It’s already been a roller coaster ride for Bitcoin in 2021, and the year is still young.
However, I wouldn’t be surprised if bitcoin offers solid returns over the next 11 months. On the flip side, I also think Robinhood investors like several stocks that could generate even higher returns. Here are three popular stocks on the no-charge trading platform that could be better than Bitcoin in 2021.
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1. ETF ARK Innovation
OKAY, ETF ARK Innovation (NYSEMKT: ARKK) is really not a stock. It’s an exchange traded fund (ETF) that trades like a stock, however. It is also popular with Robinhood investors. I think ARKK deserves its praise. In fact, in my opinion, ARKK ranks among the Robinhood stocks most likely to skyrocket in 2021.
ARKK was a big winner last year with a 149% return. While it hasn’t outperformed bitcoin, I think the story may change in the future.
On the one hand, ARKK has Cathie Wood at the helm. She is without a doubt one of the most accomplished investors on the scene today. With this particular ETF, Wood has a special opportunity to shine by focusing on stocks of companies with enormous break-out potential.
We could talk about many ARKK holdings that are expected to generate huge gains this year, but I’ll highlight just two. I think Roku and Square will benefit from two unstoppable trends – connected TV and digital payments, respectively. ARKK also has dozens of other big stocks that could help it outperform bitcoin in 2021 as well.
2. Hexo
Some might think 2021 will be a banner year for cryptocurrencies. I suspect it will be an even bigger year for marijuana stocks. If I’m right, that could bode well for Robinhood’s favorite Hexo (NYSE: HEXO).
Granted, Hexo looked like anything but a stock that you would want to own last year. Its shares plunged 42%. However, sharp declines were common among Canadian pot inventories. But things are definitely improving now.
Don’t be surprised if the Democrat-controlled US Congress moves forward this year with legislation that decriminalizes marijuana. If such a bill passes and is enacted by President Biden, it could pave the way for Hexo to enter the lucrative US cannabis market while retaining its listing on the New York Stock Exchange.
Hexo is already present in the US market in a way. Truss CBD USA, a joint venture formed by Hexo and its major partner Molson coors, began marketing CBD-based soft drinks in Colorado earlier this month. I think cannabis reform at the federal level could open up a much bigger opportunity for Hexo (maybe with Molson Coors by his side) and cause that battered pot stock to beat bitcoin this year.
3. Inovio Pharmaceuticals
Perhaps the most critical milestone for the world this year will be the massive deployment of COVID-19 vaccines. The vaccine developed by Inovio Pharmaceuticals (NASDAQ: INO) could be part of those administered in 2021.
Inovio delivered an exceptional performance last year, with a 168% increase in its shares. However, that gain could be a drop in the bucket if biotechnology’s INO-4800 COVID-19 vaccine proves to be safe and highly effective.
It will be later in the year before we know more about the true potential of INO-4800. Inovio is currently evaluating the investigational vaccine in a phase 2 clinical study.
The biotech stock, however, could have another major catalyst on the way. Inovio plans to publish the results of an advanced study of VGX-3100 in the treatment of precancerous cervical dysplasia in the first half of 2021. The positive results of this study could pave the way for a regulatory filing for VGX-3100.
An important warning
Can these three stocks really overtake Bitcoin this year? I think so. However, there is no way to be sure this will happen. Although I love ARKK, I do not recommend Hexo or Inovio at this time.
My opinion is that there are even better marijuana stocks than Hexo that Robinhood investors cannot buy. The trading platform restricts access to most over-the-counter (OTC) stocks. Currently, not all US-based multi-state cannabis operators can list their stocks on major US stock exchanges and are only available on OTC markets. I also think that while Inovio’s INO-4800 has potential, there are more interesting stocks of COVID-19 vaccines to buy.
These popular Robinhood stocks might be better than Bitcoin – but there are other stocks that could be better than them.
