3 Meme Stocks Under $10 That Will Double in 3 Months

Equity markets go through different levels of bullishness. There are times when blue-chips rally and growth stocks are subdued. Further, after a big correction in growth stocks in the post-pandemic market, only selective growth ideas surged. Others witnessed price and time correction. The most bullish phase is when there is a broad-based rally for growth and blue-chip stocks. In my view, that’s likely in the coming quarters and I would consider exposure to high-risk meme stocks under $10 for 100% returns in quick time.

The biggest reason to be bullish on equities is expansionary monetary policies. I believe that central banks around the world will cut interest rates in the next 12 to 18 months. While the objective is to boost growth, easy money translates into speculation across asset classes.

Therefore, it’s a good time to buy meme stocks for multibagger returns at the blink of an eye. This column discusses three meme stocks to buy with reasonably good fundamentals and positive business catalysts that are likely to support the big rally.

Bitfarms (BITF)

Bitfarms (NASDAQ:BITF) is a Bitcoin (BTC-USD) miner with some interesting developments in the recent past.

The mining company received an offer of $2.30 per share from Riot Platforms (NASDAQ:RIOT) earlier this month. However, Bitfarms rejected the offer and the stock has trended higher. It’s a clear indication that BITF stock is undervalued. It’s worth noting that Riot has increased its stake to 14% in Bitfarms.

On the business front, the Bitcoin miner has a robust liquidity buffer and is planning aggressive hash rate capacity expansion. Currently, Bitfarms has a capacity of 7.5EH/s and plans to increase capacity to 21EH/s by the end of the year. Recently, the miner announced a guidance of over 35EH/s by the end of 2025.

With Bitcoin likely to remain in an uptrend, I expect robust revenue and cash flow upside for Bitfarms in the next 24 months. This is likely to translate into significant upside from current levels.

Cronos (CRON)

A big impending catalyst for cannabis stocks is the likely reclassification of cannabis as a Schedule III drug. In my view, this change is likely in the next few months and cannabis stocks are likely to go ballistic.

Cronos (NASDAQ:CRON) stock seems best positioned to benefit from relatively a friendly regulatory stance. The company has a strong cash buffer of $855 million that’s likely to be used for organic and acquisition driven growth.

It’s worth noting that the cannabis company’s cash is 95% of the current market valuation. This puts into perspective the potential for upside in the foreseeable future.

I must add that Cronos has made an entry into Germany in 2023. With the legalization of cannabis in the country, Cronos is positioned for strong growth. Additionally, the company has entered new markets of Australia and the United Kingdom in the recent past. I therefore expect revenue growth to accelerate and this will support a sharp rally from current levels.

Joby Aviation (JOBY)

Joby Aviation (NYSE:JOBY) stock has been subdued with a correction of 32% in the last 12 months. I see this as a good opportunity to accumulate with the flying car company expected to commercialize eVTOL in 2025. It’s worth noting that JOBY traded at 52-week highs of $12. I would not be surprised if the eVTOL stock makes new highs in the next three months.

In a recent development, Joby announced the acquisition of Xwing’s autonomous flight division. The latter is in the development of autonomous technology for aviation and has “250 fully autonomous flights and more than 500 auto-landings completed to date.”

The acquisition is likely to provide Joby with a technological edge over peers. The company also expects to accelerate contracts with the U.S. Department of Defense with the autonomous technology advantage.

I must add that besides the commercialization of eVTOL in the U.S. next year, Joby has partnered for expansion in the UAE and Saudi Arabia. With visibility for healthy growth in 2025 and beyond, I expect a strong reversal rally for JOBY stock.

On the date of publication, Faisal Humayun did not hold (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.