• Lucid Group (LCID): The electric vehicle upstart has the potential to take on the giants.
• American Airlines (AAL): Revenge travel might bode well for airlines-related meme stocks.
• Digital World Acquisition Corp (DWAC): In some cases, controversy sells.
• Fortuna Silver Mines (FSM): Inflation makes precious metals investments meme stocks to buy.
• Grocery Outlet (GO): Cheap groceries are massively in vogue due to soaring prices.
• Nokia (NOK): While risky, NOK has always had a strong speculative following.
• Bed Bath & Beyond (BBBY): This may be the sentiment benchmark of meme stocks moving forward.

Within the transformative nature of the coronavirus pandemic were subsegments of radical change, among them the rise of meme stocks to buy. Characterized by a cult-like following on social media and public internet forums, these investments gained notoriety for flipping the mainstream dynamic of Wall Street. Most notoriously, meme-traders took the opposite bet en masse on GameStop (NYSE:GME), sparking a short squeeze.

You all know what happened next. Rather than imploding into irrelevancy, GameStop has become a rallying cry to give vulturous hedge funds a taste of their own medicine. Eventually, the concept of meme stocks moved onto other investments – many of them with legitimate bullish narratives. Therefore, it’s a mistake to assume that all cultish trades are nonsensical. Many of them are quite rational indeed.

To provide further confidence toward those considering meme stocks to buy, the community of diamond hands – or those that refuse to hit the “sell” button – stand ready to hold the line. Not only will they not give in, they’re very vocal about defending the honor of their underlying holdings. So, word to the wise: don’t mess around with these folks unless you’re ready to take the heat.

That said, you also want to perform your due diligence before engaging in meme stocks or any other investment category. As the Securities & Exchange Commission noted, unscrupulous people can take advantage of the speculative environment for nefarious activities. Just be careful out there as you assess the below popular trades.

Meme Stocks: Lucid Group (LCID)

One of the most popular meme stocks to buy based on previously being one of the core holdings of Roundhill MEME ETF (NYSEARCA:MEME), electric vehicle manufacturer Lucid Group (NASDAQ:LCID) has been generating serious buzz since its merger with a special purpose acquisition company in early 2021. It’s one of the few SPACs post-business combination that have performed well relative to its initial offering price.

But don’t just think the hype is all about market interest and not what it puts down on the road. A few months ago, MotorTrend granted the Lucid Air the honor of best car of the year. Thanks to the Air’s engineering prowess, excellent performance, capable range and efficiency, it has the potential to take on sector king Tesla (NASDAQ:TSLA).

And yes, it’s pricey but that’s also the point. Lucid recognizes that macroeconomic dynamics don’t yet call for EVs that average households can afford. For now, the company will focus on the affluent crowd, eventually working its way lower should circumstances justify it.

American Airlines (AAL)

One of the trickiest meme stocks to navigate, American Airlines (NASDAQ:AAL) is also compelling for speculators at this juncture. That’s because people are generally tired of Covid-19 and its associated protocols and mitigation measures. Indeed, information from Johns Hopkins Medicine implied that Americans were already fed up with the pandemic in the summer of 2020.

It’s a negative catalyst that can be cynically positive for AAL and other travel-related meme stocks. As a Washington Post article mentioned earlier this year, revenge travel – or the desire to take vacations that were prevented in years past – is now an actual thing. Combined with the general assumption that people are much more comfortable with strangers in tight spaces (regarding disease spread), AAL could end up being a surprise winner.

Still, you should be aware that air rage incidents have spiked since the start of Covid-19, which could impact the airlines industry. Also, American Airlines and its peers have absorbed substantial financial damage that will take years to resolve.

Digital World Acquisition Corp (DWAC)

A lot can change in a month and a half. Just ask stakeholders of Digital World Acquisition Corp (NASDAQ:DWAC). One of the most controversial SPACs – or just any publicly traded entity for that matter – DWAC is poised to take conservative-leaning social media platform Truth Social public. Running on the concept of censorship-free media, Truth Social apparently stands in sharp contrast to mainstream social networks.

Up until early March of this year, DWAC was on the cusp of doubling on a year-to-date basis. At time of writing, it’s in negative territory, a harsh reversal of fortune. Still, the SPAC is the No. 2 holding of the Roundhill MEME ETF as of April 17. Though I don’t want to read too into the print, this dynamic suggests that DWAC commands an immense fanbase – a key characteristic of meme stocks.

While a risky proposition due to the recent volatility, speculators may want to keep tabs on DWAC due to political rumblings. President Joe Biden’s unpopularity levels have hit records, breathing relevance – whether you like it or not – into DWAC.

Meme Stocks: Fortuna Silver Mines (FSM)

Though holding ranks can change at a moment’s notice, for now, Fortuna Silver Mines (NYSE:FSM) is standing at the top of the heap of meme stocks to buy. That’s based off the weighting of FSM on the aforementioned MEME ETF. Arguably, out of all the market-related memes out there, Fortuna makes the most sense.

As you know, everyone’s talking about inflation, including yours truly. While myriad factors contributed to soaring consumer prices, the core catalyst could be as simple as the unprecedented expansion of the real M2 money stock. As owners of the world’s reserve currency, the U.S. is incredibly privileged. But that also means the actions of the Federal Reserve will have far-reaching consequences.

Essentially, the Fed must raise interest rates above the rate of inflation (probably well above it) to ease down prices. But does the central bank have the political will to do this? Many argue that it’s unlikely and I can easily see this point as hiking rates would probably mean a recession. That’s why meme stocks related to precious metal miners are gaining steam.

Grocery Outlet (GO)

During the initial onset of the Covid-19 pandemic, the grocer – and businesses such as big-box retailers selling household essentials – garnered a perhaps unprecedented level of relevance. Don’t get me wrong, the grocery business has always been relevant. But with key supplies (toilet paper, anyone?) dwindling, the panic was cynically beneficial for meme stocks like Grocery Outlet (NASDAQ:GO).

Now, with soaring consumer inflation showing no signs of abating, Grocery Outlet has found second wind. In fact, GO is up 21% YTD since the close of the April 15 session, demonstrating that meme stocks aren’t always about wagering on video game retailers with steep financial challenges. Instead, the crowd can often times make prudent decisions.

Further, Grocery Outlet should enjoy continued upside so long as macroeconomic conditions roughly stay the same as they are right now. According to the Bureau of Labor Statistics, besides energy costs, food represents the highest cost increase (percentage wise) on a year-over-year basis since March 2022.

Naturally, with Grocery Outlet specializing in low-cost items, GO is among the meme stocks almost custom-built for present crises.

Nokia (NOK)

Long a popular trade even before the phenomenon of meme stocks came into the picture, telecommunications and information technology specialist Nokia (NYSE:NOK) doesn’t look to be losing support among its fans, even though NOK isn’t performing up to par. On a YTD basis, shares are down nearly 19%, reflecting concerns about ongoing global dynamics.

Adding to the question marks is Nokia’s decision to exit the Russian market, following its government’s decision to invade neighboring Ukraine. Certainly for the Russians, it’s not going to be an insignificant move. According to CNN, Chinese firms Huawei and ZTE (OTCMKTS:ZTCOF) “provide between 40% and 60% of Russia’s wireless network equipment.” Nokia and rival Ericsson (NASDAQ:ERIC) supply the rest.

Therefore, moving out of the market – while a morally appropriate decision – risks hurting Nokia at a time when the company really doesn’t have the luxury of ceding ground. However, it also might not be a time to give up on NOK. If we’ve learned anything, it’s that meme stocks die hard.

Meme Stocks: Bed Bath & Beyond (BBBY)

I don’t really follow meme stocks other than the few that drive mainstream business headlines. Therefore, I was somewhat surprised to see Bed Bath & Beyond (NASDAQ:BBBY) as one of the most popular meme stocks. But recently, the Wall Street Journal warned that the diamond hands could eventually let go of their vice grip on BBBY.

Yes, shares of the retail firm jumped higher due to Chewy (NYSE:CHWY) co-founder Ryan Cohen’s large stake in BBBY. Still, it’s always risky following a major investor into a particular trade. The big boys have the enormous wealth to sustain massive mistakes. On the other hand, your average retail investor does not. And the underlying company’s disappointing earnings result confirmed that the mere advice of billionaires does not constitute due diligence.

But now that BBBY has dropped nearly 13% over the trailing week, is it time to take a risk on shares? For conservative investors, probably not. The valuation may simply be too high for the company’s implied trajectory. Still, if you believe in the power of meme stocks, this may be the ultimate contrarian bet.

On the date of publication, Josh Enomoto held a LONG position in GME. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.