Zacks Investment Ideas feature highlights: Robinhood Markets and Nvidia

For Immediate ReleaseChicago, IL – February 6, 2026 – Today, Zacks Investment Ideas feature highlights Robinhood Markets, Inc. HOOD and Nvidia NVDA.Best Stock to Buy for the Selloff: HOOD Down -50% Ahead of Earnings?Robinhood Markets, Inc. stock skyrocketed to all-time highs in October as it flexed its growing credentials as a diversified digital brokerage powerhouse.HOOD transformed from an upstart stock-trading app that became famous in the early months of Covid into an S&P 500 giant and a direct competitor to Fidelity and other online brokerages.Check out the Zacks Earnings Calendar to stay ahead of market-moving news.Despite its roughly 50% drop from its highs, the boundary-pushing financial services firm has soared 650% in the past two years to more than triple Nvidia and blow away many other artificial intelligence stocks.Robinhood grew overheated and was due for a healthy recalibration. Its earnings and revenue growth outlook remain strong even as it gets caught in fears surrounding bitcoin, AI disruption, and beyond.It is far more than an app for meme-stock traders. Today, HOOD boasts that its 11 separate business lines each generate ~$100 million or more in annualized revenues.HOOD is approaching some very attractive technical levels for traders and long-term investors to start buying the stock heading into its Q4 earnings release on Tuesday, February 10.The growth stock is approaching its post IPO breakout peak from 2021. Robinhood's average Zacks price target offers 86% upside to its current price, and it's trading at its most oversold RSI levels in history.Why Investors Should Buy Robinhood StockRobinhood might still be viewed as a meme-stock-mania-app to a large pocket of investors. But that company and its users have come a long way since it first disrupted the industry with commission-free stock trading, which is now standard across most digital brokers, including Fidelity.HOOD is growing into a legitimate rival to Fidelity, catering to a large swath of investors and sophisticated traders with a growing portfolio. The company is now an S&P 500 member after it joined the illustrious group in September.HOOD said last quarter that it has "11 business lines each generating ~$100 million or more in annualized revenues." The company offers retirement accounts, crypto trading, futures, options, a browser-based desktop trading platform built for active traders, wealth management, prediction markets (to take on Polymarket), and more.The firm's paid Gold Subscribers increased by 77% YoY in Q3 to 3.9 million, while total investment accounts increased by 2.8 million, or 11% to 27.9 million.HOOD's average revenue per user soared 82% to $191 in the third quarter as part of a 100% YoY jump in total quarterly sales. Meanwhile, its earnings per share soared 259% to $0.61, helping it crush our bottom-line estimate for the fourth quarter in a row (26% average beat).Robinhood is projected to grow its adjusted EPS by 85% in 2025 and another 23% in FY26 to reach $2.48 a share, vs. a -$0.60 loss in 2023 and +$1.09 a share in 2024. HOOD's 2026 earnings outlook has jumped 9% over the last few months and 63% since last summer.The nearby chart shows that HOOD's earnings outlook has surged over the last two years, including a large charge in the back half of 2025 and recently. On top of that, its Most Accurate estimates came in above its already improved consensus.Robinhood's massive EPS expansion is supported by 53% projected revenue growth in 2025 and 22% higher sales in 2026 to hit $5.50 billion, up from $2.95 billion in 2024.Buy HOOD Stock Now On the Dip and Hold?The stock overtook its post-2021 IPO highs in the summer of 2025. Despite its 650% run in the past two years, which helped it blow away Nvidia and many other AI stocks, Robinhood's selloff has it testing those previous peaks. The bulls attempted to hold HOOD's 2021 highs on Wednesday.Robinhood is down nearly 50% from its early October peaks. HOOD is trading at roughly $75 a share, which means its average Zacks price target represents 86% upside from its current levels. The financial tech stock would also have to roughly double (+100%) to get back to its all-time highs of $150 a share.HOOD was due for a selloff to help it cool off. It is now trading at a 60% discount to its highs at 35.7X forward 12-month earnings.Robinhood also trades at a 75% discount to its highs in terms of its price/earnings-to-growth (PEG) ratio at 1.3, roughly matching the Zacks Tech sector—HOOD is up 130% since its IPO vs. Tech's 70% climb during that period.Some investors might want to test the waters on Robinhood now, and then see how Wall Street reacts when it reports its Q4 results and offers near-term guidance next week.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks