Even with a relatively small allocation, meme stocks can be game-changers for portfolio returns. Multibagger returns within a few quarters are not uncommon in the world of meme stocks. This column focuses on meme stocks to buy in April for returns in the range of 50% to 100% before the end of 2024.

There were two primary catalysts for the meme stocks discussed. First, these stocks represent ideas with industry or company-specific tailwinds that will drive growth and value creation.

Further, the season for meme stocks is coming with the possibility of multiple rate cuts in the next 12 to 18 months. Expansionary monetary policies translate into easy money and speculation increases across asset classes. Penny and meme stocks will likely be hot commodities in the coming quarters.

Therefore, let’s talk about three meme stocks that are likely to skyrocket.

Marathon Digital (MARA)

With Bitcoin (BTC-USD) halving due in April, Marathon Digital (NASDAQ:MARA) is among the meme stocks to buy. The Bitcoin miner has been subdued for the year to date. Expect a strong breakout on the upside on the back of two catalysts.

First, Bitcoin will surge higher after the halving event. Additionally, with potential rate cuts coming in the year’s second half, the crypto outlook remains bullish.

Further, Marathon has pursued aggressive hash rate capacity expansion. This will likely translate into stellar revenue growth and cash flows in the coming quarters.

To put things into perspective, the company ended 2023 with an installed hash rate of 25.2EH/s. On a year-on-year basis, capacity has swelled by 260%. Marathon is further expecting to achieve capacity of 50EH/s by the end of 2025.

Given the plans, financial flexibility and outlook for Bitcoin, conservatively expect MARA stock to double before the end of the year.

Nio (NIO)

Nio (NYSE:NIO) stock has plunged 50% year-to-date. The correction has been based on operating level losses, sluggish vehicle delivery growth and equity dilution. At $4.5, NIO stock seems deeply undervalued. While I would still avoid long term exposure, the stock is a good trading bet.

It’s worth noting that for 2023, Nio reported a vehicle margin of 9.5%, which was lower by 420 basis points on a year-on-year basis. Further, the operating loss for the year was $3.2 billion. Amidst these negatives, Nio has received $2.2 billion of strategic equity investment from CYVN Investments RSC.

In the current year, Nio is focused on cost-cutting, which will likely translate into narrowing operating losses. Additionally, the company has launched existing models with enhanced configuration and performance. ES7, ET7 and ET5’s commercial launch is due in Q2 2024. Therefore, there are hopes for deliveries growth acceleration. Positive news in the coming quarters can translate into a sharp reversal rally.

Cronos Group (CRON)

After an extended period of price and time correction, Cronos Group (NASDAQ:CRON) stock has surged by 45% in the last month. CRON stock, however, remains massively undervalued at a market valuation of $1 billion. To put things into perspective, the company has a cash buffer of $862 million and expects net change in cash to be positive for the year.

Besides the undervaluation, a key reason for the rally is that 2024 is an election year. There is likely to be news on the potential federal-level legalization of cannabis. The U.S. Food and Drug Administration has already recommended to the Drug Enforcement Agency to classify cannabis as a Schedule III substance.

Elsewhere, Germany has legalized cannabis, and other European countries will likely follow suit. As regulatory headwinds gradually wane, there are reasons to be optimistic about the medicinal and recreational cannabis business. With a strong cash buffer, Cronos is positioned for aggressive growth and potential acquisitions.

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.