Stocks to buy

While it may seem meme stocks are slowing down, they continue to have a massive impact on the market. It’s a stark reminder that meme stocks are here to stay.

Robinhood CEO and co-founder Vlad Tenev echoed these ideas in a recent interview with CNBC’s Andrew Ross Sorkin, saying the phenomenon gives embattled companies access to the capital they otherwise wouldn’t possess.

“I think it’s a real thing. There are customers that love these companies, they want them to thrive,” Tenev told CNBC ahead of the stock trading app’s Nasdaq debut. “You’re seeing [meme stocks] also get resources that allow them to hire really good management teams, in some cases, and then build for the future.”

Now, some companies have generated more interest than others and have attained iconic status with Redditors. These include Nokia (NYSE:NOK), Blackberry (NYSE:BB), GameStop (NYSE:GME), and AMC Entertainment (NYSE:AMC). Most people following meme stocks know these names. But other meme stocks do not often grab the headlines as much. That is what this list is all about.

Let’s get a bit more granular on seven names generating interest on the message boards:

  • Naked Brand Group (NASDAQ:NAKD)
  • Express (NYSE:EXPR)
  • EZGO Technologies (NASDAQ:EZGO)
  • Bed Bath & Beyond (NASDAQ:BBBY)
  • Corsair Gaming (NASDAQ:CRSR)
  • ContextLogic (NASDAQ:WISH)

Meme Stocks: Naked Brand Group (NAKD)

Source: Shutterstock

Much like other meme stocks, Naked Brand surged in late May and early June. Although the rally has lost a bit of steam, shares are still up 175.5% year-to-date (YTD).

I have been critical of the company’s recent ascent. However, it is understandable why the intimate apparel retailer is doing well.

Management announced a restructuring that involved divesting its Bendon segment to focus squarely on FOH Online, its e-commerce platform. Such announcements can make a lot of difference in a news-sensitive atmosphere. In the long run, though, consistent sales growth is the only way this stock can become a viable investment.

On the bright side, the Reddit rally has given the company a lot of cash to play with, helping it eliminate debt and pursue strategic opportunities. If the company can demonstrate solid bottom line and top-line growth, a case can be made for this one.

Zomedica (ZOM)

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Zomedica is a development stage veterinary diagnostic and pharmaceutical company. Its premier product is the Truforma platform, which will allow veterinarians to conduct in-office diagnoses for common diseases affecting canine and feline companions.

The company has a huge addressable market. The global interest in pet adoptions swelled in the early phase of the pandemic. Although now that the economy is reopening, there is a concern for adoption rates to slow down. But in the long run, the adoption of pets is a secular trend. That’s why Zomedica makes sense from an investment standpoint.

But the company has just one sale: to Jason Berg, founder, and president of Guardian Veterinary Specialists, a 29,000-square-foot hospital in Brewster, New York. To change the equation, it has tapped Miller Veterinary Supply, one of America’s oldest wholesale distributors of pet supplies to veterinarians, to market Truforma.

It would be best to sit on the sidelines and see whether the company can generate sales momentum. Investing based on a single sale wouldn’t be prudent.

Meme Stocks: Express (EXPR)

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Meme stocks are often criticized for having bad fundamentals. However, that is not always the case. Apparel retailer Express is displaying strong top-line growth, reducing costs and becoming a leaner organization.

In the first quarter, sales jumped 64% over the same period in 2020 to $346 million; comparable sales increased 5%, including retail and e-commerce. Management’s goal is to grow sales from its digital channel to $1 billion by 2024.

Gross profit improved to $79 million, up from a $46 million loss mainly attributable to a better cost structure, lower rents, and better optimized physical locations. EBITDA loss came in at $22 million, improving the $111 million loss in the year-earlier period.

Express ended the quarter with $84 million in cash, up from $55 million in 2020. It burned $5 million in cash, down from the $135 million that it went through a year earlier.

Management also announced plans to sell up to 15 million shares to raise funds for general corporate purposes. Understandably, the markets reacted negatively to the move. But the cash will help towards management ramping up its digital infrastructure. A steep 16.6% drop in the last month should give you more incentive to grab this one at a discount.

EZGO Technologies (EZGO)

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EZGO is a short-distance electric transportation solutions provider in China. The stock has lost 44.2% of value in the last three months, part of its downward direction since its Nasdaq initial public offering last January.

Much of its explosive price momentum is thanks to the race to find the next Tesla (NASDAQ:TSLA). It led to some mind-boggling valuations.

EZGO is involved in designing, producing, renting, and distributing e-bicycles and e-scooters through its Cenbird and Dilang brands. Apart from this core offering, EZGO is engaged in selling and renting lithium batteries and smart charging piles.

The exposure to a highly lucrative business area is definitely an EZGO stock strength. But the company is operating in an intensely competitive sphere with the market split up between Yadea Group Holding (OTCMKTS:YADGF), Jiangsu Xinri E-Vehicle, and Niu Technologies (NASDAQ:NIU), with Yadea leading the pack with a 17% market share.

Meanwhile, EZGO has managed to grow revenue by 224% in 2020 compared to 2019, following 63% of sales growth in 2019 compared to 2018. If the company expands its business and maintains sales momentum, this will become an interesting play.

Meme Stocks: Bed Bath & Beyond

Source: Shutterstock

Although most companies suffered during the pandemic, a relative few actually saw their earnings increase. Home furnishings retailer Bed Bath & Beyond managed three consecutive quarters of positive comparable sales growth.

There are several reasons why the retailer was able to do well. But chief among them has to be the CEO, Mark Tritton. When he took the reins, Bed Bath & Beyond struggled, but he managed to turn things around due to a multi-year plan that included getting rid of underperforming brands while focusing on omni-channel and e-commerce efforts.

Tritton came to BBBY from Target (NYSE:TGT), and the changes he is making are paying dividends. Despite the pandemic, the retailer continues to be profitable, is free cash flow positive, has more than $1 billion in cash. In the first quarter of the year, revenue jumped 49% year-over-year and beat analysts’ expectations.

If you want to learn more about Bed Bath & Beyond and its strategy, I will recommend checking out InvestorPlace articles written by Bret Kenwell and Luke Lango on this stock. They get granular regarding the success and prospects of this company.

Corsair Gaming (CRSR)

Source: WDphotography /

Corsair Gaming is a computer peripheral and hardware company providing accessories and equipment for the e-sports market headquartered in Fremont, California.

In terms of price momentum and earnings, Corsair has done exceedingly well in the last few years. The latest quarterly numbers missed the mark. However, the gaming company has beat Wall Street analysts’ consensus earnings estimates three times in the last four quarters. Of particular importance is the company’s free cash flow (FCF).

I would not worry too much about the earnings miss. The video game industry is one of the fastest-growing sectors anywhere in the world. That will not change anytime soon. In fact, as InvestorPlace’s Ian Cooper pointed out, “the e-sports market is booming, with the viewership expected to double from 335 million in 2017 to 646 million by 2023.”

Given sound fundamentals and the multi-billion-dollar potential of the global gaming market, CRSR is one of the better meme stocks out there. Any momentary blip should give you an incentive to buy more of this one.

Meme Stocks: ContextLogic (WISH)

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ContextLogic is yet another example of how many times Redditors get it right in spades. The company is an e-commerce play targeting the value-conscious consumer. eBay (NASDAQ:EBAY) and Amazon (NASDAQ:AMZN) have created innovations that have become synonymous with e-commerce. Due to their ubiquity, ContextLogic often remains absent from the discourse. (For a deeper dive on WISH stock, check out Thomas Niel’s article published this morning.)

But to ignore ContextLogic would be a huge folly.

In 2020, ContextLogic’s discovery-focused app was the third most downloaded app in the world behind Amazon and Shopee, a Singaporean e-commerce online shopping platform popular in Southeast Asia and Taiwan. Customers can take advantage of a scrollable personalized feed tailored to individual interests. According to the 2020 WISH 10-K filing, over 70% of sales involve zero search queries.

With an asset-light model and a user-driven platform, it is easy to see why ContextLogic will continue to do well. The most enticing bit is that shares are down 11.5% in the last month. This makes it an excellent time to load up on this one.

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 Publishing Guidelines.

Faizan Farooque is a contributing author for and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. Faizan does not directly own the securities mentioned above.