Bull of the Day: Robinhood Markets, Inc. (HOOD)

Robinhood Markets (HOOD) carries a Zacks Rank #1 (Strong Buy) and 25% upside from current levels, even after a 30% pullback from its October 2025 peak.

The brokerage's latest quarter backs the rating. Q2 revenue grew 32% year over year, while earnings grew 48%. Earnings outpacing revenue by 16 percentage points suggests expanding profitability, though that is interpretation, not a reported margin figure.

Zacks frames HOOD as a legitimate competitor to Fidelity and Charles Schwab (SCHW). The case rests on breadth: 13 business lines each generating $100M+ in annualized revenue. That spread reduces reliance on any single revenue stream, which is our read of the diversification claim.

Two product moves add to the story. HOOD recently launched AI-powered agentic trading tools and announced 24/7 weekend trading capabilities. Neither comes with usage or revenue figures yet, so their financial impact remains unquantified.

The setup pairs strong fundamentals with a stock trading well below its prior high. A 30% drawdown against 32% revenue growth is the tension traders are weighing. Preferred shares SCHWPD and SCHWPJ sit in the same competitive frame as SCHW, though no performance data was cited for either.