HOOD Stock Clocks Best Month In 2026: Growth Story Intact Despite Crypto Weakness, Says Analyst

• The analyst forecast 10-year compound annual growth rates of 13% for revenue, 14.2% for operating profit, and 17.3% for diluted earnings per share for the company.
• While Morningstar said that Robinhood shares remain expensive relative to its fair value estimate, it reiterated that the company’s long-term growth narrative remains intact.
• Last week, Mizuho raised the price target on Robinhood to $115 from $110 and maintained an ‘Outperform’ rating on the shares, indicating nearly 22% upside from its previous close.

Robinhood Markets Inc. (HOOD) posted its best month in 2026 in May, climbing more than 29% despite missing revenue expectations in its latest quarter due to weaker cryptocurrency trading activity.

However, Morningstar believes that the company’s long-term narrative is intact amid its efforts to diversify beyond cryptocurrency transaction revenue. The report comes shortly after the financial platform garnered a series of price target hikes from Wall Street analysts last week, following the launch of its AI-powered agentic trading system.

Meanwhile, Cathie Wood’s ARK Invest sold 144,218 shares of the company on Friday, booking profits as the stock surged more than 11% at close.

Morningstar On HOOD

While the financial company posted $1.07 billion in quarterly revenue in late April, missing the analyst’s estimate due to weaker-than-expected transactional revenue amid low industry-wide volumes, Morningstar highlighted its momentum in net deposit growth and expressed optimism about its credit card program and prediction market joint venture.

“As we digest results, we've raised our fair value estimate for narrow-moat Robinhood to $52 per share from $50, largely attributable to the time value of money,” the analyst said.

Morningstar also updated the longer-term outlook for the firm, adding that it remains “quite constructive,” amid forecasts calling for 10-year compound annual growth rates of 13% for revenue, 14.2% for operating profit, and 17.3% for diluted earnings per share.

The analyst also flagged Robinhood’s expansion beyond trading. The firm said that Robinhood banking was approaching $2 billion in deposits shortly after launch, while its retirement accounts have grown to $27.4 billion in assets, adding that these could “gradually reduce the likelihood of customer ‘graduation’ to larger incumbent platforms as clients age and accrue assets.”

The analyst highlighted in its report that Robinhood could be one of the larger beneficiaries of a significant anticipated intergenerational wealth transfer in the U.S., with a median customer age of just 35 years old.

While Morningstar said that Robinhood shares remain expensive relative to its fair value estimate, it also reiterated that the company’s long-term growth narrative remains firmly intact.

Wall Street Optimism On HOOD

Last week, Mizuho raised the price target on Robinhood to $115 from $110 and maintained an ‘Outperform’ rating on the shares, indicating nearly 22% upside from its previous close. The firm highlighted the company’s launch of its Agentic Trading in beta, as per TheFly.

Deutsche Bank also raised the price target on Robinhood to $88 from $85 and kept a ‘Buy’ rating on the shares. According to data from Koyfin, HOOD stock has a 12-month average price target of $98.77 based on 27 analyst estimates, indicating nearly 5% upside from its previous close.

Of the analysts covering the stock, 19 have a ‘Buy’ or higher rating on the company’s shares, while five analysts rate it a ‘Hold’ and the remaining three have a ‘Sell’ or lower rating.

HOOD Latest Product Launches

In 2026, Robinhood launched AI-powered investing tools, including an agentic trading platform that enables AI agents to manage portfolios and execute trades on users' behalf. It also introduced an AI-enabled credit card that can make purchases within user-defined limits.

Earlier in the year, the company launched Robinhood Ventures Fund to give retail investors access to late-stage private companies. The company is also involved in the Trump Accounts initiative, after being selected as the sole broker-dealer and initial trustee for these accounts.

HOOD Stock: Retail Stance

On Stocktwits, retail sentiment around HOOD shares jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours amid ‘high’ message volumes.

Retail investors discussed the potential for the stock to soon breach $100. One user said, “likely to see 100+ in the next couple of days with agentic AI features and removal of PDT.”

Another bullish user supported the view, saying, “Looks like it wants $100. Bought a chunk on the 24-hour market for a swing.”

Shares of the company were trading around $95.58 at the time of writing. HOOD has gained more than 38% in the past 12 months.

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