Why Robinhood Markets, Inc. (HOOD) is a Top Momentum Stock for the Long-Term
RobinhoodRobinhood(US:HOOD) ZACKS·2025-10-20 14:50

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Analyzes projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - Evaluates price trends and earnings outlook changes to identify favorable buying opportunities for high-momentum stocks [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating based on value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988 [7] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock Highlight: Robinhood Markets, Inc. - Robinhood Markets, Inc. is a financial services company offering commission-free trading in various assets, aiming to democratize finance [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Momentum Style Score of A, indicating strong performance potential [12] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.21 to $1.76 per share, with an average earnings surprise of +19.5% [12][13]