Reddit group WallStreetBets has been instrumental in pumping several stocks. Some of these like AMC Entertainment and GameStop are the usual meme names with questionable fundamentals and sky-high valuations.
However, some of the WallStreetBets stocks are fundamentally strong companies where even Wall Street analysts see upside potential. Here are the five such stocks that you can consider buying this week.
SoFi (NYSE: SOFI)
Social Finance went public earlier this year through a SPAC (special purpose acquisition company merger). It’s a fintech name and offers products ranging from student loans, mortgages, credit cards, stock trading, and cryptocurrency trading. The company is also expected to get a bank charter which will help uplift sentiments.
SOFI stock is down sharply from its highs but it looks like a good WallStreetBets stock to buy in July. The outlook for the fintech industry is positive and companies like SOFI are in a prime position to capitalize on the trend. The company has turned positive on the adjusted EBITDA level and should continue to report incrementally better earnings.
Wall Street analysts are also bullish on the stock and both the analysts covering it have rated it as a buy. While Oppenheimer has a target price of $25, last month Rosenblatt Securities initiated coverage on SoFi with a buy rating and $30 target price. Its median target price of $27.50 is a premium of 77% over current prices.
SoFi is a WallStreetBets stock to buy for the long term
Sounding a positive note on fintech companies, Rosenblatt analyst Sean Horgan said “The incumbent legacy banks face a challenging road ahead as a new wave of digitally native and mobile-first banks rush into the market.” Commenting on SoFi he said, “But for now, challenger banks face a ‘jump ball’ opportunity to seize market share from the old guard … and SOFI is well-positioned to capture a significant amount of the value hanging in the balance.”
From a valuation perspective also, SoFi looks attractive. If you are looking at a fintech stock to hold for the long run, this WallStreetBets stock will fit the bill.