7 Undervalued Reddit Stocks to Buy Before Wall Street Catches On

Stocks to buy

Reddit stocks have been so successful (or at least intriguing) that Reddit has quickly become an investing hub.

The site has a huge community of investors and traders who use it as a platform for their investments. The trading community is also big on Reddit, and many subreddits are dedicated to trading.

Investors are increasingly looking towards Reddit stocks as a reputable source of investment advice because of the new trend.

When choosing Reddit stocks to invest in, there are a few things you have to take into consideration. The first is the company’s financial stability. This can be determined by looking at its balance sheet, income statement and cash flow statement. You should also consider how much money has been coming in recently and what its debt level is like.

Another thing to look out for with Reddit stocks is management quality. This can be determined by their track record of past successes or failures, how they handle crises, and whether they have a history of being honest with shareholders.

AAPL Apple $136.72
IT Gartner $241.83
HOOD Robinhood $8.22
WBD Warner Bros. Discovery $13.42
ME 23andMe $2.48
TLRY Tilray $3.12
TA TravelCenters of America $34.47

Apple (AAPL)

Source: Bloomicon / Shutterstock.com

YTD Performance: -24.88%

Apple (NASDAQ:AAPL) has always been a leader in innovation. It was the first company to introduce a personal computer, the iPod, and the iPhone. The company has also introduced other products like the Apple Watch and Apple TV.

The company is known for its focus on design, simplicity, and ease of use. They have also created a loyal customer base with its brand value of “Think Different.”

Apple is also known for its ecosystem of products that work seamlessly together to make our lives easier.

The company’s first-quarter results highlight its performance and financial strength. It has a strong customer base and an innovative product line that is well received by its target market. It also has a well-developed infrastructure, with experienced members of the management team in place.

Gartner (IT)

Source: Undrey / Shutterstock.com

YTD Performance: -24.89%

Gartner (NYSE:IT) is a research and advisory firm. It provides insights into the global IT market.

Gartner is one of the global IT industry’s leading providers of information technology research, advisory services and events.

Gartner helps organizations in various industries understand what is happening in the marketplace and how to make better decisions about their future IT investments.

It has made a name for itself in its ability to seemingly predict future technological trends and their potential effects on the business world. Due to an asset-light approach, the research company has done very well for itself. It reported over $4.73 billion in revenue in 2021, a 15.48% increase from the year-ago figure.

Now more than ever, businesses and investors need insights. Gartner can help in this regard and make an excellent return on the way, making it one of the Reddit stocks worth keeping an eye on.

Robinhood (HOOD)

Source: dennizn / Shutterstock.com

YTD Performance: -55.42%

Robinhood (NASDAQ:HOOD) is a trading platform that is designed for the next generation. The company’s mission is to democratize access to America’s financial system.

The app has grown rapidly and now has over four million users who invest in stocks and other investments through the app. Robinhood offers commission-free trades on stocks, ETFs, options and cryptocurrency trading.

The application was behind the Reddit revolution, which is why it’s among the more popular Reddit stocks. Investors active on subreddits got together and used the app to enter into short squeezes.

Stock trading use is declining as people return to their normal lives. Plus, with stimulus money maxing out and inflation on the rise, it’s not very easy for retail investors to trade stocks. These are important factors to keep in mind when investing in this one.

Warner Bros. Discovery (WBD)

Source: Ingus Kruklitis / Shutterstock.com

YTD Performance: -47.37%

In April, AT&T’s (NYSE:T) WarnerMedia and Discovery just announced that completed a merger, forming a new company — Warner Bros. Discovery (NASDAQ:WBD). The new media company is one of the leading players in the industry.

However, since the merger closed, the stock has not done too well. You can chalk that up to the issues surrounding Netflix (NASDAQ:NFLX).

The streaming giant lost 200,000 subscribers in Q1. To put into perspective how bad the number was, Netflix had a target of adding 2.5 million subscribers this quarter. It also did not help the streaming giant suspended operations in Russia, costing it 700,000 paid subscribers.

All of these developments weighed down heavily on WBD stock. However, shares are very attractive at the current price multiples, especially considering WBD’s extensive content library, with 200,000 content hours.

23andMe (ME)

Source: nevodka / Shutterstock.com

YTD Performance: -65.17%

23andMe (NASDAQ:ME) is a company that provides genetic testing kits.

It offers personal DNA tests for health-related purposes, such as detecting genetic predisposition to certain diseases or determining biological relationships. The company also offers genetic testing kits for research purposes, including population and medical research studies.

23andMe is an interesting company because there are multiple use cases. The company can make personalized genetic sequencing more accessible, allowing consumers to explore health risks and benefits.

It also has a business side that offers research services for pharmaceutical companies for a fee. 23andMe’s business model interprets customers’ genetic data and provides insights into physical traits, ancestral origins, inherited traits, and health-related traits.

The market cap for 23andMe is valued at $1.19 billion, but it may take some time before the company can grow into its valuation. Its revenues for last year were $272 million, an 11% increase in the fiscal year.

Although a respectable number, it needs more top-line growth to remain one of the more interesting Reddit stocks.

Tilray (TLRY)

Source: Jarretera / Shutterstock.com

YTD Performance: -57.78%

Tilray (NASDAQ:TLRY) has grown to be the largest cannabis company in Canada and is the world’s most valuable marijuana company.

It produces and supplies medical cannabis products and services to patients, physicians, pharmacies, governments, hospitals, and researchers worldwide. Tilray is also the largest cannabis company in Canada and the world after its merger with Aphria.

It was one of the biggest arbitrage opportunities in recent memory. However, the cannabis company has done well since the merger closed.

Tilray’s adjusted EBITDA came in at $10 million for Q3, which is around 24% lower after its cannabis sales plummeted to $55 million. The company has reported 12 consecutive quarters of profitable adjusted EBITDA, the top measure of profitability in the industry.

TravelCenters of America (TA)

Source: IgorGolovniov / Shutterstock.com

YTD Performance: -33.76%

TravelCenters of America (NASDAQ:TA), or TA, is a company that provides travel-related services.

It has a network of more than 275 travel centers near major highways, airports, and cities across the country. TravelCenters of America also owns and operates big-box retail stores that offer truck accessories, RV supplies, tires, batteries, generators, and other items for travelers.

The company operates in three segments: convenience stores (primarily under the TravelCenters of America brand), travel center operations (primarily under the TA brand), and truck stop operations (primarily under the Petro Stopping Centers brand).

TravelCenters of America was particularly hard hit during the pandemic — its airport revenue decreased sharply because people weren’t flying.

However, things are back on track now. Its latest quarterly results show $2.3 billion in revenue, up 50.22% from the year-ago period. Net income, meanwhile, jumped 380.19% as passengers returned. TSA checkpoint travel numbers also point to a resurgence in travel. Therefore, among Reddit stocks, TA is a great comeback story.

On the publication date, Faizan Farooque 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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

Articles You May Like

Cannabis Stocks Are Gaining, but We’re Still Bearish
Housing Market Slowdown Does Not Bode Well for RDFN Stock
Stocks making the biggest moves after hours: Lululemon, Costco and more
Technical Analysis vs Fundamental Analysis – Which is Better?
7 Iron-Clad Stocks That Will Resist the Market Turmoil