WallStreetBets Stock Tips October Week 3 Roundup

Every week we bring to you some of the fundamentally strong and reasonably valued stocks that are popular on Reddit group WallStreetBets. Here are the five best WallStreetBets stocks that you can buy now.

1. SoFi (NYSE: SOFI)

SoFi is currently among the popular WallStreetBets stock. It went public earlier this year through a reverse merger with Social Capital Hedosophia Holdings IV (IPOE). The SPAC (special purpose acquisition company) was sponsored by Chamath Palihapitiya who has also taken Virgin Galactic, OpenDoor, and Clover Health public.

WallStreetBets loves SOFI stock amid hopes of a bank charter

WallStreetBets members are bullish on SOFI stock on optimism over its bank charter. Some of the Wall Street analysts are also optimistic about SOFI due to the impending bank charter. Earlier this week, Morgan Stanley issued a bullish note on SOFI stock. The brokerage cited the expected bank charter as a bullish driver for the stock, the uptick in its student loan refinancing being the other.

“Student loan refinancing has been on ice since the US government administration put federal student loans into deferment in March 2020. Why refi into a lower rate when you don’t have to pay anything at all during deferment and just accrue interest on your federal loan? In February 2022 this all changes,” said Morgan Stanley analyst Betsy Graseck in her note.

She also added, “Competition is rising among challenger FinTechs for Gen Y & Z, but SOFI has a leg up given its roots in the hardest part of consumer finance, lending, along with a robust digital offering. The brokerage assigned a $25 target price for SOFI.

Overall, while SOFI has been a popular WallStreetBets stock and had surged in the Reddit-driven short-squeeze rally, it is among the best fintech names to own considering its strong and diversified business model.

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2. Plug Power (NYSE: PLUG)

Green energy stocks have usually been popular among retail traders. Currently, Plug Power is among the popular WallStreetBets stock. The stock has been in the news after it partnered with Airbus to explore the use of hydrogen in air transportation. The company has been making several partnerships and earlier this year South Korea-based conglomerate SK Group invested over $1.5 billion in the company. The two companies would target the hydrogen market in South Korea.

WallStreetBets has a flair for green energy stocks

WallStreetBets members are bullish on Plug Power stock amid the Airbus partnership. Also, PLUG would be among the beneficiaries of Biden’s infrastructure bill as it has also made an outlay for hydrogen projects. Morgan Stanley also raised the stock’s target price from $35 to $40. The brokerage is bullish on the stock amid its strong balance sheet. It also cited the company’s strategic partnership and the green energy impetus from the Biden administration for its bullish thesis.

Overall, the outlook for green energy stocks looks bullish. PLUG stock has bounced sharply from its 2021 lows but still trades at less than half of its 52-week highs. The company has put the legacy issues related to accounting behind it and now looks set for strong secular growth.

PLUG is among the best WallStreetBets stocks that should be on your radar in October. Wall Street analysts also see an upside in the stock and its median target price of $40 implies an upside of 26%. It has received 18 buys and 7 seven hold ratings from the analysts polled by CNN Business.

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3. Paysafe (NYSE: PSFE)

Paysafe is also among the popular WallStreetBets stock. The payments processing company went public through a SPAC merger and currently trades well below the SPAC IPO price of $10. Meanwhile, PSFE is among the best fundamentally strong stocks on the Reddit group.

PSFE is an attractively valued WallStreetBets stock

While some of the WallStreetBets stocks trade at inflated valuations, PSFE looks reasonably valued. It trades at an NTM (next-12 months) EV-to-EBITDA multiple of just about 14x which looks quite cheap for a fintech company.

During the second-quarter earnings call, Paysafe maintained its 2021 revenue guidance of $1.53-$1.55 billion for the full year 2021 while it expects to post an adjusted EBITDA of $480-$495 million during the year.

The long-term forecast for Paysafe stock also looks positive. The company has a market-leading position in the US iGaming market. As more states legalize sports betting it would bode well for PSFE’s long-term forecast. The fintech industry has a positive outlook over the long term and companies like Paysafe look well placed to capitalize on the opportunity.

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4. Invesco QQQ Trust Series 1 (NYSE: QQQ)

QQQ, which tracks the Nasdaq-100 Index, is a popular ETF on WallStreetBets. The ETF gives you diversified exposure to large-cap US technology companies. The Nasdaq has come off its 2021 highs. However, the outlook for US tech stocks looks bullish.

QQQ is popular ETF on WallStreetBets

While WallStreetBets members usually discuss stocks, QQQ is among the rare ETFs that are popular in the group. If you want to bet on something that’s popular among WallStreetBets members but are wary of investing in individual stocks, QQQ would fit the bill. QQQ is quite liquid and the expense ratio is also low. The ETF is a good low-cost way to invest in a basket of US tech stocks.

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5. Apple (NYSE: AAPL)

Apple is also quite popular on WallStreetBets. The stock has come off its 2021 highs amid concerns over supply chain issues. The global chip shortage has hit the production of iPhones and it could take a toll on the holiday season sales.

WallStreetBets loves Apple but some analysts are bearish

Meanwhile, while many WallStreetBets members are bullish on Apple stock, some of the Wall Street analysts have been turning bearish. Earlier this week, Barclays reiterated Apple stock as a neutral ahead of its upcoming earnings release. “Given that trends are well below normal seasonality based on the combination of the AAPL estimate expectations and builds outlook, we believe it indicates a slightly weaker September quarter for AAPL product revenues,” said Barclays in its note.

Needham analyst Laura Martin also lowered the Apple iPhone 13 shipments forecasts based on channel checks. However, the brokerage has a buy rating and a $170 target price for Apple stock.

Warren Buffett loves Apple

If you are looking at a WallStreetBets stock that even Warren Buffett loves, Apple would fit the bill. Berkshire Hathaway is the second-largest Apple shareholder and Buffett has showered praise on Apple products and management several times.

Apple is also a play on the 5G transition and electric vehicles. The company is rumored to enter the electric vehicle industry. The company’s foray into electric cars would add long term shareholder value. Also, it could be among the biggest challenges for Tesla which currently dominates the US electric car market.

Apple is among those WallStreetBets stock that you can hold for decades. The stock could deliver steady returns over the long term given its strong brand and innovative products.

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