Prediction: This Stock Could Deliver Outsize Returns by 2027

Many investors hunt for maturation stocks that tin present outsize returns, hoping to acceptable themselves up for status and/or make much fiscal flexibility. One mode to find these types of stocks is to look astatine past winners. While past results don't warrant aboriginal outcomes, investors tin analyse the fundamentals of 2025's winners and inquire whether those companies person what it takes to support increasing successful 2026.

Robinhood Markets (NASDAQ: HOOD) was 1 of the apical fintech stocks past year. The stock's terms astir tripled successful 2025, and it looks acceptable to widen its gains into the caller year. Robinhood's underlying concern is inactive growing, including a comparatively caller conception that's gaining a batch of momentum.

Trading measurement is simply a decisive origin that influences Robinhood's financials. If radical commercialized stocks, crypto, and different assets much often, Robinhood earns more. Younger generations person embraced banal investing to compound their wealthiness faster. The accessibility of banal trading done mobile apps has made it easier for younger radical to get started aboriginal and enactment much of their wealth into fiscal markets.

Robinhood's third-quarter 2025 results showed however rising enthusiasm from young investors tin effect successful higher trading measurement and important gross growth. Total income doubled twelvemonth implicit year, portion nett income much than tripled twelvemonth implicit year. Robinhood besides closed the 4th with a 43.6% nett net margin, which indicates the institution keeps a ample information of its revenue.

Crypto was a large catalyst for this growth, with transaction gross from that plus people up by much than 300% twelvemonth implicit year. Elsewhere, investors are borrowing a batch of wealth to get much vulnerability to equities. That's based connected Robinhood's nett involvement gross expanding by 66% twelvemonth implicit year. Robinhood earns involvement erstwhile radical instrumentality retired borderline loans against their portfolios. Traders and investors who usage borderline against their portfolios are much apt to beryllium progressive and commercialized much often, which boosts Robinhood's transaction-based revenue.

Robinhood closed the 4th with 27.9 cardinal users, and it's realistic for the fintech institution to transverse 30 cardinal users successful Q4. That idiosyncratic basal has traded stocks, crypto, and different assets, but a caller conception successful Robinhood's concern is rapidly gaining momentum.