If the Covid-19 pandemic taught us anything, it’s that investors should never underestimate the power of coordinated trading action via social media, which brings up the topic of super speculative meme stocks. Obviously, this subsegment is highly volatile and should only be approached with money you can afford to lose.
Then again, these market ideas might save you a trip to Las Vegas if all you’re seeking is the rush of rolling the dice. For the hardened gambler, these are the speculative meme stocks that very well could make you rich.
A cloud computing-based data cloud enterprise, Montana-based Snowflake (NYSE:SNOW) primarily offers data storage and analytics services. Generally termed as Data as a Service (DaaS), Snowflake allows corporate users to store and analyze data using cloud-based hardware and software. Since the beginning of the year, SNOW gained over 8% of equity value. However, in the trailing year, it’s down 31%.
Of course, when talking about speculative meme stocks, sometimes printing red ink could be viewed as a positive. If anything, it allows fans to buy SNOW on the dip. Better yet, Snowflake provides some intriguing fiscal stats. For example, its cash-to-debt ratio pings at 15.93 times. In contrast, the sector median value sits at only 2.81 times.
Another factor to consider is that for now, Snowflake represents a massive growth machine. Its three-year revenue growth rate stands at 80%, outpacing over 96% of sector players. Finally, Wall Street analysts peg SNOW as a consensus strong buy. Their average price target comes in at $184, implying nearly 26% upside potential.
An American chemical company, Chemours (NYSE:CC) seems an odd choice for speculative meme stocks. However, I’ve learned to not question it and just report developments as they stand. Since the Jan. opener, CC declined by 6%. In the trailing one-year period, it gave up 10% of equity value. Notably, Chemours carries a forward yield of 3.48%, confirming that meme-traders don’t just target capital gains exclusively.
Financially, the company offers several attractive attributes. Mainly, it prints a three-year EBITDA growth rate of 46.6%, outpacing 90.5% of companies in the chemicals industry. Also, its free cash flow (FCF) growth rate during the same period pings at 40.2%, above 83.18% of the field.
Enticingly, the market prices CC at a forward multiple of 7.31. As a discount to projected earnings, Chemours ranks better than 89.24% of the competition. Lastly, covering analysts peg CC as a consensus moderate buy. Their average price target stands at $38.91, implying over 35% upside potential.
A fan favorite among speculative meme stocks, Finnish multinational telecommunications firm Nokia (NYSE:NOK) actually performed decently well this year. Since the Jan. opener, NOK gained over 4% of equity value. In the trailing year, it’s down a bit more than 9%. While not pleasant by any means, NOK hasn’t suffered the devastating losses incurred by similarly risky enterprises.
Financially as well, I must say that Nokia cuts a relatively solid figure. Notably, its three-year EBITDA growth rate pings at 18.7%, outpacing 63.2% of the competition. Also, its book growth rate during the same period is 11.8%, above 68.82% of sector peers.
Perhaps most attractive to participants of speculative meme stocks, the market prices NOK at a forward multiple of 10.52. As a discount to projected earnings, Nokia ranks better than 78.66% of the field. In closing, analysts peg NOK as a consensus strong buy. Their average price target is $7.05, implying nearly 44% upside potential.
A popular financial technology (fintech) platform and business management ecosystem, PayPal (NASDAQ:PYPL) offers significant relevancies. One area that should be particularly compelling is the gig economy. As workers question traditional mechanisms of earning income in the post-pandemic environment, PayPal might rise to greater levels of prominence. If so, PYPL would symbolize one of the top speculative meme stocks to consider.
Not only that, the company’s financials largely offer an enticing picture. For starters, its cash-to-debt ratio comes in at 1.04 times. In contrast, the sector median value is only 0.28 times. Further, its debt-to-equity ratio sits favorably below 65.49% of companies listed in the credit services sector.
Operationally, PayPal’s three-year revenue growth rate pings at 16.7%, above 76.49% of its rivals. Also, its FCF growth rate during the same period is 15.9%, beating out nearly 63% of competing enterprises. Turning to Wall Street, analysts peg PYPL as a consensus moderate buy. Their average price target stands at $113.45, implying over 54% upside potential.
Based in San Francisco, California, LiveRamp (NYSE:RAMP) bills itself as a data collaboration platform of choice for the world’s most innovative companies. According to LiveRamp’s website, the underlying practice allows companies to build enduring brands and business value. Still, RAMP is volatile. Since the Jan. opener, it dipped 4%. In the trailing one-year period, it fell nearly 41%.
Still, astute contrarians should find RAMP attractive as one of the speculative meme stocks. Primarily, the underlying company benefits from fiscal stability. Particularly, its cash-to-debt ratio pings at 9.3 times, ranked better than 64.18% of its peers. Also, its Altman Z-Score is 5.74, indicating low risk of imminent bankruptcy.
Operationally, LiveRamp’s three-year revenue growth rate comes in at 26.7%, beating out 82.15% of sector rivals. Also, its EBITDA growth rate during the same period printed a very healthy 32.8%. Looking to the Street, analysts peg RAMP as a unanimous strong buy. Their average price target stands at $35, implying over 54% upside potential.
Moving toward the extremely risky side of speculative meme stocks to consider, Beachbody (NYSE:BODY) is a fitness and media company. Per its public profile, it operates the brands Beachbody On Demand, Team Beachbody, MYXfitness and Openfit. As well, the enterprise sells dietary supplements through direct response infomercials and multi-level marketing programs.
So far, BODY seems too risky for conservative investors to consider. Sure, it’s only down about 7% since the Jan. opener. However, in the past 365 days, BODY tanked over 74%. Further, its financial don’t provide much encouragement. Glaringly, its three-year revenue growth rate sits at 3.2% below parity. Also, its profit margins have sunk well below zero.
On the positive side, I suppose you can say that BODY trades for 1.98-times tangible book value. For this metric, Beachbody ranks better than 63.87% of its peers. Finally, analysts peg BODY as a consensus hold. However, their average price target is $1.02, implying 106% upside potential.
Planet Labs (PL)
An Earth imaging company, the San Francisco-based Planet Labs (NYSE:PL) focuses on capturing the entirety of the Earth daily to monitor changes and pinpoint trends. One of the more immediately practical enterprises within the burgeoning space economy, PL could be intriguing for those seeking speculative meme stocks that may have longstanding relevance.
Still, prospective investors must gird themselves for a bumpy ride. Since the Jan. opener, PL fell nearly 19%. And in the trailing one-year period, it gave up almost 34% of equity value. The red ink isn’t without justification. Notably, both the company’s long-term revenue trend and trailing-year net margin sit in negative territory.
On the plus side, Planet Labs enjoys a decently stable balance sheet. Its cash-to-debt ratio hits 18.56 times, better than 84.45% of the competition. Lastly, analysts peg PL as a consensus strong buy. Their average price target stands at $8.33, implying nearly 128% upside potential.
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.