Product Expansion and International Momentum to Drive Returns in 2026 for Robinhood (HOOD)

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Product Expansion and International Momentum to Drive Returns in 2026 for Robinhood (HOOD)

Muhammad Ali Khalid

Thu, February 19, 2026 at 2:08 PM GMT+9 2 min read

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  •                                       StockStory Top Pick 
    

    HOOD

    -0.30%

Robinhood Markets (NASDAQ:HOOD) is one of the 12 oversold financial stocks to invest in according to hedge funds.

On February 11, James Yaro of Goldman Sachs maintained a Buy rating on Robinhood Markets (NASDAQ:HOOD). However, he reduced the price target from $152 to $130, which leads to a revised upside of more than 71%.

Photo by Nicholas Cappello on Unsplash

Yaro reflected on the company’s core EPS of 61c, which missed consensus estimates by 4% amid slightly softer revenues, leading to a mixed market response. However, leadership remains optimistic about 2026 based on a notable acceleration in customer activity, rising deposits, impressive product expansion, and international momentum.

On February 11, the price target for Robinhood Markets (NASDAQ:HOOD) was reduced from $135 to $100 by Needham analyst John Todaro, who also maintained his Buy rating on the stock. This downward revision now leads to an upside potential of almost 32% from the prevailing level.

The analyst pointed towards the company’s promising fourth quarter results, which met expectations. Notably, Prediction markets showed exceptional momentum with January volumes reaching an all-time high of 3.5 billion contracts. Todaro predicted near-term weakness in crypto activity for the next two quarters, with a gradual recovery later in the year.

Robinhood Markets (NASDAQ:HOOD) is a financial technology platform that enables retail investors to make commission-free investments across diverse financial securities. These include ADRs, cryptocurrencies, ETFs, gold, options, and shares. It offers various services such as fractional trading, securities lending, margin trading, around-the-clock trading, joint investments, future contracts, and others.

While we acknowledge the potential of HOOD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. This article is originally published at Insider Monkey.

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