Robinhood Among Top Stocks to Invest in After Recent Selloff—Is Now the Time to Buy?

Robinhood Markets, Inc. (HOOD) has faced a significant pullback from its record highs reached in late 2025, but underneath this volatility lies a compelling investment thesis for those seeking stocks to invest in. The financial technology firm has undergone a remarkable transformation from its early days as a commission-free trading app into a diversified brokerage giant competing directly with established players like Fidelity. Despite a 50% decline from its peak, the company has still delivered exceptional returns, rising 650% over a two-year stretch and significantly outpacing the performance of semiconductor leaders like Nvidia.

Currently trading near $75 per share, Robinhood’s average analyst price target suggests approximately 86% upside potential from current levels, making it a candidate worthy of consideration among quality stocks to invest in during market dislocations. The stock is testing critical technical support levels while its fundamental metrics paint a picture of accelerating growth and profitability.

From Meme Trading Platform to Institutional-Grade Brokerage

The original perception of Robinhood as a meme-stock trading app for retail speculators no longer captures the full scope of what the company has become. The firm achieved a major milestone by joining the S&P 500 index in September, a validation of its transformation into a legitimate financial services powerhouse. This evolution extends far beyond simple equity trading.

The company now operates 11 distinct business lines, each generating approximately $100 million or more in annualized revenue. These revenue streams encompass retirement accounts, cryptocurrency trading, futures and options contracts, desktop-based active trading platforms, wealth management services, and emerging ventures like prediction markets. This diversified approach insulates the business from over-reliance on any single product category.

Financial Performance: Accelerating Growth and Profitability

The financial metrics underlying Robinhood’s recent performance demonstrate substantial operational leverage. Paid Gold Subscribers—a key engagement metric—surged 77% year-over-year in the third quarter, reaching 3.9 million users. Meanwhile, total investment accounts expanded by 11% to 27.9 million, adding 2.8 million new accounts during the period.

Revenue generation per user has become increasingly robust. Average revenue per user jumped 82% to $191 in Q3, supported by a 100% year-over-year increase in total quarterly revenue. More impressively, earnings per share soared 259% to $0.61, crushing analyst estimates for the fourth consecutive quarter with an average beat of 26%.

Looking ahead, the growth trajectory appears intact. Analysts project adjusted EPS expansion of 85% in 2025 and an additional 23% in 2026, reaching $2.48 per share compared to losses of $0.60 in 2023 and earnings of $1.09 in 2024. Revenue is expected to expand 53% in 2025 and another 22% in 2026, reaching $5.50 billion from $2.95 billion in 2024. These forecasts have proven resilient even as consensus estimates have been revised upward throughout recent months.

Technical Setup and Valuation Opportunity

From a technical perspective, HOOD presents an intriguing setup for both tactical traders and long-term investors. The stock is testing its 2021 post-IPO breakout peak, a level that historically provides support or springboard points for subsequent moves. Relative Strength Index (RSI) readings have reached historically oversold levels, suggesting limited downside pressure from capitulation selling.

The valuation multiple has compressed significantly. At 35.7x forward 12-month earnings, HOOD trades at a 60% discount to its recent highs. More notably, the price-to-earnings-to-growth (PEG) ratio of 1.3 represents a 75% discount to levels seen earlier and aligns closely with the broader technology sector. This positioning is particularly noteworthy given that HOOD has appreciated 130% since its IPO compared to just 70% for the overall tech sector during the same timeframe.

Investment Considerations

For those evaluating stocks to invest in at current levels, several factors warrant consideration. First, the company’s fundamental transition from trading platform to diversified financial services provider provides a structural growth tailwind independent of market sentiment toward retail trading. Second, the valuation has become attractive relative to projected growth rates, reducing downside risk while maintaining substantial upside leverage. Third, the technical setup suggests capitulation-driven selling rather than deteriorating fundamentals.

However, investors should remain cognizant of the volatility inherent in fintech equities and the potential for macroeconomic headwinds to pressure financial markets more broadly. The next earnings release will provide updated guidance that could either reinforce the bull case or reveal unexpected challenges in the business.

At current levels, Robinhood represents a financially sound option among stocks to invest in for those with patience to hold through near-term volatility and conviction in the company’s ability to execute on its diversified growth strategy. The 86% upside potential combined with a technical support level provides an asymmetric risk-reward opportunity for disciplined investors.