Meme stocks, or stocks that are popular among online communities and social media platforms, have been one of the most volatile and exciting investment trends of the year. While some of these stocks have soared to new heights, others have crashed and burned, leaving investors with mixed feelings. However, there are still some undervalued meme stocks that could offer attractive returns in September 2023. Here are three of them.
Foot Locker: A Retail Giant with a Loyal Fan Base
Foot Locker (NYSE: FL) is a leading retailer of athletic footwear and apparel, operating over 3,000 stores worldwide. The company has been struggling with declining sales and consumer softness, as the pandemic and the shift to online shopping have hurt its business. In the second quarter of 2023, Foot Locker reported a 9.8% drop in revenue and a 12.4% decline in comparable store sales.
However, Foot Locker is not giving up on its growth strategy. The company has been investing in digital transformation, e-commerce expansion, store optimization, and brand partnerships. It has also been acquiring smaller niche brands, such as WSS and Atmos, to diversify its portfolio and reach new customers. Moreover, Foot Locker has a loyal fan base among sneaker enthusiasts and sports fans, who often flock to its stores for exclusive releases and collaborations.
Foot Locker is also one of the most popular meme stocks among retail investors, who see it as an undervalued opportunity. According to MemeStocks.org
Foot Locker is currently trading at a low valuation compared to its peers. The stock has a price-to-sales ratio of 0.22, well below the industry median of 0.69. It also has a price-to-earnings ratio of 8.7, much lower than the industry average of 21.9. Additionally, Foot Locker pays a generous dividend yield of 4.2%, which could provide some income for investors.
Foot Locker has a high price target of $30, implying a potential upside of 69% from its current price of $17.76. The stock also has a consensus buy rating from analysts, who expect the company to recover from its recent slump and grow its earnings by 15% annually over the next five years.
Rio Tinto: A Mining Giant with a Strong Portfolio
Rio Tinto (NYSE: RIO) is one of the world’s largest mining companies, producing a wide range of commodities such as iron ore, copper, aluminum, gold, diamonds, and uranium. The company has been benefiting from the strong demand and high prices for its products, especially iron ore, which accounts for more than half of its revenue.
In the first half of 2023, Rio Tinto reported a 71% increase in revenue and a staggering 271% surge in net income. The company also announced a record dividend payout of $9.1 billion, equivalent to $5.61 per share. Rio Tinto has a strong balance sheet, with $14 billion in cash and $13 billion in debt.
Rio Tinto is also one of the most undervalued meme stocks in the market. According to MemeStocks.org, Rio Tinto has a positive score of 0.55, indicating that more people are bullish than bearish on the stock. The stock also has a low short interest ratio of 1%, meaning that there is little risk of a short squeeze.
Rio Tinto is trading at a bargain valuation compared to its peers. The stock has a price-to-sales ratio of 1.8, well below the industry median of 2.6. It also has a price-to-earnings ratio of 6.4, much lower than the industry average of 14.5. Moreover, Rio Tinto pays a hefty dividend yield of 9%, which could reward investors with steady income.
Rio Tinto has a high price target of $120, implying a potential upside of 48% from its current price of $81.02. The stock also has a consensus buy rating from analysts, who expect the company to grow its earnings by 12% annually over the next five years.
Tenet Healthcare: A Healthcare Provider with a Solid Performance
Tenet Healthcare (NYSE: THC) is a diversified healthcare services company that operates 65 hospitals and over 450 outpatient facilities across the US. The company also owns Conifer Health Solutions, a revenue cycle management business that serves more than 700 clients.
Tenet Healthcare has been delivering solid financial results amid the challenging healthcare environment caused by the pandemic. In the second quarter of 2023, Tenet Healthcare reported a 10.4% increase in revenue and a 23.6% increase in adjusted EBITDA. The company also raised its full-year guidance for revenue, earnings, and cash flow.
Tenet Healthcare is also one of the most undervalued meme stocks in the market. According to MemeStocks.org, Tenet Healthcare has a positive score of 0.51, indicating that more people are optimistic than pessimistic about the stock. The stock also has a low short interest ratio of 3.8%, meaning that there is less chance of a short squeeze.
Tenet Healthcare is trading at a low valuation compared to its peers. The stock has a price-to-sales ratio of 0.2, well below the industry median of 1.1. It also has a price-to-earnings ratio of 9.9, much lower than the industry average of 25.7. Furthermore, Tenet Healthcare pays a nominal dividend yield of 0.1%, which could increase in the future.
Tenet Healthcare has a high price target of $90, implying a potential upside of 45% from its current price of $62.08. The stock also has a consensus buy rating from analysts, who expect the company to grow its earnings by 18% annually over the next five years.
