In fact, considering GME’s continued declines, and AMC’s capitulation in recent weeks, you may think that the meme stock phenomenon has completely gone the way of the dodo.
However, even as the stocks that sparked this investing phenomenon in early 2021 has retreated to more rational prices, a crop of new stocks have experienced meme waves of their own so far this year.
Although speculators have traded these names more cautiously compared to more than two years back, this factor can still create interesting near-term trading opportunities.
Not only that, even if the top two meme names are performing poorly and have questionable future prospects, other stocks boosted during the initial “meme mania” may just well be in the buy zone at current prices.
With this, let’s take a look at seven past and present favorites of the Reddit set, each of which should be one of the best meme stocks to buy right now.
American Superconductor (AMSC)
American Superconductor (NASDAQ:AMSC) is one of the meme stocks with substance. Shares in this producer of advanced grid systems may have been boosted too far, too fast, during a meme run in late July and early August.
However, following a slide from as much as $17.37 per share, back down to around $7.75 per share, AMSC stock could be on the verge of hitting prices that will make it a worthwhile long-term wager on greater demand for electricity in a post-carbon world.
In time, trends like mass adoption of electric vehicles, as well as decarbonization of electricity production, point to increased sales for American Superconductor’s products. Once the company scales up to the point of profitability, forget about AMSC merely re-hitting its recent meme high. Shares could surge to even loftier price levels.
Blackberry (NYSE:BB) is one of the original meme stocks that today is one of the best meme stocks.
During 2021, the meme community went bananas for the former mobile device maker (now a cybersecurity and internet of things technology company).
BB stock is back at pre-meme levels, and it is no longer one of the top meme stocks. However, since late last month, the company has been the subject of takeover rumors. Even if a deal doesn’t materialize, Blackberry has a few other catalysts on tap.
For instance, as InvestorPlace’s Larry Ramer recently pointed out, the company has inked a deal to provide software to be used in electric vehicles built by Foxconn’s EV consortium.
A new product launch just this week could serve as a growth catalyst as well. Meme mania may never return for BB shares, but the stock nonetheless could bounce back thanks to improving fundamentals.
Lithium Americas (LAC)
When one hears the phrase “meme stocks,” Lithium Americas (NYSE:LAC) isn’t likely a name that will first come to mind.
Yet while this lithium stock in the past has received boosts from “EV mania” more so than from “meme mania,” shares earlier this week did receive a pop, thanks to a sharp spike in speculation.
What’s driving this for LAC stock? News the company may have discovered the largest deposit of lithium in the world. Within the McDermitt Caldera (an ancient volcano), there may be 20 million to 40 million metric tons of lithium.
There are many caveats to this possible lode of lithium, including the economic feasibility of extracting it.
Still, this news underscores the enormous potential of LAC’s mining projects. Progress commercializing projects like Thacker Pass, coupled with continued rising demand for lithium, leaves the company well-positioned to swing to profitability within a few year’s time.
Sure, there has been less concern with this newest variant than with prior variants.
However, with nearly half the public concerned about it, and with the cold weather months approaching, this biotech firm could see a “boost” in Covid vaccine booster sales. Stronger-than-expected results could give MRNA stock (down massively from loftier price levels hit during 2021) a boost as well.
On a longer time frame, there’s also still the potential for Moderna to parlay its Covid-era success (not to mention its $8.5 billion war chest of cash) into the development of non-Covid mRNA vaccines.
These catalysts may not get MRNA back to its high-water mark (over $400 per share), but even a partial recovery would represent big gains compared to present price levels.
Cassava Sciences (SAVA)
Cassava Sciences (NASDAQ:SAVA) is another healthcare stock that has seen its popularity with retail traders come and go.
As you may recall, SAVA was once very popular with speculators, given the commercial potential with the key drug in its pipeline (Alzheimer’s treatment Simulfilam).
But then, allegations about data manipulation set in motion an extended SAVA stock selloff. Since August 2021, the stock has fallen from around $120 per share, to just under $20 per share today.
Yet while SAVA remains relatively out of favor, as well as heavily shorted (31.8% of float sold short, according to Fintel), this clinical stage biotech may still have what it takes to prove its skeptics wrong.
Cassava continues to release promising data regarding Simulfilam. There has also been a fair amount of insider buying lately. This could suggest high confidence that this drug will make it through the regulatory approval process.
Smith Micro Computer (SMCI)
“AI mania” has peaked, but Smith Micro Computer (NASDAQ: SMCI) remains one of the best meme stocks to buy.
The rapid adoption of generative AI has been a boon for this high performance server and storage solutions manufacturer.
With growth re-accelerating last quarter as a result, it’s no shock that SMCI stock has had an incredible run year-to-date.
Since January, shares are up by more than threefold. Even so, while the stock has plateaued more recently, and excitement for AI stocks is waning, Smith Micro Computer may have much more room to run from here on a longer time frame.
Thanks to a strong secular growth trend on its side, SMCI’s earnings could keep climbing. Sell-side forecasts call annual earnings per share to hit $21.41 by the fiscal year ending June 2025. This suggests you can buy stock for only 12.6 times earnings two years out.
SoFi Technologies (SOFI)
SoFi Technologies (NASDAQ:SOFI) is another past meme fave that remains one of the best meme stocks to buy.
It all has to do with the long-term growth prospects for this fintech/neobank. Lately, much of the focus with SoFi has been about its student loan refinancing business.
However, as Louis Navellier and the InvestorPlace Research Team have pointed out, what makes SOFI stock most appealing is its potential to blossom into a major financial institution, and not just in retail banking. SoFi’s big move into IPO underwriting this month could enable it to give old school Wall Street banks a run for their money as well.
SOFI has surged so far this year, doubling in price since January. The next big run may take some time, yet with shares pulling back in recent weeks, now may be an ideal time to start building a position.
On the date of publication, Thomas Niel 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.