雅虎香港財經 7 Best Reddit Stocks to Buy Now
Even though they’ve been maligned as a class, there are some Reddit stocks that boast incredible potential.
The Reddit community on Wall Street has been a great source of inspiration for investors leveraging the site’s popularity to make major investments.
The site is home to an investing community and traders with multiple subreddits dedicated exclusively to their needs. Many investors look to Reddit for investment advice due to its massive popularity. Though Redditors are notorious for pushing stocks that only have their relevance based on social media, Reddit stocks also have been known to perform.
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As you read through, you’ll find that these Reddit stocks are some of the most popular ones in the investing world. With more and more traders becoming savvy, high-quality names on the stock market are being bid up.
Therefore you are unlikely to see many obscure stocks trending on the social media platform. That said, here are seven of the best Reddit stocks that present themselves as attractive bets in the current market downturn.
DocuSign | $45.88 | |
Nio | $9.55 | |
Disney | $103.67 | |
Apple | $148.72 | |
TravelCenters of America | $52.20 | |
Gartner | $326.10 | |
C3.ai | $12.43 |
DocuSign (DOCU)
Source: Sundry Photography / Shutterstock.com
DocuSign (NASDAQ:DOCU) operates a leading e-signature platform that has grown its sales from just $500 million in 2018 to a massive $2.5 billion today. It has over 1.2 million customers and established a leadership position in its niche.
DocuSign was a pandemic darling and saw its shares skyrocket to new heights following multiple blow-out earnings reports. However, with the pandemic tailwinds fading away, company growth rates have normalized, which has investors concerned over its long-term outlook.
Given its customer base’s stickiness and humongous addressable market, I feel that DocuSign still has an incredible growth runway ahead.
According to a report from Straits Research, the e-signature market could grow from $4.4 billion last year to $42 billion by 2030. Moreover, with the firm’s cost-saving program in play and its impressive net retention rate of over 100%, I feel DocuSign will continue growing by double-digit margins making it one of the Reddit stocks to keep an eye on.
Nio (NIO)
Source: Michael Vi / Shutterstock.com
Growth stocks like Nio (NYSE:NIO) have fallen out of favor with investors over concerns about an economic slowdown in China and the government’s zero-Covid policy. The EV giant now trades at around three times forward sales, a highly attractive multiple given its long-term outlook.
Nio has been a revelation in the Chinese EV space producing thousands of vehicles each year, putting it firmly ahead of smaller EV markers and making it one of the more interesting Reddit stocks.
Deliveries have dropped in recent quarters due to supply-chain hiccups, but its recent results have been encouraging. Despite the headwinds, it delivered 29% more vehicles in its third quarter than last year.
Moreover, it delivered 10,059 vehicles last month, a 174% growth from the prior-year period. Therefore, there’s plenty to be optimistic about with NIO stock.
Disney (DIS)
Source: chrisdorney / Shutterstock
Disney (NYSE:DIS) has attracted plenty of attention from investors of late due to its streaming service, Disney+, which has been a smashing success since its launch.
It now has over 221 million subscribers, just behind Netflix with 223 million subscribers. Experts believe that subscriber growth for Disney+ is likely to outpace Netflix in the not-so-distant future.
Unlike Netflix, Disney has experiential businesses, such as its Parks and Cruise Line segments, which provide an incredible buffer.
After lengthy lockdowns, Disney reopened its global parks, with fans flocking back in droves. In its third quarter, the firm reported domestic hotel bookings hit an amazing 90% occupancy. Consequently, Disney has been growing at above-average rates while trading at just 2.3 times forward sales, making it a highly attractive bet.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is one of the most powerful tech companies that boast an unmatched ecosystem of sticky products and services that work to ensure better outcomes.
Its iPhone is one of the most popular gadgets in history, which continues to turn heads with new innovations.
Like other tech companies, Apple faces serious headwinds that have had a meaningful impact on its business. However, the firm had held up remarkably well under the circumstances and dished out another revenue and earnings beat in its most recent quarter.
Its CEO Tim Cook believes it’s heading into the holiday season “with our most powerful product lineup ever.”
The iPhone 14 will be the obvious growth catalyst moving forward. Daniel Ives, a top analyst at Wedbush, estimates that roughly 240 million iPhone users haven’t upgraded their phones in the past 3.5 years, pointing to amazing pent-up demand for the device.
TravelCenters of America (TA)
Source: IgorGolovniov / Shutterstock.com
TravelCenters of America (NASDAQ:TA) operates over 275 travel centers in the U.S. near major airports and highways.
Additionally, it also owns multiple big-box retail stores in various cities across the U.S. Its top- and bottom-line performances took a big hit during the pandemic due to a substantial drop in airport revenues. However, the business is back with considerable aplomb, with the rapid increase in travel demand.
It’s growing sales by over 50% this year, driven by post-pandemic tailwinds for its business. It recently wrapped up its third quarter, delivering $2.8 billion in revenues, a 44.8% improvement from the prior year.
Gartner (IT)
Source: T. Schneider / Shutterstock.com
Gartner (NYSE:IT) is an industry leader in market research and analytics for the tech sector. Its expertise covers many areas, including cloud computing, enterprise applications, and other profitable areas.
The company has been highly effective in adapting to evolving market conditions while delivering incredible insights for its clients. Also, it benefits from accelerating digital transformation, with firms adopting new technologies.
Its stellar performances over the years have given investors confidence that it will deliver great results for the foreseeable future.
Despite the market headwinds, it continues to report strong results and guidance. Its top line has been growing by double-digit margins in the past few quarters, and it remains a tremendous choice for investors eyeing a high-potential investment opportunity. Contrary to what most investors think, IT stock trades at a discount compared to peers while growing sales at a faster pace.
C3.ai (AI)
Source: Khakimullin Aleksandr / Shutterstock
C3.ai (NYSE:AI) is another growth stock that has witnessed a massive drop in value over the past several months.
Its growth rates have decelerated in the past few quarters, with the pandemic fade.
Over the long term, its business is looking at a massive addressable market and should continue to grow at a healthy pace for the foreseeable future. It’s still growing at over 30% annually, which is incredible given the current economic scenario.
The company recently shifted its business model to a subscription model, which gives it a chance to earn higher revenues and margins. Its algorithms have proven to cut costs and optimize the firm’s operations effectively.
The firm is scaling its customer base and is now over 220 customers compared to just 50 at its IPO. Moreover, with the stock trading at historical lows, AI stock remains a tremendous bet at current levels.
On the date of publication, Muslim 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
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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