Cheapest Stocks on Robinhood

Invest in the cheapest stocks on Robinhood today and gain access to low fees and commissions.

Stock investors accumulate shares of their favorite companies and wait for prices to increase over time. However, what happens if your favorite companies are out of your budget? You can buy fractional shares, but some investors prefer to own entire shares of their investments. If you look for cheaper stocks, it’s also possible to buy hundreds of shares, something that becomes less feasible for companies valued at $100+ per share. This list will cover some of the cheapest stocks you can find on Robinhood. 

8 Cheapest Stocks on Robinhood

Affordable stocks help investors enter the stock market with entire shares instead of relying on fractional trading. While fractional trading has its benefits, buying cheap stocks helps you use spare change to acquire entire shares. This list of cheap Robinhood stocks is a useful starting point.

1. Snap Inc. (NYSE: SNAP)

SnapChat is a social network with over 750 million monthly active users and over 250 million daily active users. The company is more volatile than most social media stocks but has a user base trending on the young side. Over 75% of SnapChat’s users are 13-34 years old. A younger demographic may give SnapChat more staying power in the industry and can help the company rebound. You can snap up shares for roughly $11 per share.

2. Palantir Technologies Inc. (NYSE: PLTR)

Palantir is a big data company set to thrive in the age of artificial intelligence (AI). The company has long-term contracts with multiple governments and is expanding into other areas like healthcare. Palantir has double-digit year-over-year revenue growth and has reported a profit in each of the past two quarters. Shares have more than doubled since the start of the year but are still affordable. 

3. Marathon Oil Corp. (NYSE: MRO)

Marathon Oil surged from its pandemic bottom but has traded sideways over the past year. Revenue and net income have declined a bit, but the company still enjoys profit margins between 25% and 45%. The company has a dividend yield near 2% and has raised its dividend multiple times in recent years. Most dividend-paying companies only raise the dividend once a year.

4. American Airlines Group Inc. (NASDAQ: AAL)

American Airlines still has not reached its pre-pandemic highs despite the airline industry showing signs of recovery. While revenue and earnings numbers are roughly back to pre-pandemic figures, the airline has not reinstated its dividend. Robinhood investors may be loading up on this stock, believing it will return to its pre-pandemic price of approximately $30 per share. The company recently raised its profit forecast, adding more fuel to the investment thesis.

5. Verizon Communications Inc. (NYSE: VZ)

Verizon has been losing value for investors over the past year but is the more reliable telecom giant. While revenue was slightly down in the first quarter, net income jumped 7.18% year-over-year, giving the company more resources to support the dividend. Verizon mainly attracts investors seeking passive income, as its 7% dividend yield is hard to beat.

6. Bank of America Corp. (NYSE: BAC)

Bank of America is one of the banks the Federal Reserve deems as “too big to fail.” This terminology suggests the Federal Reserve would rescue the bank if it indeed showed signs that it might be in trouble. While the Fed is ready to protect the bank if necessary, the company is doing fine. Within days of the Silicon Valley Bank fallout, Bank of America received an additional $15 billion in deposits. As more consumers and business owners put their money into large banks, firms like Bank of America stand to benefit.

7. Robinhood Markets Inc. (NASDAQ: HOOD)

A messy IPO and the company’s decision to restrict users from buying Gamestop shares during the height of the stock meme bubble haven’t deterred investors. The innovative company has a market cap approaching $10 billion and reported strong top-line revenue growth to start 2023. Net income remains an issue, with the company not reporting profits at the moment. However, the stock holds a spot in Robinhood’s “100 Most Popular” list.

8. Sirius XM Holdings Inc. (NASDAQ: SIRI)

Sirius XM didn’t have the best quarter and saw its stock price fall below $5 per share. Despite the drop, Robinhood investors have been scooping up the affordable company. Sirius XM is profitable and has a dividend yield hovering above 2.50%. It won’t cost much to buy 100 shares of the company, but Sirius XM’s growth days appear to be in the rearview mirror. It has only achieved low single-digit revenue growth over the past year and has a price-to-earnings (P/E) ratio of 13. 

Types of Stocks on Robinhood

Robinhood lets you trade thousands of stocks that are on the major exchanges. You can trade stocks across several sectors and at varying price points. You can find stocks under $10 or expand your search to stocks priced well above $100 per share.

How to Pick Stocks on Robinhood

The Robinhood 100 Most Popular list lets investors know what other investors are doing. However, it’s not a good idea to blindly pick stocks or do so based on someone’s recommendation. Investors should create criteria and identify their financial goals before buying stocks. This background work will lead to better research and help them distinguish good stocks from ones that do not align with their objectives. If you are on the fence about a stock, you can add it to your watchlist and stay on top of it. A lower entry point may come in the future.

Other Top Brokers for Buying Cheap Stock

Robinhood has revolutionized stock brokerage and ushered the path to zero-fee commissions. However, other brokers have caught up, and it’s important to compare several choices before deciding on the right broker for you.

Building Your Stock Portfolio

Buying affordable stocks lets you quickly add shares to your portfolio. It may be more feasible to own 100 shares of a $10 stock than to buy that many shares of a stock valued at $500 per share. While fractional trading has made any stock more accessible, some investors aim for the 100-share milestone so they can start trading options. Knowing what you want from your portfolio and setting long-term financial goals can help you make better decisions with your portfolio.

Frequently Asked Questions 

Best Cheap Stocks on Robinhood Methodology

These cheap Robinhood stocks came from Robinhood’s 100 Most Popular, a list that ranks the stocks garnering the most conviction from Robinhood users. The aim of this list was to select stocks with a low price per share. Verizon is the only stock on this list that exceeds $30 per share in late June 2023. Only two other stocks (BAC and MRO) exceeded $20 per share.