When looking for the best meme stocks to buy, it is important to shield yourself against volatility. The best way to do so is through investing in meme stocks with strong fundamentals. For example, you want to look for stocks with a history of growing earnings, a strong balance sheet and a proven business model. Additionally, consider buying stocks that trade at low valuations to protect yourself against this inherent volatility.
For many investors, meme stocks and solid fundamentals do not go hand in hand. Companies such as GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) are best known for being volatile, and investors often feel they can’t be relied on to provide stability.
While there is no guarantee that any particular meme stock will be successful, investors should carefully research any stock before buying it. Not only do these three companies have strong business models, but they are also operating in high-growth industries. This fundamental strength gives them a distinct advantage over other companies that do not have such a safety net.
Nokia (NOK)
Nokia (NYSE:NOK) was once the undisputed king of the mobile phone market. However, its dominance began to unravel in 2007 with the introduction of the iPhone. It was slow to embrace touch screens and failed to capitalize on the popularity of app stores. As a result, its once-loyal customer base began to desert Nokia in droves. The company desperately attempted to regain market share by adopting Microsoft’s (NASDAQ:MSFT) Windows operating system, but it was too late. By 2013, Nokia’s phones were no longer selling in significant numbers, and the company was forced to sell its handset business to Microsoft.
However, Nokia has been focusing on 5G for the last five years, and it looks to be in a prime position to continue succeeding in this new area. The company has been investing heavily in research and development (R&D) for 5G technology, and its products have been well-received by customers. Nokia is also one of the few companies with a complete end-to-end 5G solution, which gives it a significant advantage over its competitors.
Nokia has stitched together seven consecutive earning beats, demonstrating the company’s superior fundamentals. It is also a well-rounded company with a diversified product portfolio and a strong presence in emerging and developed markets.
Furthermore, Nokia has a strong balance sheet with plenty of dry powder to invest in growth initiatives. In sum, Nokia is a high-quality company with a bright future, which is why Nokia is among the best meme stocks to buy.
Blackberry (BB)
While Blackberry (NYSE:BB) may not be the leading smartphone industry player anymore, it’s one of the best meme stocks to buy for investors.
During the last decade, BlackBerry made several acquisitions that helped it become one of the world’s leading cybersecurity firms. These included smaller companies such as Secusmart and Encription, as well as mobile security solutions business Movirtu Virtual SIM Solutions, and others. Due to these purchases, Blackberry is becoming a major player in the cybersecurity market. The growth of that sector is expected to skyrocket. By 2027, there will be a $298.7 billion market for this industry, up from $159.8 billion in 2022.
In addition, the most widely used embedded system for connected and driverless vehicles is now Blackberry’s QNX. In late 2020, it announced a partnership with Amazon (NASDAQ:AMZN) Web Services (AWS). This could make it preferred among automakers who want their newest sensors hooked up to the cloud through this amazing new platform. Its QNX system is a powerful, scalable platform. It enables automakers to develop and deploy newly connected quickly and autonomous features. Blackberry’s IVY partnership will allow automakers to leverage AWS’s extensive cloud capabilities to power their new connected services.
Blackberry has recently transformed, and the company is now a major player in enterprise software. Its new products are helping to change how businesses operate and communicate. In addition, the company is also working to develop new products that will help power the Internet of Things (IOT). Blackberry’s transformation is evident in its growing portfolio of products and its expanding customer base, making it one of the best meme stocks to buy.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) is the original meme stock in many ways. Its astronomical rise defied all logic, but even the most ardent critics are forced to acknowledge its success.
The stock reached major highs in early 2020, which means there were major losses for Tesla bears that year, totaling $40.1 billion. A few months later, though, it dropped dramatically back to earth. However, Tesla has outperformed the market overall, and its shares are up over 1,000% in the last five years.
Nevertheless, Tesla bears have been out in full force lately, claiming that the company has financial problems. However, Tesla’s aim to become more financially stable and its disciplined cash-flow strategy suggest otherwise. Tesla has stopped racking up debt and is increasing production. Elon Musk said the company could deliver 1.5 million vehicles this year, a ramp up of 60% year-over-year (YOY). If it happens, it will be an outstanding achievement, considering the current supply-chain issues the world is facing.
Despite the macroeconomic headwinds, Tesla has shown that it can succeed as a disruptive force in the auto industry. Its unique approach to electric vehicles has won it a loyal following among environmentalists and tech-savvy consumers. All of these factors contribute to it becoming one of the best meme stocks to buy.
On the publication date, Faizan 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.