating the anticipated $552.74 million.Analysts have a “hold” rating on Robinhood based on 15 ratings, with a consensus price target that aligns closely with its current trading level. However, the technical picture is notably bullish. The stock is trending above all major moving averages and is consolidating near its 52-week high, just 6% away. This consolidation above rising key moving averages suggests that Robinhood is building a solid base, positioning itself for a potential breakout to new highs.
Institutional and Retail Sentiment
Both Coinbase and Robinhood have substantial institutional backing and remain popular among retail investors. HOOD, a favorite platform for retail traders and a stock to own, has an impressive 93.27% institutional ownership. Similarly, COIN, a stock popular amongst the retail crowd, also has almost 70% institutional ownership. The strong year-to-date performance of both stocks indicates robust market confidence. Additionally, the technical patterns observed in both stocks are often precursors to significant upward movements.
Ready for the Next Leg Higher?
Investors will want to keep a close eye on these technical levels: For Coinbase, maintaining above the 50-day SMA will be crucial, while for Robinhood, breaking above the consolidation near its 52-week high could trigger the next leg higher. Given their fundamental strengths and technical setups, both stocks appear poised to deliver potential further gains.Before you consider Robinhood Markets, you’ll want to hear this.MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Robinhood Markets wasn’t on the list.While Robinhood Markets currently has a “Hold” rating among analysts, top-rated analysts believe these five stocks are better buys.View The Five Stocks Here Thinking about investing in Meta, Roblox, or Unity? Click the link to learn what streetwise investors need to know about the metaverse and public markets before making an investment.Get This Free Report
