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Should Investors Consider HOOD Stock's Premium Valuation a Red Flag?
HOODRobinhood(HOOD) ZACKS·2024-12-30 22:21

Robinhood Markets’ (HOOD) shares are trading at a massive premium to the industry. At present, the company has a forward price/earnings (P/E) of 40.00X compared with the industry average of 13.95X.Price-to-Earnings F12M Image Source: Zacks Investment ResearchFurther, HOOD stock looks expensive compared with its peers -- Charles Schwab (SCHW) and Interactive Brokers (IBKR) . SCHW and IBKR have a forward P/E of 19.19X and 25.38X, respectively.Based on this, Robinhood stock isn’t a good investment option for 2 ...