The S&P 500 index is trading near record highs, and the overall outlook for the market is likely to remain bullish. While GDP growth has decelerated, the markets seem to be discounting multiple rate cuts in the next 12 to 18 months. Besides supporting GDP growth, easy money policies are a shot in the arm for meme stocks.
In the last few months, handpicked meme stocks have skyrocketed. The euphoria is likely to be broad-based in the coming quarters. Therefore, it’s a good idea to allocate a small part of the portfolio to meme stocks for multibagger returns at the blink of an eye.
The following attractive meme ideas can deliver 200% returns within the next six months. Hot meme stocks can surge 3x to 5x in a matter of weeks. It is important to note these three are all penny stocks.* Thus, my target is on the conservative side. Let’s discuss the business catalysts that are likely to trigger a rally for these meme stocks.
Bitfarms (BITF)
Bitcoin (BTC-USD) has witnessed a steep correction in the last few trading days. Now is a good opportunity to buy undervalued crypto stocks. Bitcoin miner Bitfarms (NASDAQ:BITF) looks interesting with the stock being sideways in the last six months. Once Bitcoin trends higher, BITF stock is likely to surge on the back of stellar revenue and EBITDA growth potential.
Specifically, Bitfarms reported hash rate capacity of 10.4EH/s as of March. The company has guided for an increase in capacity to 21EH/s by the end of the year and further to 35EH/s by 2025. Even if Bitcoin traded in the range of $60,000 to $80,000, the capacity growth would translate into robust revenue and cash flow upside.
Notably, Bitfarms has strong fundamentals with a zero-debt balance sheet. And, the company has a liquidity buffer of $124 million. Therefore, high financial flexibility backs the company’s aggressive expansion plans.
Archer Aviation (ACHR)
In my view, electric vehicle take-off and landing (eVTOL) stocks are ready for a big take-off during the meme season. Archer Aviation (NYSE:ACHR) is among the top picks as the rally is likely to be backed by strong business developments.
It’s worth noting that ACHR stock had touched highs of $7.5 in August 2023. Last month, the stock traded at lows of $3. However, there has been a sharp rally of almost 50% from the lows. I believe ACHR stock is likely to make new all-times highs in the coming quarters.
Earlier this month, Stellantis (NYSE:STLA) invested an additional $55 million in the company after the flight test milestone was achieved. Also, United Airlines (NYSE:UAL) is an investor and strategic partner. The backing of some big investors underscores the potential the flying car company holds.
Importantly, Archer Aviation is positioned to commercialize eVTOL in the U.S. next year. Between 2025 and 2026, the company has partnerships to enter the UAE, India and Korea. This provides significant growth visibility so expect ACHR stock to discount these positives.
Entera Bio (ENTX)
Entera Bio (NASDAQ:ENTX) is a clinical-stage biotech company that looks attractive. The stock already had one big rally from 52 cents in December to $3.35 in April. This has been followed by a deep correction, and the stock now trades at $1.7, a good buying opportunity for multibagger returns.
As an overview, Entera Bio is working towards the commercialization of orally delivered peptides and other therapeutic proteins. The biotech company’s most advanced product candidate, EB613, is for the treatment of high risk, post-menopausal osteoporosis. Currently, the product is due for third phase of clinical trials. Further, the drug EB612 treats hypoparathyroidism and is presently in the first phase.
One factor that makes Entera Bio attractive is a huge addressable market for EB613. Globally, it’s estimated that more than 200 million women suffer from post-menopausal osteoporosis. Further, no new therapy has been approved since 2019. If EB613 continues to deliver positive trial results, ENTX stock will go ballistic.
*On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
