Being dynamic in stock market investing is crucial, especially given the recent vibrancy of online platforms. Platforms such as Robinhood Markets (NASDAQ: HOOD), among others, wield significant influence over stock market trends. With more than 11.9 million on its platform, it has the power to create unique opportunities and risks for its growing user base. Hence, investors must keep tabs on the most undervalued Robinhood stocks, potentially offering robust long-term gains.
The Powerhouse: Amazon (AMZN)
Online retail giant Amazon (NASDAQ: AMZN) is arguably one of the more low-key members of the “Magnificent Seven” stocks. Though it doesn’t attract the same media buzz as other “Mag 7” stocks, it packs the biggest punch. Its recent quarterlies have been stunning, outpacing top-and-bottom-line results in the past five consecutive quarters.
Amazon released another smashing earnings report late last month, crushing top-and-bottom-line estimates across both lines with considerable aplomb. Revenues were up 13% year-over-year (YOY) to $143.3 billion, while its EPS of 98 cents beat estimates by a comfortable 15 cents.
The integration of generative AI with AWS has been a boon for Amazon, and with a ramp-up in capital expenditures, cloud-based AI demand will continue soaring for the foreseeable future. Despite its stellar run-up last year, AMZN stock still offers an 18% upside from current price levels based on consensus analyst estimates.
The Revival: Ford Motor (F)
Ford Motor (NYSE: F) is one of the oldest in the automotive sector, poised for a roaring comeback later this year. Like its peers, it operates in a highly unconducive business environment.
Consequently, it lagged major indices last year, but we’ve seen an excellent turnaround in the past six months. F stock is up 21.4% in the past six months, compared to the S&P 500’s 17% gain.
However, despite those encouraging gains, F stock still trades under 0.30 times, 68% lower than the sector median. On a forward cash flow basis, the stock trades 60% behind the sector median. Additionally, Wall Street analysts assign a ‘moderate buy’ rating to the stock, offering at least a 22% upside from current prices.
The Reinvention: Walt Disney Co. (DIS)
Fresh off a proxy battle win against billionaire investor Nelson Peltz, Walt Disney Co. (NYSE: DIS) CEO Bob Iger has much to prove to its investors. Peltz criticized Iger’s lackluster financial management, unreasonably high executive compensation, and Disney’s stock market slump.
Following the win, though, we’re seeing Iger adopt a more aggressive stance in turning things around for Disney. Particularly in its efforts to revitalize its entertainment division, Iger announced the firm will limit its output to no more than three Marvel films and up to two Disney+ shows per year.
Moreover, Iger will emphasize profitability for Disney’s streaming division. The segment turned a profit in the first-quarter (Q1), and the company expects full-streaming profitability by the end of the year.
Disney attracts a commanding ‘strong buy’ rating from Wall-Street, a 27% upside from current prices.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
