Best WallStreetBets Stocks to Buy December Week 4 Roundup

Life has come a full circle for Reddit group WallStreetBets in 2021. The group rose to fame in the first quarter of the year and became famous for those epic short squeezes. Wall Street pros watched in disbelief as the group collectively took several stocks to astronomical highs.

As 2021 draws to a close, WallStreetBets looks like a pale shadow of what it was at its peak. While some of the meme stocks like GameStop and AMC Entertainment are still up significantly for the year, many others are languishing near their 52-week lows despite the markets hitting a new closing high. That said, some of the top trending names on WallStreetBets still look like good buys. Here are five such stocks that you can consider in December 2021.

1. Tesla (NYSE: TSLA)

Tesla has long been a WallStreetBets favorite. The stock has been quite volatile in 2021 but has looked strong over the last week. It is up almost 51% for the year and has reclaimed its $1 trillion market cap. Wall Street analysts have also been turning bullish on the stock. Earlier this month, analyst Adam Jonas of Morgan Stanley reiterated his overweight rating on Tesla stock and called it a leader in the EV industry. Jonas is also bullish on Rivian but bearish on Lucid Motors, which is led by former Tesla employee Peter Rawlinson.

Adam Jonas is bullish on Tesla

Jonas likes Tesla stock for its leadership in battery technology and autonomous driving. He also sees the company’s high-margin software business as a key driver. Tesla’s CEO Elon Musk also believes that the software part of the business will add real value for investors in the long term. The company has gradually increased the price tag for its FSD (full-self driving) to $10,000 and expects it to rise to $100,000 over the long term.

The company is expected to release its delivery report for the current quarter early next month and several brokerages including Baird and Credit Suisse expect a bumper report from the EV giant. While some of the brokerages are still quite bearish on Tesla, and UBS expects the EV industry growth rate to slow down, the company’s execution capabilities have surprised even the most pessimistic of analysts.

WallStreetBets loves Tesla but Wall Street is divided

UBS increased the stock’s target price from $275 to $1,000 while reiterating its neutral rating. It said “Tesla is likely to continue beating consensus expectations also in 2022 in terms of top line growth and margins, in a global EV market that keeps accelerating rapidly. Tesla’s structurally better access to chips and batteries through vertical integration is a key differentiator vs. most competitors and should help to cement Tesla’s market leadership with ~20% global BEV share, in combination with industry-leading profitability.”

Most WallStreetBets members are bullish on Tesla stock even as the opinion on Wall Street is quite divided. That said, if you are looking to buy a quality WallStreetBets stock, Tesla is one name that you can consider.

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2. BlackBerry (NYSE: BB)

BlackBerry stock was among the set of meme stocks that surged on pumping from WallStreetBets. The stock is down sharply from the highs. The stock could continue to trade weak in the near term amid the broader market volatility and its rich valuations. However, if it corrects from these levels it should start to appear attractive.

BlackBerry was once a WallStreetBets favorite

While BB stock is still popular on WallStreetBets, it is not as popular as it was in the first quarter. Earlier this week, BlackBerry released its fiscal third-quarter 2022 earnings. It generated revenues of $184 million in the quarter which was below the $218 million that it had generated in the corresponding quarter last year. Looking at the segment-wise performance, it reported cybersecurity revenues of $128 million while its IoT revenues were $43 million. The company generated revenues of $13 million from licensing and other services.

BlackBerry managed to reach a breakeven level on the adjusted EPS in the quarter after the last few quarters of losses. However, its guidance for the fiscal fourth quarter looked soft. BlackBerry is benefiting from the strong secular headwinds in cybersecurity, IoT, and 5G. BB today is a far different company than it was a decade back. The company has been transforming its business which would add long-term shareholder value.

However, for now, wait for the stock to come down a bit before taking a new position in this WallStreetBets stock.

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3. Amazon (NYSE: AMZN)

Amazon stock has been another WallStreetBets favorite for quite some time now. Amazon has however disappointed not only WallStreetBets members but also Wall Street analysts, most of whom are bullish on the stock. Amazon is the worst-performing FAANG stock of 2021 but several brokerages have added it to their 2022 focus list, expecting a bounce-back in the beaten-down stock. Amazon’s valuations also seem quite reasonable and it looks like a good WallStreetBets stock to buy in December 2021.

Both WallStreetBets and Wall Street love Amazon stock

It’s not often that we find both WallStreetBets and Wall Street analysts showering their love on the same stock. Amazon is among those rare names where most Wall Street analysts hold a bullish opinion on a stock that WallStreetBets members too love.

If you are looking to play the long-term secular themes of cloud and e-commerce, Amazon is one WallStreetBets stock that you can consider.

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4. SoFi (NYSE: SOFI)

Fintech giant SoFi is another popular WallStreetBets stock that you can consider in 2021. The stock has tumbled from its highs and now looks like a good buy for 2022 especially ahead of its impending bank charter that could lead to a structural improvement in the company’s earnings as well as valuation multiples.

SoFi is a popular fintech stock on WallStreetBets

SoFi is growing at a fast pace and added 377,000 new members in the third quarter which was the second-highest quarterly member growth in its history. While a lot of growth names have been witnessing a slowdown, SoFi’s growth outlook has been largely intact.

One of the key USP of SoFi’s platform is the massive cross-sell opportunities. During the third quarter, SoFi witnessed an all-time high cross-buying of products by existing customers. It said that SoFi Money, SoFi Invest, and SoFi Credit Card were responsible for 73% of cross-buying opportunities.

SoFi expects its revenues to rise to $3.67 billion by 2025 and is forecasting EBITDA margins at 32% that year. The company has a current market cap of $12.18 billion which implies a 2025 price-to-sales multiple of just about 3.3x. The valuations look reasonable and SoFi looks among the best WallStreetBets stocks that you can hold for the long term.

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5. Pfizer (NYSE: PFE)

Pfizer is also among the popular WallStreetBets stocks. Initial reports suggest that Pfizer and Moderna’s COVID-19 vaccines are effective against the omicron variant with a booster dose. Pfizer expects COVID-19 to become an endemic which would mean it would continue to reap revenues from the vaccine. Apart from the COVID-19 vaccine, the company is also developing several other drugs which would add shareholder value.

The next key driver for the stock would be the expected approval of its COVID-19 pill Paxlovid. Also, booster shots are expected to get an impetus across the world with Israel even going for a fourth booster shot.

Pfizer is among the popular healthcare stocks to buy. WallStreetBets members also love this stock and analysts have also been taking a bullish view of late. The stock has reasonable valuations with a strong dividend yield which is almost twice that of the S&P 500. Overall, PFE is among the best WallStreetBets stocks that you can buy for 2022.

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