Based on the latest headlines, figuring out which meme stocks to buy may be the last thing on your mind. Between a continued move to “risk-off,” due to economic uncertainties, along with tragic news related to high-profile meme stock Bed Bath & Beyond (NASDAQ:BBBY), meme mania continues to unravel.
However, while we aren’t likely to see a repeat of the 2021 frenzy anytime soon, that’s not to say that stocks in the meme category are a no-go right now (as long as you focus more on fundamentals and less on Reddit chatter). Top meme plays like AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME) continue to trade at valuations well above their underlying values.
As the speculative bubble that sent them “to the moon” continues to deflate, such names are at risk of further declines. Yet in the case of some of the secondary meme plays, following their big drops from their respective all-time highs, one can argue that investors can buy into them today, at a very favorable entry point.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
For instance, with these three meme stocks to buy. It may take some time, but thanks to company-specific factors, each one has a shot of making a comeback.
Blackberry (BB)
Source: Shutterstock
It may not have been an AMC or GameStop-tier “meme king,” but when this trend first emerged, Blackberry (NYSE:BB) was initially one of the more popular meme stocks to buy.
Whether due to name recognition, or its appeal as a short-squeeze target, traders bid it up BB stock in January 2021. Trading at single-digit prices before the frenzy, it zoomed to as much as $28.77 per share. Unfortunately, shares in the company, best known for its now-discontinued mobile devices, have given back all of its meme gains.
However, this works in your favor. Per InvestorPlace’s Larry Ramer, there’s big potential with its current main lines of business, like its QNX automotive software unit.
While a deal to sell non-core patents recently fell through, it could eventually monetize this portfolio. Even if meme mania fails to return, success with its underlying businesses may make it a moonshot worth considering.
Express Inc. (EXPR)
Source: Helen89 / Shutterstock.com
One of the micro-cap meme stocks, Reddit traders who got in early with Express (NYSE:EXPR) in January 2021 saw stunning gains in a matter of days. The initial meme wave resulted in it going parabolic, skyrocketing around 14x in a matter of weeks.
Flash forward to now. EXPR stock is again back near pre-meme prices and not only because this investing trend has been on the wane. Soaring inflation, alongside growing concerns about a severe recession, have the market very pessimistic about the apparel retailer’s future prospects.