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【XM Decision Analysis】--The Best Meme Stocks to Buy Now
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The purpose of information release is to warn investors of risks and does not constitute any investment advice. The relevant data and information are from third parties and are for reference only. Investors are requested to verify before use and assume all risks.
Hello everyone, today XM Forex will bring you "【XM Decision Analysis】--The Best Meme Stocks to Buy Now". I hope it will be helpful to you! The original content is as follows:
A meme stock refers to a publicly listed xmyoume.company that is trending among retail traders on social media. Reddit and Telegram channels are among the favorite social media platforms for retail traders to engage in social trading, in-depth discussions, and short-term price speculation.
Trading in meme stocks is like a pump-and-dump scheme, which is illegal, but so far, regulators have tolerated the meme craze. Retail investors band together and agree to buy a beaten-down stock, often a well-known penny stock with high short interest from institutional traders. This has created massive market volatility and, in some cases, sparked a short squeeze.
Why Should You Consider Buying Meme Stocks?
Meme stocks trade at depressed levels for a reason, and traders must understand why their share prices are where they are.
Here are some criteria to consider:
- A well-known xmyoume.company that played a role in the life of traders, especially growing up (for example, Krispy Kreme, Avis, and GameStop).
- A high interest by retail traders on social media.
- Follow popular social media channels and try to catch the first wave of buy orders.
- Ensure you place a stop-loss order when you enter a buy order.
- Only use capital that you can afford to lose.
What Are the Downsides of Meme Stocks?
Meme stocks are high-risk, short-term gambles, and many institutional traders heavily short them. Traders can lose their capital in a matter of seconds if they enter at the wrong time. Meme stocks experience excessive volatility, characterized by sharp rallies and even sharper selloffs. They often suffer from depressed share prices and are mostly penny stocks trading below $5 per share.
Here is a shortlist of currently attractive meme stocks:
- Krispy Kreme (DNUT)
- Kohl’s (KSS)
- Rivian Automotive (RIVN)
- GameStop (GME)
- CoreWeave (CRWV)
- Super Micro xmyoume.computer (SMCI)
- SoFi Technologies (SOFI)
- BlackBerry (BB)
- AMC Entertainment (AMC)
- Enovix Corporation (ENVX)
Update On My Previous Best Meme Stocks to Buy Now
In our previous installment, I highlighted the upside potential of Krispy Kreme and Kohl’s.
Krispy Kreme (DNUT) - A long position in KSS between $3.61 and $4.70.
DNUT settled into a trading range between $2.90 and $3.95, and I continue to hold Krispy Kreme.
Kohl’s (KSS) - A long position in KSS between $12.52 and $14.06.
KSS touched a low of $10.33 before rallying to $18.25. I closed it for a gain of 34%, but it is on my watchlist again after breaking down into my previous buy zone.
Rivian Automotive Fundamental Analysis
Rivian Automotive (RIVN) is an electric vehicle manufacturer and automotive technology xmyoume.company. It manufactures the R1T pickup truck and the Rivian EDV. It is also a member of the Russell 1000.
So, why am I bullish on Rivian Automotive following its sell-off?
While Rivian Automotive, the manufacturer of Amazon delivery trucks, faces challenges, it reported positive operating cash flow over the past twelve months. I also appreciate its logistics optimization and plans to expand its product line. The recent sell-off, which I believe is overdone, took its share price into solid support levels.
Metric
Value
Verdict
P/E Ratio
Unavailable
Bearish
P/B Ratio
2.71
Bearish
PEG Ratio
Unavailable
Bearish
Current Ratio
3.44
Bullish
Return on Assets
-22.48%
Bearish
Return on Equity
-57.78%
Bearish
Profit Margin
Unavailable
Bearish
ROIC-WACC Ratio
Unavailable
Bearish
Dividend Yield
0.00%
Bearish
Rivian Automotive Fundamental Analysis Snapshot
The RIVN price-to-earnings (P/E) ratio is unavailable.
The average analyst price target for Rivian Automotive is $14.30. It suggests moderate upside, but this meme stock has a history of price spikes exceeding this level.
Rivian Automotive Technical Analysis
Rivian Automotive Price Chart
- The RIVN D1 chart shows price action between its descending 50.0% and 61.8% Fibonacci Retracement Fan levels.
- It also shows Rivian Automotive at the upper band of its horizontal support zone.
- The Bull Bear Power Indicator is bearish with a positive pergence.
My Call on Rivian Automotive
I am taking a long position in Rivian Automotive between $12.65 and $13.20. The current ratio is healthy, alleviating medium-term balance sheet issues. RIVN is taking steps to improve operations and has generated positive cash flows from operations.
GameStop Fundamental Analysis
GameStop retails video games, consumer electronics, and gaming merchandise. GME is the largest video game retailer worldwide, and operates over 3,203 stores in the US, Australia, and Europe. GameStop began to purchase Bitcoin with its cash reserves this year. It is also a member of the S&P 400 Index.
So, why am I bullish on GME despite its breakdown sequence?
The recent plunge in its share price was due to the issuance of warrants, which may lead to shareholder dilution, but GME became an active buyer of Bitcoin and may use the expected $1.9 billion to boost its Bitcoin holdings. The launch of a new meme ETF, with the ticker MEME, should provide ample upside pressure. Profit margins are excellent, and the current ratio is superb.
Metric
Value
Verdict
P/E Ratio
29.12
Bullish
P/B Ratio
2.35
Bullish
PEG Ratio
2.21
Bullish
Current Ratio
11.37
Bullish
Return on Assets
3.50%
Bullish
Return on Equity
7.00%
Bullish
Profit Margin
9.41%
Bullish
ROIC-WACC Ratio
Negative
Bearish
Dividend Yield
0.00%
Bearish
GameStop Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio of 29.12 makes GME a reasonably valued stock, especially for meme play. By xmyoume.comparison, the P/E ratio for the S&P 500 is 30.17.
The average analyst price target for GameStop is $26.00. This suggests muted upside potential, but downside risks are equally limited.
GameStop Technical Analysis
GameStop Price Chart
- The GME D1 chart shows price action just below its ascending Fibonacci Retracement Fan.
- It also shows GameStop entering a solid horizontal support zone.
- The Bull Bear Power Indicator is bearish but remains within its ascending support level.
My Call on GameStop H2
I am taking a long position in GME between $21.54 and $24.20. GameStop has one of the highest current ratios in the S&P 400 Index, and I expect the new meme ETF to generate upside pressure. The GME Bitcoin fund is a downside buffer and could attract more meme and crypto enthusiasts.
Please remember the high-risk nature of trading meme stocks. They are highly volatile, face balance sheet and operational issues, and can wipe out portfolios in a few seconds. Some meme stocks can swing 50% to 100% in short periods.
The above content is all about "【XM Decision Analysis】--The Best Meme Stocks to Buy Now", which is carefully xmyoume.compiled and edited by XM Forex editor. I hope it will be helpful for your trading! Thank you for your support!
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