- The best meme stocks are far and few between, but there are selective buys now.
- AMC Entertainment (AMC) remains a popular cult meme that’s breaking out.
- Tesla (TSLA) has been meme fodder courtesy of Elon Musk, and now TSLA stock is a buyable opportunity.
- Early pandemic standout Carvana (CVNA) is bottoming with significant short interest.
- TravelCenters of America (TA) low float and fundamentals add up to a pullback that can motor higher.
- Aterian (ATER) offers a hopeful bottom and alluring buzz-heavy cache meme traders hold dear.
- Former wunderkind Cathie Wood’s Ark Innovation ETF (ARKK) has come full circle for buyers.
- GameStop (GME) remains a popular champion among memes with potential for breakout to $250 per share.
Are we still talking about and trading meme stocks? Actually, it depends. Moreover, as we look to close out a gloomy month for the market, these are the best meme stocks which can produce sizzling profits for buyers.
It’s been a tough 2022 for traditional investors with bear markets making their presence felt in both the Nasdaq and S&P 500. And unsurprisingly, this past year’s more sketchy social media-driven meme stock movement sensationalized by Reddit’s r/Wallstreetbets over-the-top exploits have been largely quieted and severely punished.
Yet today and with seemingly the only interested party in meme stocks being the U.S. Securities and Exchange Commission as it attempts to curb future theatrical episodes like GameStop (NYSE:GME), here are seven of the market’s maligned, best meme stocks readying for comebacks and in position to buy.
|TA||TravelCenters of America||$33.79|
|ARKK||Ark Innovation ETF||$41.39|
Best Meme Stocks to Buy: AMC Entertainment (AMC)
AMC Entertainment (NYSE:AMC) is the first of our best meme stocks to purchase. Alongside other well-known meme stocks, shares of the theater chain operator with its meme-friendly CEO need little introduction.
AMC stock remains a consistent top ten most mentioned company on Reddit, although and as mentioned, today’s number of hashtag flinging, cute gifs, taunts, upvotes and the likes aren’t exactly what they used to be in 2021. But July looks to offer a promising revival for this turnaround play.
Shares of this best meme stock finished off about 6.5% in May after hitting new relative lows and have been under mostly modest pressure in June. But don’t be fooled.
On a positive technical note, the net price action sets up as a bullish inside hammer pattern that’s breaking through AMC’s year-long downtrend.
Overall, if shares are able to confirm the bottoming formation in July, shares may not put together a “to infinity and beyond” style reaction. But a sizzling and profitable rally that could send this best meme stock towards $20 looks worth the price of admission.
Tesla (NASDAQ:TSLA) is second on our list of best meme stocks to buy. The world’s largest electric vehicle (EV) manufacturer consistently ranks atop the most mentioned publicly-traded companies on Reddit. The firm also maintains an impressive 16.1 million followers on Twitter.
To be fair, Tesla’s business prowess might not conjure up images of a meme stock. Importantly, though, the company does have a history of being a contentious battleground stock and short interest remains significant with a dollar valuation approaching $21 billion.
As well, there’s little denying Tesla’s outspoken and brash CEO Elon Musk has made TSLA stock one of the market’s best meme stocks as he navigates a precarious buyout of Twitter (NYSE:TWTR). And now, the challenges surrounding that deal have helped with putting TSLA stock into an attractive and buyable position.
Technically, and entering July, this best meme stock is in position to finish June in a bullish hammer candlestick formed inside a larger high-level double bottom pattern roughly eight months in duration and which has found support off TSLA stock’s 50% retracement level tied to its March 2020 Covid-19 cycle. In other words, this is good news for current and potential investors of TSLA stock.
Carvana (NYSE:CVNA) is our next best meme stock to buy.
The online used car giant proved a sensation with Wall Street analysts during 2020 and into 2021. The firm also made investors a ton of money, as CVNA stock rallied from a Covid-19 low near $22 per share to more than $375 per share by last August.
More recently, though, a challenging shift in market conditions and management missteps have resulted in CVNA trading like a volatile meme, according to CNBC. But with those price swings also parlaying themselves into a year-to-date (YTD) decline of 90%, and bearish short interest of nearly 45%, July could see bulls taking shares for a profitable spin.
Technically, this best meme stock to buy is parked in a smallish, but still highly-combustible bullish hammer that’s stationed in a testing position of CVNA stock’s Covid-19 bottom.
With that in mind, the July trade-through to confirm the low should help with a bullish note from Bank of America last month, which maintained a “Buy” rating on shares and reset its 12-month price target on shares to $80 and premium in excess of 155%.
TravelCenters of America (TA)
Next on our list of the top meme stocks to buy is TravelCenters of America (NASDAQ:TA).
If you’ve done any summer road trips this summer, there’s a strong chance you’ve stopped or at least passed by this company’s travel centers, truck service facilities and restaurants within the U.S. and Canada. And while we might bemoan higher prices at the pump, business has been profitably strong for this meme stock.
Overall, with hefty year-over-year (YOY) revenues growing gain north of 50%, a smallish valuation of $530 million, a puny sales multiple of 0.06, consistent but modest Reddit chatter and fairly low float of 11.84 million shares, TA stock has the kind of fundamentals supporting its place as one of the market’s best meme stocks.
Now, with shares set to move past June’s market gloom in an oversold bullish hammer bottoming candle formed around TA stock’s 50% Covid-19-related retracement level, there’s plenty to suggest that buying shares will help fuel up investors’ portfolios in July.
Aterian (NASDAQ:ATER) is next up on our best meme stock to buy list.
ATER stock may very well be the riskiest of these meme selections in our estimation. But in a perverse sort of way, it works.
So, what is it about ATER stock that makes it a “best meme stock” right now?
For one, the e-commerce platform is descriptively littered with seductive buzzwords like machine learning, artificial intelligence (AI) and natural language processing. Meme traders, love that right?
Shares are also prone to being muscled easily for short periods given little Wall Street coverage. Additionally hurting the stock is a measly market cap of just $171 million, a $2.19 per share price tag, 14% short interest and low stock float of 30 million shares.
Also, despite all the headwinds, including negative cash flow and ongoing operating losses, ATER still maintains a pulse of life on R/WallStreetBets. More importantly, people are putting their money where their mouths are, as May saw a huge price spike on massive volume totaling more than 1 billion shares.
Currently, with shares having pulled back over the last two months, and monthly stochastics trending slowly higher in oversold territory, this best meme stock to buy could shape up smartly in July.
ARK Innovation ETF (ARKK)
ARK Innovation ETF (NYSEARCA:ARKK) is our next best meme stock to buy, and this one is an exchange-traded fund (ETF) — not a straight-up company. That aside, ARKK stock has all the characteristics of a solid meme play that’s ready to be purchased in July.
Headed up by the well-known Cathie Wood, Ark’s flagship actively-managed growth-centric ARKK stock has come full circle during the course of Covid-19 and much to the chagrin of bullish investors overstaying their welcome.
More importantly, sizable wagers in TSLA stock and more badly beaten names such as Roku (NASDAQ:ROKU), Zoom Video (NASDAQ:ZM), Block (NYSE:SQ) or DraftKings (NASDAQ:DKNG) make ARKK a diversified way to buy market leaders; Many of which have or remain cheap meme stocks.
Furthermore, not only does ARKK stock itself continue to garner its share of daily mentions on Reddit, but this stock has also formed a climatic bottoming pattern set inside the fund’s March 2020 low and making it a strong-looking buy entering July. Thus, investors looking for meme stocks to buy should not overlook this ETF.
Not that I’ve saved the best for last, but GameStop (NYSE:GME) is the last of our best meme stocks to buy.
The gaming turnaround play hasn’t proven immune to a significant tapering of interest from investors this year, but GME stock remains in a league of its own since first taking Wall Street by storm in January 2021.
Gone are the days of 19,000 plus mentions in a single session. But daily counts that routinely total in the hundreds and upvotes in the thousands mean that a discussion of best meme stocks wouldn’t be complete without GME stock.
Now, GameStop shares also happen to be set up for investors to buy in July. Despite posting a much wider-than-expected loss earlier this month and sporting a decent short interest of 23%, bears failed to capitalize on the situation. Interestingly, the defeat also occurred despite June’s broad-based decline to new relative lows.
Technically, and with GME stock now in its fifth week of lateral congestion, bullish investors should be prepared to buy this best meme stock on a breakout of GameStop’s combined trading range and one-year-long downtrend line in July in anticipation of a rally towards $200 to $250 in the second half of 2022.
On the date of publication, Chris Tyler is long Ark Genomic Revolution ETF (ARKG) (either directly or indirectly), but no other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.