Robinhood Markets ((HOOD Quick QuoteHOOD - Free Report) ) stock has soared 365% in the last 12 months to blow away its highly-ranked industry and the market.

HOOD’s run includes a 50% surge to start 2025. Robinhood stock is on the verge of surpassing its 2021 highs and breaking out to fresh records after its Q4 earnings release on Wednesday, February 12.

Robinhood has transformed from a free stock-trading app into a diversified online broker powerhouse competing for customers alongside the likes of Fidelity, Charles Schwab, and others.

Robinhood’s earnings outlook has surged. HOOD is projected to post impressive EPS and revenue growth in 2024 and 2025 as it establishes itself as a force in the digital financial age across stock trading, wealth management, cryptocurrencies and bitcoin, and beyond.  

HOOD: Why This Stock Looks Like a Great Buy-and-Hold Investment

Robinhood was founded over a decade ago to help “democratize” finance and investing. The company launched its commission-free trading app in 2013 when many popular online brokers’ commissions were $7 to $10 per trade.

Robinhood’s success change the industry forever, helping force the biggest players in the space such as Fidelity, Charles Schwab, and E*TRADE to transition to commission-free trading.

Robinhood has transformed from a popular pandemic-era trading app into a legitimate rival to Fidelity, catering to a larger swath of investors and sophisticated traders with its growing portfolio.

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Robinhood has rolled out retirement accounts, crypto trading, futures, options, and more. HOOD in October announced its Robinhood Legend, a browser-based desktop trading platform built for active traders.

Robinhood is also expanding into the robo-advisor and wealth management businesses. Meanwhile, Robinhood’s Gold service (which charges customers a small monthly fee), offers high APY on uninvested brokerage cash balances, retirement matching offerings, and more.

HOOD in November agreed to buy TradePMR, a custodial and portfolio management platform for Registered Investment Advisors (RIAs).

The new Trump administration’s pro-cryptocurrency outlook is expected to help boost Robinhood’s ability to expand its crypto ambitions. Wall Street is also glad Robinhood finalized its SEC settlement in January. 

Robinhood’s Growth and Expansion Outlook

Robinhood went public in the summer of 2021 after the Covid pandemic helped energize a new generation of investors (young and old) to join the stock market.

The company posted 90% revenue growth in 2021 soaring from $958 million to $1.82 billion. HOOD faced a down year in 2022 as the market tumbled. But it returned to impressive growth in 2023 to top its FY22 total.

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Flash forward to the third-quarter of 2024 and Robinhood grew its revenue by 36% YoY, driven by a 72% increase in “transaction-based revenues” such as options trading. Robinhood increased its total investment accounts by 1.5 million YoY to 25.1 million, with average revenue per user 31% higher.

Over the past twelve months ending in Q3 FY24, Robinhood’s net deposits jumped 45% (+$39.0 billion). HOOD's total “Assets Under Custody” climbed 76% YoY in Q3 to $152.2 billion, “driven by continued net deposits and higher equity and cryptocurrency valuations.”

Robinhood continues to make strides to win over active traders, with monthly active users up 7% to 11.0 million. Equity notional trading volumes jumped 65%, with options contracts traded up 47%, and crypto notional trading volumes 112% higher.

HOOD is projected to swing from an adjusted loss of -$0.61 a share last year to +$0.97 a share in 2024. Robinhood is expected post 20% higher earnings in 2025.

Robinhood’s earnings outlook has surged over the last year, including roughly 20% jumps for FY24 and FY25 in the last few months. The stock trading company’s 2025 earnings outlook has climbed 372% in the last year.

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Robinhood’s Most Accurate EPS estimates came in above consensus for Q4, FY24, and FY25. HOOD’s upward earnings revisions earn the stock a Zacks Rank #1 (Strong Buy), and it crushed our bottom-line estimate in three out of the past four quarters.

Meanwhile, Robinhood is projected to grow its revenue by 54% in FY24 and 22% in FY25 to hit $3.52 billion vs. $1.9 billion in 2023.

Is This Soaring Stock Ready for a Breakout?

Robinhood stock surged 50% to start 2025, hitting new 52-week highs on Monday heading into its Q4 earnings release due out after the closing bell on Wednesday, February 12.

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Robinhood’s recent run is part of a 370% surge during the last 12 months and 460% in the past two years to blow away its Financial-Investment Bank industry that ranks in the top 1% of over 250 Zacks industries.

HOOD stock is attempting to break out above its 2021 highs (outside of a huge short-term spike).

Robinhood might face selling pressure (even if it posts strong guidance on Wednesday) in the near-term if investors decide to take profits following its stellar performance.

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Despite its surge to 52-week highs, Robinhood’s valuation is improving. HOOD trades at a 45% discount to its 12-month highs at 47.1X forward 12-month earnings.

Robinhood’s PEG ratio, which factors in its EPS growth outlook, sits at 0.75 vs. its top-ranked industry’s 0.93 and the Tech sector’s 1.74.

Any pullback to Robinhood’s 21-day (roughly $49.90 a share) or 50-day ($43.87) might offer investors and traders great buying opportunities.