In arguably most cases, it’s easier to sell the narrative that beaten-down enterprises represent stocks to buy over the long run than it is to state that high-flying entities could jump even higher. Maybe it has to do with humans’ natural proclivity to seek out discounts. Or it could have to do with recent biases, with sectors such as meme stocks suffering huge declines from their peaks.

Whatever it is, the idea of buying securities that have already gained so much – in this case 50% since the start of the year – is a difficult one to advertise. Nevertheless, prospective participants should consider the broader fundamentals before making their decision. Yes, they might be arriving later in the game. However, that doesn’t necessarily mean that they’re absolutely late.

Look, if you had acquired cryptocurrencies at the peak in 2021, you might have felt that you lost out in the subsequent drought. However, with the sector rebounding sharply this year, the framework suddenly shifted. It’s possible the same could apply with these hot stocks to buy.

AeroVironment (AVAV)

Based in Arlington, Virginia, AeroVironment (NASDAQ:AVAV) technically falls under the industrials space. As you might expect from its brand name, it specializes in aerospace and defense. Its acumen zeroes in on robotic systems and related services. Fundamentally, AVAV stock received a massive shot in the arm for its unmanned aerial vehicles and its self-destructing drones.

The latter has become a key fixture in Ukraine’s defense against invading Russian forces. While AeroVironment can suffer bouts of volatility, it generally performs incredibly well. Since the beginning of this year, AVAV stock returned over 74% for stakeholders. However, it also begs the question of whether or not there’s upside remaining.

Analysts rate shares a consensus moderate buy. However, with an average price target of $207.50, that implies almost 4% downside risk. Still, my argument would be that until Russian President Vladimir Putin gives up, AeroVironment will remain relevant. Putin refuses to concede so more upside may be expected.

For fiscal 2024, covering experts anticipate sales to land at $708.15 million. That would be up 31% from last year’s haul of $540.54 million. I think AVAV’s one of the stocks to buy.

Robinhood (HOOD)

So, if you want to know what my take on financial technology (fintech) giant Robinhood (NASDAQ:HOOD) is, I’ll get straight to the point. Around the middle of last month, I wrote two articles covering HOOD stock, almost back-to-back. First, I discussed the fundamental case for the enterprise and later, I made the bullish trading case.

Obviously, I’m glad I pounded the table on HOOD stock because it has simply performed outstandingly. Since the beginning of the year, shares returned over 88%. In the past 52 weeks, stakeholders are up over 134%. Of course, with such a robust performance under the belt, it raises the inquiry: can HOOD continue its remarkable run or is it time to bail out?

I believe that it’s still one of the stocks to buy. In particular, the latest meme-trading frenzy only confirms that retail investors are interested in the capital markets. If there’s any silver lining from the COVID-19 crisis, it’s that: young people who had no care for Wall Street are investing in their future.

For fiscal 2024, analysts see Robinhood sales hitting $2.42 billion, up 29.8% from last year’s tally of $1.86 billion. It’s one of the stocks to buy.

Sea (SE)

When looking at the technical chart, I can understand the hesitation surrounding international fintech player Sea (NYSE:SE). A tech conglomerate headquartered in Singapore, Sea covers three main areas: digital entertainment, e-commerce and digital financial services. On paper, the enterprise looks relevant because it is relevant. Since the start of the year, SE stock almost doubled, gaining nearly 94% of equity value.

So, what’s the problem? In the past 52 weeks, SE gained just over 17%. Zooming out the chart, ZE soared to triple-digit prices before plunging in November of 2021. Naturally, the severe cratering of the tech giant has left a bad taste in investors’ mouths. Yes, Sea enjoys a consensus strong buy rating. However, the average price target comes in at $80.63, implying just over 8% upside potential. That’s nothing.

Still, over the long run, it could rank among the stocks to buy. Primarily, prospective speculators should look to the Southeast Asia internet economy. By 2030, the ecosystem could be worth $1 trillion.

Covering experts believe that in fiscal 2024, sales may hit $15.4 billion. If so, that’s up 17.9% from last year. It’s at least worth looking into.

On the date of publication, Josh Enomoto did not have (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.