If meme stocks had a punchline, it’s most likely to be “catch me if you can.” In the last few years, there have been dozens of instances where meme stocks have gone ballistic with multibagger returns in quick time. These days, Carvana (NYSE:CVNA) serves as a good example of the potential meme stocks hold.
I am, however, not discussing another Carvana-like story in this column. My focus is on three meme stocks that can surge by 50% to 100% in Q2 2024. My bullish view is not based on expectations of a purely speculative rally. Rather, I believe these meme stocks have key catalysts that can spark a big rally if triggered.
I must add that with potential rate cuts on the cards, it’s a good time to be invested in meme stocks. Easy money policies tend to increase speculative activity in the financial system. Meme stocks are likely to be beneficiaries.
Let’s discuss the reasons to be bullish on some of the best meme stocks to buy.
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT) stock is possibly among the most undervalued Bitcoin (BTC-USD) miners to buy. With strong fundamentals and aggressive expansion plans, Riot is positioned for stellar growth in the coming quarters. A big breakout on the upside seems impending. I would bet on 100% returns in Q2 2024.
Crypto experts predict that Bitcoin can potentially be worth $115,000 after the halving event. If that holds, RIOT stock is likely to go ballistic. I must add here that company-specific reasons add to the bullish thesis.
As of Q4 2023, Riot has a zero-debt balance sheet. Further, the cash buffer (including Bitcoin holdings) was worth $908 million. Therefore, financial flexibility is high to aggressively invest and capitalize on the crypto bull market.
From a hash rate capacity of 12.4EH/s at the end of 2023, Riot expects capacity to increase to 31.5EH/s and 40.8EH/s by 2024 and 2025, respectively. That will translate into stellar revenue and free cash flow growth. RIOT stock is likely to discount these positives relatively soon.
Archer Aviation (ACHR)
In the last month, EHang Holdings (NASDAQ:EH) stock has surged 67%. I am talking about EH stock, as it’s among the best flying car stocks. Archer Aviation (NYSE:ACHR) is also on the list of top eVTOL stocks but has remained sideways in the last six months. As commercialization nears, I am expecting a similar rally for ACHR stock.
Archer is currently in the last phase of the certification program by the Federal Aviation Authority. Commercialization in 2025 seems definite, and Archer expects to complete the construction of its eVTOL manufacturing facility in 2024.
Recently, the company announced a partnership with Falcon Aviation to develop a vertiport network in Dubai and Abu Dhabi. The target is to launch flying car operations next year. Therefore, Archer will be operating in the U.S. and UAE in 2025. Further, the company has plans to launch flying cars in India in 2026.
Therefore, the coming quarters and years will likely be exciting for the company in terms of growth. The rally could be sharp after the current phase of consolidation.
Cronos Group (CRON)
With elections due later this year, it’s a good idea to hold some of the undervalued cannabis stocks. Cronos Group (NASDAQ:CRON) has quietly trended higher by 31% year-to-date. The stock remains undervalued, and I would bet on a bigger rally in the foreseeable future.
An impending catalyst is the possible rescheduling of cannabis from Schedule I drug to Schedule III drug. If that happens in the coming months, CRON can surge by 50% to 100% from current levels. I am sure there will be ample discussions about federal-level legalization, keeping the excitement sky-high.
Fundamentally, Cronos is well-positioned to cash in on potential growth opportunities. The company has a strong cash buffer of $862 million that can be utilized for organic growth or acquisitions. Last year, the company made inroads into new markets in Germany and Australia focusing on medicinal cannabis. Revenue growth will likely accelerate this year. Therefore, with multiple positives, CRON stock is attractive.
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.
