ACHR - 3 Meme Stocks to Buy Now: June 2024

2024-06-18 06:54:00 ET

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

The meme stock frenzy of 2021 changed the lives of several investors. Massive wealth was created as speculation skyrocketed and meme stocks went ballistic. In my view, another meme stock euphoria seems to be brewing and investors can look at meme stocks to buy now for massive upside.

An important point to note is that a meme stock rally takes little consideration for fundamentals or valuation. However, I would prefer to remain on the safe side and look at meme stocks that represent companies with attractive upside potential from a fundamental perspective. Further, the companies discussed have business catalysts that can magnify the meme frenzy-driven upside potential.

In terms of a broader catalyst, the Fed is likely to pursue rate cuts before the end of the year. The beginning of easy money policies is a catalyst for increased speculative activity. Let’s, therefore, discuss three meme stocks to buy that can deliver multi-fold returns in the blink of an eye.

Riot Platforms (RIOT)

Riot Platforms (NASDAQ: RIOT ) seems among the most attractive meme stocks to buy. Valuations don’t matter in a meme frenzy. However, it’s worth noting that RIOT stock trades at a forward P/E of 15. Even if the meme euphoria is ignored, the stock is poised for multibagger returns from current levels.

Notably, Bitcoin ( BTC-USD ) has been consolidating around $70,000. Once there is a fresh rally, crypto miners will likely surge higher. With rate cuts likely in the coming quarters, there is a strong case for Bitcoin trading above $100,000.

Specific to Riot, the company’s fundamentals are strong, with a zero-debt balance sheet. Further, a cash buffer of $1.3 billion (including digital assets) provides ample flexibility for aggressive Bitcoin mining capacity expansion.

As of Q1 2024, the Bitcoin miner reported a hash rate capacity of 12.5EH/s. By the end of the year, the target is to boost capacity to 31.5EH/s. This will translate into stellar revenue and cash flow growth. Therefore, with multiple catalysts, RIOT stock seems poised for a breakout rally.

Canopy Growth Corporation (CGC)

Canopy Growth Corporation (NASDAQ: CGC ) stock has trended higher by 41% for the year to date. With positive regulatory news related to cannabis, CGC stock will likely skyrocket.

Earlier this year, Germany legalized cannabis, which is a big catalyst for Canopy Growth. The company has a strong presence in the country and is likely to see accelerated growth. David Klein, the CEO of Canopy Growth, believes that the market in Germany will expand from a “little bit less than a $500-million market to over a $2.5-billion market over the next two years.” The opportunity size is significant.

Canopy has also announced a $250 million at-the-market offering . The proceeds will be used for potential acquisitions and to accelerate organic growth. The correction in CGC stock due to dilution is a good accumulation opportunity.

It’s worth adding here that Canopy has undertaken several cost-reduction initiatives. This has already translated into narrowing EBITDA-level losses. Continued improvement in margin is another catalyst for CGC stock’s upside.

Archer Aviation (ACHR)

Archer Aviation (NYSE: ACHR ) is among the best meme stocks to buy for two reasons. First, ACHR stock has witnessed a sharp correction of 48% year-to-date. The stock seems oversold and is a good candidate for a sharp reversal rally.

Further, in the first week of June, the eVTOL company received U.S. Federal Aviation Authority certification for operating commercial airlines . This is an important step toward the commercialization of flying cars in 2025.

Among the positives, Archer is also preparing to scale up operations. The manufacturing facility is under construction and will have an annual capacity of 650 eVTOLs. With plans for expansion in UAE, India and Korea in the next 24 months, Archer is positioned for stellar growth.

I must add here that Morgan Stanley believes the eVTOL market will be worth $29 billion by 2030 and will swell to $1 trillion by 2040. Depending on the company’s execution capabilities, the stock is a potential millionaire-maker.

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 .

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