As the financial landscape evolves rapidly, it’s tough to ignore the powerful influence of the Reddit community. Through forums such as r/WallStreetBets, this passionate digital collective has emerged as a robust force, driving the narrative around the best Reddit stocks.
What began as an online platform for sharing investing insights has evolved into a powerhouse of strategic considerations. This community exchanges valuable perspectives on stocks that can potentially deliver above-average returns.
Contrary to the stereotype of Reddit users wagering on risky assets, this article takes a different route. It shines a spotlight on trending stocks in the Reddit community, ones that defy the typical high-risk investing mold, thus revealing a fresh perspective on the top Reddit stocks to buy. The essence here is not just about risk-taking, but strategic investing.
Best Reddit Stocks: Lululemon (LULU)
Following a powerful first-quarter earnings report, high-end athletic apparel retailer Lululemon (NASDAQ:LULU) has been ticking in the green. With an impressive 24% surge in sales to $2 billion and a 14% year-over-year increase in comparable sales, the company’s financials are mighty impressive. Moreover, its robust figures and upward guidance revision were met with a surge of investor optimism, especially as Lululemon sidestepped consumer demand warnings that have plagued other retailers.
Furthermore, international expansion appears to be at the heart of Lululemon’s strategy, with plans to inaugurate 30 to 35 new stores in 2023, primarily in China. Despite international sales only accounting for a modest 16% of total revenue in 2022, the company has set a goal to quadruple business outside North America between 2021 and 2026.
Given its rock-solid performance of late, consensus estimates point to more than 14% upside from current price levels.
Palantir (PLTR)
Palantir (NYSE:PLTR), the Big Data giant, has been turning heads of late. This largely has to do with its recent foray into AI, heralded by the introduction of its Artificial Intelligence Platform (AIP), a potential game-changer in the defense sector. The initial AIP release to select customers has spurred considerable investor interest.
Moreover, Palantir’s strong financial performance continues to boost its bull case. Achieving GAAP net income profitability for the second consecutive quarter and an impressive 24% adjusted operating margin is no small feat. Layer that up with an 18% year-over-year revenue increase and a robust 36% free cash flow margin, and the firm will continue to showcase its financial prowess.
Furthermore, it rounded off the last quarter with a staggering 64 deals worth $1 million ore more. This includes 22 worth at least $5 million and eight exceeding $10 million. The stage is set for Palantir to continue its remarkable growth trajectory.
Best Reddit Stocks: Tesla (TSLA)
Resilience is a hallmark of electric vehicle (EV) giant Tesla (NASDAQ:TSLA). Despite experiencing a painful fall last year, TSLA stock has bounced back in style, doubling in value so far in 2023. Admittedly, the company currently operates in an unfavorable business environment, having reported a 24% year-over-year decline in net income due to slowing consumer spending on high-value items.
However, there are many reasons to remain bullish on TSLA. A look ahead reveals an enticing pipeline of new models, including the Roadster, Cybertruck and Semi, offering strong delivery growth over the long term. Further enhancing Tesla’s appeal are its ambitious plans for expansion throughout the decade, potentially manufacturing 20 million cars annually by 2030. The potential addition of multiple new Gigafactories will further improve revenue and earnings growth.
Moreover, it’s worth highlighting Tesla’s formidable cash flow generation. Last year alone, the company reported $14.7 billion in operating cash flows. With such strong financial flexibility, Tesla can continue to make significant investments without taking on undue leverage.
Apple (AAPL)
Regarding tech giants whose products have become ubiquitous, Apple (NASDAQ:AAPL) is top-tier. With a passionate fanbase that shows no sign of shrinking, this innovative powerhouse remains a no-brainer in most investment portfolios. It’s been making waves after revealing its $3,500 AR/VR headset, marking its biggest product launch in a decade and fueling the bullish outlook for the company’s wearables segment.
There are several compelling reasons to remain bullish on Apple for the next several years. First and foremost, the company’s financial flexibility is impressive, with annual operating cash flows exceeding $100 billion.
Moreover, while the iPhone remains Apple’s main revenue driver, its services and wearables segments are projected to experience significant growth in the coming decade. Its service offerings, including Apple Pay, Apple TV+, Apple Music, and iCloud, amounted to all-time high revenue of $20.9 billion in the most recently reported quarter, a 5.5% year-over-year increase.
Given these indicators, there’s plenty to look forward to with Apple.
Best Reddit Stocks: Goldman Sachs (GS)
As a top dog in the investment banking sphere, Goldman Sachs (NYSE:GS) continues to show its mettle with its diversified revenue stream and a consistent track record of profitability. In its most recent quarter, its assets under management swelled to a record $2.67 trillion.
The banking giant is undergoing a strategic reset to stimulate business growth. As the year progresses, expect aggressive mergers and acquisitions from the bank as it looks to expand on its growth trajectory. As bank valuations teeter, Goldman Sachs is poised to seize the opportunity to incorporate companies that align with its strategic goals.
In a bid to become a leaner organization, Goldman Sachs initiated another round of layoffs, its third since September 2022. These efforts are part of a broader strategy to minimize balance sheet density by $2.3 billion and trim its principal investment portfolio to under $15 billion by the end of next year. Through these measures, Goldman Sachs aims to lower its exposure to the risk of depreciating asset values.
Chemours (CC)
Chemours (NYSE:CC) is a pillar of stability in the chemicals and basic materials industry, presenting a long-term appealing investment prospect in 2023. As the investing climate pivots from high-risk growth to value, CC shares stand an incredible chance of retaining their worth.
Profitability metrics for the firm are almost in line with its historical averages, with a strong liquidity positioning. For instance, its cash per share is $5.47, exceeding the industry median by 258%. Moreover, investing in it comes with a dividend, yielding more than 3% with 5-year growth at 20.1%.
Additionally, TipRank’s analysts estimate 25.3% upside from current price levels. Hence, for those seeking a steady hand in the ever-shifting market landscape, casting a vote favoring Chemours might be a smart move.
Best Reddit Stocks: DTE Energy (DTE)
DTE Energy (NYSE:DTE) is a diversified energy juggernaut based in Detroit, Michigan, powering the lives of millions with its electricity and natural gas operations. As a regulated entity, it provides stable returns for investors, bolstered by healthy stock price appreciation and a robust dividend yield. Its dividend payouts have grown for 13 consecutive quarters, now yielding a healthy 3.4%. Moreover, it has generated a total return of more than 171% in the past decade.
However, it’s not just about financial returns as the firm continues to make major strides in sustainability, underlined by its sizable investments in renewable energy sources. Its commitment to clean energy was exemplified when DTE Electric funneled over $750 million into renewable resources during the first quarter. It kickstarted operations at Michigan’s largest wind park during the same quarter. Therefore, the company’s blend of financial stability and environmental responsibility will continue solidifying its market position.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
