3 Meme Stocks Poised for a Viral Comeback in 2024

Stocks to buy

Forget the stiff suits on Wall Street; the real market movers in 2024 might be armed with rocket emojis and diamond hands, which is why we need to discuss comeback meme stocks to buy.

Sure, I understand the hesitation and to be perfectly blunt, banking on retail consumer sentiment – especially that driven by social media – represents risky business. Further, in early 2022, The Wall Street Journal reported on market turmoil (at the time) devastating meme stocks to buy.

If that wasn’t bad enough, the WSJ also stated that Robinhood (NASDAQ:HOOD) saw its monthly active users (MAUs) being roughly halved from pandemic-era highs. Obviously, that’s not a great look for comeback meme stocks.

However, not all trades from this social-media-driven directive are irrational. Some are quite sensible, so long as you’re willing to risk the volatility inherent in contrarian opportunities. If you’re willing to set aside your preconceptions, below are some compelling ideas from the meme stock tracker.

Kroger (KR)

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What it is: A grocery store giant, Kroger (NYSE:KR) doesn’t natively come across as one of the comeback meme stocks to buy. Indeed, I’d argue that it’s a sensible idea given the core pertinence of the underlying business. Still, meme traders love KR and thus, it’s one of the names to watch.

Relevance: Kroger’s relevance speaks for itself. No matter what goes on with the economy, people need to eat. In terms of hard data, Grand View Research pointes out that the global food and grocery retail market reached a valuation of $11.32 trillion in 2021. Further, experts project a modest compound annual growth rate (CAGR) of 3% from 2022 to 2030. That’s not exciting but here’s the thing: the grocery business is predictable.

Pros: Financially, KR seems a compelling idea because of its valuation. Priced at only 10.37x forward earnings, Kroger ranks favorably below 87.5% of sector peers. Also, analysts rate shares a moderate buy with a $51 price target, projecting 13% upside.

Cons: Shares dipped about 2% in the trailing 52 weeks, which is disappointing considering the underlying relevance.

United Parcel Service (UPS)

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What it is: A multinational shipping and receiving firm, United Parcel Service (NYSE:UPS) also specializes in supply chain management. Delivering packages throughout the globe, UPS is natively relevant. However, competitive threats – particularly from Amazon (NASDAQ:AMZN) – have made shares a tough investment.

Relevance: In terms of relevance, UPS is a headscratcher for many. According to Allied Market Research, the global express delivery market size reached a valuation of $262.86 billion in 2020. Further, by 2030, this segment could hit $484.38 billion, thus representing a CAGR of 6.4%. But here’s the thing. With Amazon continuing to apply pressure on UPS and its ilk, the future is uncertain. Still, speculators have pushed shares higher in recent sessions.

Pros: Financially, UPS prints a three-year EBITDA growth rate of 29%, beating out nearly 75% of its peers. Also, it’s consistently profitable, possibly making it one of the comeback meme stocks. Analysts also rate shares a moderate buy with a high-side target of $202.

Cons: The average analyst target sits at $167.65, implying about 6% upside, which is not very convincing.

Alibaba (BABA)

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What it is: A Chinese multinational technology firm, Alibaba (NYSE:BABA) specializes in e-commerce, retail and internet solutions among other businesses. While it may be the flagship enterprise of China, the company suffered heavy losses from its 2020 peak. But for those that see the glass half empty, it could be an opportunity for comeback meme stocks.

Relevance: According to data from Statista, China’s retail e-commerce sales value amounted to around $2.68 trillion last year. That right there suggests BABA may be a heavily de-risked opportunity, despite the troubles clouding the world’s second-largest economy. Further, this segment may approach $4 trillion by 2027. Therefore, patient investors willing to ride out volatility could be rewarded handsomely down the line.

Pros: While BABA took a beating in the market, Alibaba itself remains financially robust. For example, the company prints a strong cash-to-debt ratio of 3.45x. It also benefits from excellent operating and net margins, leading to consistent profitability. Analysts rate shares a strong buy with a $125.92 price target, projecting over 67% growth.

Cons: If China’s consumer economy is worse than projected, be ready for extreme volatility.

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.

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