The rules of investing have significantly changed over the years. That particularly holds true for investors looking for short-term gains. For a value investor, the best strategy is to buy when there is blood on the street and hold patiently.
For a trader, charts provide insight into the timing of entry or exit. However, in the last few years, exposure to stocks with high short interest or exposure to the best meme stocks has done wonders. The focus of this column is on meme stocks to buy that can skyrocket in the next few months.
An important point to note is that meme stocks are not always associated with purely speculative ideas. The meme stocks discussed in this column represent companies with good fundamentals and ambitious growth plans. Therefore, the upside in the next two quarters will likely be backed by positive business catalysts.
Let’s discuss the reasons to be bullish on the best meme stock ideas.
Riot Platforms (RIOT)
Amidst high volatility, Riot Platforms (NASDAQ:RIOT) stock has remained sideways in the last 12 months. The high-growth idea looks significantly undervalued at a forward price-earnings ratio of 23. I believe a strong breakout on the upside is in the cards in the coming months.
The first point to note is that Bitcoin (BTC-USD) halving is done, and the cryptocurrency seems to be in a broad consolidation range of $60,000 to $70,000. I expect new highs relatively soon on the back of halving and potential expansionary policies in 2024.
Bitcoin miners will likely perform, and RIOT stock is among the best names to consider. Specific to Riot, the first reason to be bullish is strong fundamentals. The company ended Q1 2024 with a total cash buffer (including Bitcoin holdings) of $1.3 billion. Further, with a zero-debt balance sheet, there is ample flexibility for aggressive investments.
At the end of Q1, Riot reported a deployed hash rate of 12.4 EH/s. By the end of the year, the target is to boost the hash rate capacity to 31.5 EH/s. Additionally, the company expects a capacity of 100 EH/s by 2027. With ambitious growth plans and strong fundamentals, RIOT stock will likely skyrocket.
Cronos Group (CRON)
I believe that it’s a good time to remain invested in cannabis stocks. Recently, Germany legalized cannabis. Further, with the presidential election around the corner, cannabis stocks will likely witness price action. A survey by Pew Research indicated that most Americans support the legalization of medicinal and recreational cannabis.
Cronos Group (NASDAQ:CRON) is among the most undervalued cannabis stocks to buy. CRON stock has been in an uptrend with returns of 29% year-to-date. I expect the stock to go ballistic on possible rescheduling of cannabis as a Schedule III drug.
An important point to note is that Cronos ended 2023 with a cash buffer of $862 million. That provides the company with high financial flexibility for organic and acquisition-driven growth.
It’s also worth noting that Cronos had a presence in Canada and Israel. Last year, the company initiated geographical expansion. Cronos has made inroads in the German and Australian medicinal cannabis markets. That will support growth acceleration.
Joby Aviation (JOBY)
My view is that 2025 will likely be a big year for some of the best flying car stocks. The reason is steady progress towards certification and commercialization next year. Joby Aviation (NYSE:JOBY) is among the quality eVTOL stock to buy for multibagger returns.
JOBY stock has been relatively subdued, with returns of 24% in the last 12 months. However, business developments point to a bigger rally in the coming quarters. Recently, Joby announced the progress to the next phase of its aircraft flight test program. The company will use its production prototype aircraft to prepare for upcoming for-credit flight testing.
In another important development, Joby acquired an existing facility at Dayton International Airport. That will support the scaling-up of operations to produce 500 aircraft per year. It’s also worth noting that Joby has been looking for expansion beyond the United States. The company has partnered with three Abu Dhabi government departments to establish Joby’s air taxi service.
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.
