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How to Play These 4 Most-Mentioned WallStreetBets Stocks
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The Generation Z is often known to create and interpret trends, especially on digital/social platforms. Exposure to the Internet, social networks, and smartphones has also influenced how Gen Zers view consumption and build relationships with brands. It is not only transforming consumption patterns and landscapes but also altering socioeconomic brackets. Gen Zers have also influenced other generations into making conversations and giving opinions on various topics and trending subjects over websites like Reddit and on platforms like Twitter and Facebook.
The financial markets also get a share of their wins and losses from the buzz. Let us discuss the four highest-mentioned WallStreetBets that investors can look out for in 2022 -- Tesla, Inc. (TSLA - Free Report) , United States Steel Corporation (X - Free Report) , Advanced Micro Devices, Inc. (AMD - Free Report) and Ford Motor Company (F - Free Report) .
r/wallstreetbets, commonly known as WallStreetBets, is a forum where communities discuss stock and option trading. These online groups can build hype regarding a stock through narratives (often memes, hence, the name “meme stocks”) and conversations, which leads the company to gain a cult-like following. This greatly influenced stock prices and pushed meme stocks into becoming overvalued in comparison to their fundamentals. The meme stock trend began in 2020 with GameStop Corp. (GME), the first meme stock, jumping by 100 folds over several months.
Over the past year, the community has designed their own language to use on online forums and social media to design a spectacular short squeeze (an unusual condition that can trigger rising prices to jump rapidly than tradable stocks.) The multiplicative effect of sharing posts to make them go viral has helped memes gain increasing prevalence and relevance. In fact, their basic framework relies on pop culture references so that they can spread and play on people’s minds.
The trillion-dollar electric vehicle (EV) maker, Tesla, has been the meme community’s favorite, so much so that the stock was mentioned more than 31 times in the last 24 hours. CEO Elon Musk actively follows the subreddit WallStreetBets. In fact, on Jan 26, he tweeted “Gamestonk!!” with a link of WallStreetBets, and is often tagged as the "Meme Lord" by the community. While Musk may have wanted a piece of the cake as well, he claims that short sellers hurt the valuation of the company.
This Zacks Rank #1 (Strong Buy) company’s shares have outperformed the industry over the past year and hit a milestone in third-quarter 2021. With gross auto margins attaining a record high, TSLA is currently riding the robust Model 3/Y demand despite headwinds like the global chip shortage. Tesla is expected to start production in its Berlin Gigafactory by the end of this year and the Texas one will be up and running by early 2022. Apart from electric vehicles, the company is ramping up its energy generation and storage divisions. In the last quarterly report (third-quarter 2021), Tesla announced earnings of $1.86, which surpassed the Zacks Consensus Estimate of $1.39, with revenues of $13,757 million again beating the consensus mark of $13,163 million.
Tesla’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Automotive - Domestic industry’s projected earnings growth of 16.9%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.2% upward over the past 60 days. So far this year, TSLA shares have jumped 55%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our next stock is Ford Motor Company, another automobile giant headlining the meme world. While many may not associate this blue-chip stock to be on netizens’ cards, the slow growth pace and historically low valuations attracts memers constantly. A recent subreddit headline is “Ford is planning on being #2 electric car maker in the USA behind TSLA. It currently is about 1/12 the value of Tesla.” The electric vehicle revolution is helping change Ford, making it a major player in the space, with the giant planning to invest $30 billion in its electrified fleet by 2025.
This Zacks Rank #3 (Hold) company’s aggressive electrification push has made it sell 2,848 units of Mustang Mach-E in October alone. Though Ford’s massive spending planned on green vehicles and self-driving cars and high commodities and freight expenses may be a hurdle, the “all-electric” propaganda may take the company to greater highs. In the last quarterly earnings call, Ford raised its full-year 2021 guidance, thanks to strong demand for EVs and pre-booking of recently launched vehicles. It announced earnings of 51 cents per share in third-quarter 2021, surpassing the Zacks Consensus Estimate of 28 cents, with revenues of $35,683 million.
Ford’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Automotive - Domestic industry’s projected earnings growth of 16.9%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 22.1% upward over the past 60 days. So far this year, Ford’s shares have surged more than 100%.
The current infrastructure bill hyped-up United States Steel Corporation among meme makers. With 25 mentions in the last 24 hours, this integrated steel producer’s sentiment is more discussed concerning its ticker symbol “X.” Regardless, this Zacks Rank #2 (Buy) company has significant growth opportunity given the current catalyst despite supply-chain bottlenecks and the steel industry’s overcapacity. In third-quarter 2021, the United States Steel Corp swung to a profit of $6.97 per share from a loss of $1.06 per share in the year-ago quarter. It reported earnings of $5.36 per share, outpacing the Zacks Consensus Estimate of $4.85.
The company’s expected earnings growth rate for the current year is more than 100% against the Zacks Steel - Producers industry’s projected earnings decline of 6.1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 7% upward over the past 60 days. United States Steel Corp’s shares have rallied 23.7% so far this year.
The last one on our list for the 2022 meme stock watchout list is Advanced Micro Devices. The company’s shares have jumped 40.2% so far this year, riding on robust performance from the computing and graphics, and enterprise embedded and semi-custom segments. In fact, in November, Facebook-parent Meta Platforms announced that it has picked AMD chips to go into its data centers. The chipmaker gives tough competition to Intel and NVIDIA in the supercomputing space. Strong sales of its Ryzen and EPYC server processors have helped prominence in the cloud and gaming space.
Advanced Micro Devices reported third-quarter 2021 earnings of 73 cents per share, which surpassed the Zacks Consensus Estimate of 66 cents and revenues of $4.31 billion. The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Electronics - Semiconductors industry’s projected earnings growth of 28.1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 5.6% upward over the past 60 days.
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How to Play These 4 Most-Mentioned WallStreetBets Stocks
The Generation Z is often known to create and interpret trends, especially on digital/social platforms. Exposure to the Internet, social networks, and smartphones has also influenced how Gen Zers view consumption and build relationships with brands. It is not only transforming consumption patterns and landscapes but also altering socioeconomic brackets. Gen Zers have also influenced other generations into making conversations and giving opinions on various topics and trending subjects over websites like Reddit and on platforms like Twitter and Facebook.
The financial markets also get a share of their wins and losses from the buzz. Let us discuss the four highest-mentioned WallStreetBets that investors can look out for in 2022 -- Tesla, Inc. (TSLA - Free Report) , United States Steel Corporation (X - Free Report) , Advanced Micro Devices, Inc. (AMD - Free Report) and Ford Motor Company (F - Free Report) .
r/wallstreetbets, commonly known as WallStreetBets, is a forum where communities discuss stock and option trading. These online groups can build hype regarding a stock through narratives (often memes, hence, the name “meme stocks”) and conversations, which leads the company to gain a cult-like following. This greatly influenced stock prices and pushed meme stocks into becoming overvalued in comparison to their fundamentals. The meme stock trend began in 2020 with GameStop Corp. (GME), the first meme stock, jumping by 100 folds over several months.
Over the past year, the community has designed their own language to use on online forums and social media to design a spectacular short squeeze (an unusual condition that can trigger rising prices to jump rapidly than tradable stocks.) The multiplicative effect of sharing posts to make them go viral has helped memes gain increasing prevalence and relevance. In fact, their basic framework relies on pop culture references so that they can spread and play on people’s minds.
The trillion-dollar electric vehicle (EV) maker, Tesla, has been the meme community’s favorite, so much so that the stock was mentioned more than 31 times in the last 24 hours. CEO Elon Musk actively follows the subreddit WallStreetBets. In fact, on Jan 26, he tweeted “Gamestonk!!” with a link of WallStreetBets, and is often tagged as the "Meme Lord" by the community. While Musk may have wanted a piece of the cake as well, he claims that short sellers hurt the valuation of the company.
This Zacks Rank #1 (Strong Buy) company’s shares have outperformed the industry over the past year and hit a milestone in third-quarter 2021. With gross auto margins attaining a record high, TSLA is currently riding the robust Model 3/Y demand despite headwinds like the global chip shortage. Tesla is expected to start production in its Berlin Gigafactory by the end of this year and the Texas one will be up and running by early 2022. Apart from electric vehicles, the company is ramping up its energy generation and storage divisions. In the last quarterly report (third-quarter 2021), Tesla announced earnings of $1.86, which surpassed the Zacks Consensus Estimate of $1.39, with revenues of $13,757 million again beating the consensus mark of $13,163 million.
Tesla’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Automotive - Domestic industry’s projected earnings growth of 16.9%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.2% upward over the past 60 days. So far this year, TSLA shares have jumped 55%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our next stock is Ford Motor Company, another automobile giant headlining the meme world. While many may not associate this blue-chip stock to be on netizens’ cards, the slow growth pace and historically low valuations attracts memers constantly. A recent subreddit headline is “Ford is planning on being #2 electric car maker in the USA behind TSLA. It currently is about 1/12 the value of Tesla.” The electric vehicle revolution is helping change Ford, making it a major player in the space, with the giant planning to invest $30 billion in its electrified fleet by 2025.
This Zacks Rank #3 (Hold) company’s aggressive electrification push has made it sell 2,848 units of Mustang Mach-E in October alone. Though Ford’s massive spending planned on green vehicles and self-driving cars and high commodities and freight expenses may be a hurdle, the “all-electric” propaganda may take the company to greater highs. In the last quarterly earnings call, Ford raised its full-year 2021 guidance, thanks to strong demand for EVs and pre-booking of recently launched vehicles. It announced earnings of 51 cents per share in third-quarter 2021, surpassing the Zacks Consensus Estimate of 28 cents, with revenues of $35,683 million.
Ford’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Automotive - Domestic industry’s projected earnings growth of 16.9%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 22.1% upward over the past 60 days. So far this year, Ford’s shares have surged more than 100%.
The current infrastructure bill hyped-up United States Steel Corporation among meme makers. With 25 mentions in the last 24 hours, this integrated steel producer’s sentiment is more discussed concerning its ticker symbol “X.” Regardless, this Zacks Rank #2 (Buy) company has significant growth opportunity given the current catalyst despite supply-chain bottlenecks and the steel industry’s overcapacity. In third-quarter 2021, the United States Steel Corp swung to a profit of $6.97 per share from a loss of $1.06 per share in the year-ago quarter. It reported earnings of $5.36 per share, outpacing the Zacks Consensus Estimate of $4.85.
The company’s expected earnings growth rate for the current year is more than 100% against the Zacks Steel - Producers industry’s projected earnings decline of 6.1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 7% upward over the past 60 days. United States Steel Corp’s shares have rallied 23.7% so far this year.
The last one on our list for the 2022 meme stock watchout list is Advanced Micro Devices. The company’s shares have jumped 40.2% so far this year, riding on robust performance from the computing and graphics, and enterprise embedded and semi-custom segments. In fact, in November, Facebook-parent Meta Platforms announced that it has picked AMD chips to go into its data centers. The chipmaker gives tough competition to Intel and NVIDIA in the supercomputing space. Strong sales of its Ryzen and EPYC server processors have helped prominence in the cloud and gaming space.
Advanced Micro Devices reported third-quarter 2021 earnings of 73 cents per share, which surpassed the Zacks Consensus Estimate of 66 cents and revenues of $4.31 billion. The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Electronics - Semiconductors industry’s projected earnings growth of 28.1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 5.6% upward over the past 60 days.