2 Dirt-Cheap Robinhood Stocks that Could Skyrocket

Based on trading patterns, it appears that some investors who use the Robinhood investing platform are interested in beaten-down companies that could soar back to life. It’s a risky strategy, but it can deliver life-changing returns if things go as planned…

Let’s explore the reasons why two widely held stocks on the platform — General Motors (NYSE:GM) and Virgin Galactic (NYSE:SPCE) — could potentially skyrocket by pivoting to new growth opportunities. 

1. General Motors

With a share price of $53 at the time of writing, General Motors has recovered substantially from its 52-week low of $14.33 a share. But with a market cap of just $75 billion, the stock still looks dirt cheap when compared to its electric-vehicle manufacturing rivals. The market might be underestimating GM’s electric vehicle opportunity, and shares could surge as the business picks up speed.

Consulting firm Deloitte expects global electric vehicle sales to expand at a compound annual growth rate (CAGR) of 29% to 31.1 million units a year by 2030 as consumers switch away from internal combustion vehicles. With such a fast-growing opportunity, it’s no surprise that investors are willing to assign big valuations to the current front runner. 

Tesla trades at 200 times forward EPS, while GM at just nine times its forward earnings, potentially making the stock a good deal compared to its high-flying rival.

Management for General Motors said the automaker plans to end production of all diesel and gasoline-powered cars, trucks, and SUVs by 2035 and is spending $27 billion to develop 30 new electric and autonomous vehicles by 2025. Management has also launched a new business unit called BrightDrop that will focus on the commercial side of the EV industry.

So far, BrightDrop has developed an electrically powered moving pallet called EP1 and a commercial electric van called EV600, with plans to deliver 500 vehicles to FedEx later this year. 

2. Virgin Galactic

It might be an understatement to say Virgin Galactic “could” skyrocket because it is already soaring. Swept up in the marketwide frenzy for heavily shorted companies, shares in this space tourism business have risen by a very strong 105% year to date. But with a market cap of just $12.6 billion, the stock still looks affordable compared to its long-term potential. 

Virgin Galactic is hard to value because…

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