Forget GameStop, Buy These 3 Meme Actions Instead
Popularity on social media platforms like Reddit and Twitter, high short-term interest, and short cuts focused on retail traders characterize most meme stocks. And while the hype around some famous names has started to fade, new names are now making the buzz on the WallStreetBets (WSB) subreddit.
Although the most popular meme, GameStop Corporation (GME) is up 801.3% year-to-date, the company’s volatile financial data and low growth potential could cause prices to drop. short term. In its most recent quarter, GME’s operating loss was $ 58 million and its net loss was $ 61.6 million. Moreover, analysts expect its EPS to drop 20.9% in the next quarter. The stock has lost 10.7% of its price over the past month.
Therefore, we believe that the fundamentally sound stocks Apple Inc. (AAPL), Sirius XM Holdings Inc. (SIRI) and Goodrich Petroleum Corporation (GDP), which are the subject of much discussion on the WSB subreddit, could be better. choice as GME for memes investors.
Apple Inc. (AAPL)
APPL in Cupertino, Calif., One of the largest manufacturers and suppliers of consumer electronics. The innovative strength and brand value of the company have allowed it to experience strong growth over the years.
This month, AAPL launched two powerful chips: M1Pro and M1Max. These new chips are expected to turn systems into pro-systems with incredible performance, custom technologies and cutting-edge energy efficiency. M1Pro and M1Max also include an Apple-designed media engine that should speed up video processing while maximizing battery life.
AAPL’s total net sales increased 36.4% year-on-year to $ 81.43 billion for its fiscal third quarter, ended June 26, 2021. The company’s gross margin increased 55.4% from its value a year ago to reach $ 35.26 billion. Its operating profit rose 84.3% from the previous year quarter to $ 24.13 billion. In addition, the company’s net profit increased 93.2% year-on-year to $ 21.74 billion.
AAPL’s revenue for its 2021 fiscal year is expected to grow 33.4 percent year-on-year to $ 366.24 billion. The company has an impressive history of profit surprises; it has beaten consensus EPS estimates in each of the past four quarters. Its EPS is expected to increase by 70.7% in the current year. AAPL’s stock has risen 28.5% over the past year.
AAPL’s strong fundamentals are reflected in its POWR ratings. The stock has an overall B rating, which is equivalent to a purchase in our proprietary rating system. POWR ratings assess stocks based on 118 distinct factors, each with its own weight.
Additionally, the stock has an A rating for sentiment and a B rating for quality. We also rated AAPL for value, momentum, stability and growth. Click here to access all AAPL ratings. AAPL is ranked # 19 out of 50 stocks in the Technology Industry Ranked B – Hardware.
Sirius XM Management Inc. (SIRI)
Based in New York SIRI is an audio entertainment company that delivers programming and content on the company’s audio platforms supporting subscriptions and digital advertising. The company operates two audio entertainment segments: Sirius XM and Pandora. In addition, its service is distributed through its two satellite radio systems, and its platforms collectively reach over 150 million listeners in all categories of digital audio.
This month, one of SIRI’s subsidiaries, Sirius XM Radio Inc., struck new creative programming and a strategic agreement with Audio Up, a podcast production and audio entertainment studio. The deal is expected to give SIRI an exclusive ‘first look’ co-production option for Audio Up’s original new podcast concepts and provide distribution options in its properties, exclusive rights to manage and sell advertising inventory and a sponsorship in connection with any podcast produced for SIRI through its SXM Media combined sales organization.
For the second quarter, ended June 30, 2021, SIRI’s total revenue increased 15.2% year-over-year to $ 2.16 billion. The company’s operating profit rose 58.6% from its value a year ago to $ 658 million. Its net profit increased 78.2% from the previous year quarter to $ 433 million. In addition, the company’s EPS increased 100% year-on-year to $ 0.1.
Analysts expect SIRI’s revenue to grow 6.9 percent year-on-year to $ 8.59 billion in its 2021 fiscal year. Additionally, its EPS is expected to grow 16 percent over the course of the year. ‘current year. Over the past nine months, the stock has climbed 1.7% in price.
SIRI’s POWR ratings reflect this promising outlook. The stock has an overall B rating, which is equivalent to a purchase in our proprietary rating system. Additionally, the stock has a B rating for stability, momentum, and quality.
In addition to the POWR ratings I just outlined, the SIRI ratings for, Value, Growth, and Sentiment can be seen here. SIRI is ranked # 2 out of 6 stocks in the Entertainment Industry – Radio, rated A.
Goodrich Petroleum Corporation (GDP)
GDP in Houston, Texas, is an independent producer and developer of natural gas and crude oil. It has interests primarily in the Haynesville Shale Trend, the Tuscaloosa Marine Shale Trend and the Eagle Ford Shale Trend. In addition, the Company owns interests in 189 producing oil and natural gas wells located in 37 fields in six states in the United States.
Last month, GDP acquired eight wells in the heart of the Haynesville Shale Basin in the parishes of Caddo and Bossier, Louisiana, for $ 1.5 million. These eight wells produce approximately 2,000 Mcfe per day and approximately 5,800 gross acres (4,500 net acres). With this acquisition, the company now owns some 32,000 net acres in the heart of the zone.
In the second quarter, ended June 30, 2021, GDP operating profit was $ 13.02 million, compared to an operating loss of $ 19.55 million in the quarter of the year. former. The company’s net loss declined 49.6% year-over-year to $ 11.56 million. Its adjusted EPS was $ 0.64 for the quarter, compared to an adjusted loss per share of $ 1.11 in the second quarter of 2020. In addition, the company’s cash and cash equivalents were $ 782 million during the period.
For its 2021 fiscal year, analysts expect GDP revenue to grow 78.8 percent year-on-year to $ 167.8 million. The company’s EPS is expected to increase 1,861.9% in the current year. The stock has gained 110.7% in the past six months.
It’s no surprise that GDP has an overall rating of B, which equates to a purchase in our POWR rating system. Additionally, GDP has an A rating for momentum and a B rating for growth and sentiment in our POWR rating system. Click here to view additional POWR ratings for GDP (Value, Stability, and Quality). In the energy industry – oil and gas, GDP is ranked 13th out of 89 stocks.
AAPL shares were trading at $ 148.86 per share on Monday afternoon, up $ 0.17 (+ 0.11%). Year-to-date, the AAPL has gained 12.71%, compared to a 22.91% increase for the benchmark S&P 500 over the same period.
About the Author: Priyanka Mandal
Priyanka is an avid investment analyst and financial journalist. After earning a master’s degree in economics, her interest in financial markets motivated her to embark on her career in investment research. Following…