As we come close to the end of the year, it’s time to strategize for 2024 and introspect on the investment decisions taken this year. At the same time, investors look for stocks that can skyrocket at the blink of an eye. Truthfully, almost nothing compares financially to making some quick money in the holiday season for a spending binge.
However, expecting a 100% Santa Claus rally in just a month doesn’t imply that the following stocks are speculative. These stocks represent companies with decent business fundamentals. Based on the business developments, it would be prudent and smart to remain invested in these stocks for long term.
For now, the focus as a trader is to see a target of a 100% rally achieved. Let’s discuss the reasons to be bullish on these stocks.
Riot Platforms (RIOT)
Bitcoin (BTC-USD) has surged past $35,000. Some investors remain bullish on the cryptocurrency.
A proxy for exposure to Bitcoin is through miners. Riot Platforms (NASDAQ:RIOT) is among the best names to consider in the Bitcoin mining industry. If Bitcoin trends higher to $50,000 levels, RIOT stock is poised to double before Santa Claus arrives.
Specific to Riot Platforms, two bullish reasons resound. First, Riot is debt free and has a total cash buffer (including digital assets) of $488 million. With high financial flexibility, the company is positioned for aggressive expansion.
Second, for Q3 2023, Riot reported revenue and EBITDA of $51.9 million and $31.6 million, respectively. A healthy EBITDA margin of 61% implies that the company is a low-cost miner. With Bitcoin trending higher, Riot is positioned for healthy cash flows.
Importantly, the company plans to increase mining capacity by almost 3.5x by 2025 (from 10.9EH/s as of Q3 2023). Therefore, revenue and EBITDA growth will likely be stellar in the next 24 months.
Joby Aviation (JOBY)
Electric vertical take-off and landing aircraft (eVTOL) has been a hot investment theme for the year. The reason is the potential commercialization of eVTOL in the next 12 to 24 months. Joby Aviation (NYSE:JOBY) had touched highs of $12 in July.
However, the stock has corrected to current levels of $5.5. JOBY stock is poised to touch previous highs before Santa arrives. The stock has a short interest of 17%. A short-squeeze rally could deliver robust returns.
Positive business catalysts indicate the company has completed 84% certification from the Federal Aviation Authority (FAA). Once all certifications are received, a surge is likely in the coming months.
Further, Joby has already delivered its first electric air-taxi to the U.S. air force ahead of schedule, part of its $131 million contract with the Department of Defense (DOD). With positive business developments and a sharp correction from highs, JOBY stock seems poised for a big reversal rally.
Blade Air Mobility (BLDE)
Blade Air Mobility (NASDAQ:BLDE) is a provider of air transportation alternatives to congested ground routes in the United States. The stock is surging by 44% in the last month alone. Thus, the big Santa Claus rally is likely to sustain on the back of positive financial metrics.
Recently, the company reported Q3 2023 results. Revenue increased by 56% on a year-on-year (YOY) basis to $71.4 million. More impressively, the company reports a positive adjusted EBITDA of $0.8 million. With healthy growth, investors should expect significant EBITDA margin expansion in the coming quarters. This factor is likely to be discounted in BLDE stock in the next few months.
In terms of revenue acceleration catalysts, BLDE’s group of MediMobility Organ Transport revenue surged by 65.4% YOY to $33.4 million. Also, the company announced a new medical business line, Trinity Organ Placement Services. The objective is to help “transplant centers determine if an organ is a match for a potential recipient.” With these positives, BLDE stock looks massively undervalued even after the recent surge.
On the date of publication, Faisal Humayun did not hold (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.
