BITF - 3 Meme Stocks to Buy for Multibagger Returns Before the End of 2024
2024-07-19 08:00:00 ET
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Besides the economic benefits, easy money policy is likely to translate into higher a level of speculative activity. Meme and penny stocks are therefore likely to be in the limelight. This column focuses on three meme stocks to buy that can skyrocket within the next six months.
An important point to note is that investors should remain cautious on the quality of stocks. In a meme euphoria, it’s easy to get tempted to buy stocks that are purely speculative with weak fundamentals. Investors should however focus on meme stocks to buy with reasonable fundamentals and potential business catalysts.
Let’s discuss three meme stocks that look undervalued and represent companies with reasonably good fundamentals.
Bitfarms (BITF)
Even with Bitcoin ( BTC-USD ) trending higher, Bitfarms (NASDAQ: BITF ) stock has remained sideways year-to-date. A key reason is the Bitcoin halving and its impact on mining and cost. However, I believe that this factor is discounted in BITF stock and a big rally is impending.
It’s worth noting that there are chances of Donald Trump being re-elected . In this scenario, I expect Bitcoin to trade above $100,000 and BITF can surge 3x to 5x in quick time.
Besides this factor, Bitfarms has undertaken aggressive expansion plans. The Bitcoin miner reported a hash rate capacity of 10.4EH/s in Q1 2024. The company is aiming to boost capacity to 21EH/s by the end of the year and further to 35EH/s by 2025.
With a zero-debt balance sheet and a strong liquidity buffer, I don’t see any financing concerns. Therefore, as capacity expansion is undertaken, revenue and EBITDA growth is likely to be robust.
EHang (EH)
It seems that flying car stocks are back in the limelight after a deep correction. In the last month, Archer Aviation (NYSE: ACHR ) and Joby Aviation (NYSE: JOBY ) has surged by 58% and 40% respectively. I expect a bigger rally for these eVTOL stocks in the coming quarters.
However, another interesting name is EHang (NASDAQ: EH ) and the stock has declined by nearly 30% in the last 12 months. Backed by positive business developments, I expect a big rally from current levels of $14.6.
In April, EHang had received approval from the Civil Aviation Administration of China for mass production of its EH216-S eVTOL. This has paved the way for scaling-up operations and the company’s order backlog has been swelling.
Further, EHang has been pursuing aggressive global expansion plans. The company has already conducted demo flights in Japan, Spain, UAE, Saudi Arabia and Costa Rica. Recently, EHang partnered with Southern Airlines General Aviation to boost the low-altitude economy in China. With all these positive developments, stellar revenue growth is in the cards. It’s therefore a matter of time before EH stock skyrockets.
Tilray Brands (TLRY)
Tilray Brands (NASDAQ: TLRY ) stock has trended higher by 8% in the last month. Even if we look at the 12-month period, the returns are the same. A big breakout rally seems to be on the cards for this undervalued cannabis stock.
One catalyst for Tilray Brands is the possible reclassification of cannabis as a Schedule III drug in the U.S. If this happens, I expect TLRY stock to double in a few weeks. It’s worth noting that the company raised $250 million through an at-the-market offering. The objective of this fundraiser is to expand in the U.S. (organic and acquisitions) once cannabis is reclassified.
Even if we leave this aside, TLRY stock looks undervalued. In Q3 2024, Tilray reported healthy growth in the cannabis segment. This was driven by the international medicinal cannabis business. With Q4 results due at the end of the month, I am bullish on strong numbers taking TLRY stock higher.
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.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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