Best WallStreetBets Stocks to Buy March Week 3 Roundup

US stock markets rebounded last week. The S&P 500 gained 6.1% while the tech-heavy Nasdaq, which underperformed the S&P 500 in 2021, gained 8.1%. Some of the WallStreetBets stocks also spiked as US stock markets had their best week since 2020.

Some of the stocks on WallStreetBets look attractive. What are the five best WallStreetBets stocks that you can buy now?

1. Nvidia (NYSE: NVDA)

Nvidia is among the top trending names on WallStreetBets ahead of its annual GTC conference and the analyst day next week. The stock has bounced back from its 2022 lows and WallStreetBets members are bullish on the stock ahead of the key event.

Wall Street or WallStreetBets: Who is right on Nvidia?

Meanwhile, Wall Street analysts are mixed on Nvidia stock ahead of the event. While Deutsche Bank analyst Ross Seymore expects Nvidia to provide a “characteristically positive message” he does not see it being a significant driver of the stock price.

Citi analysts Atif Malik and Amanda Scarnati expect several key announcements at the event which they believe could drive the stock higher.

Credit Suisse is also bullish on NVDA stock ahead of the analyst day. It reiterated its outperform rating and said “YTD NVDA is down 19% vrs. SOX of –17% and SPX of –9% – against the backdrop of the current Semi cycle and a volatile geo-political environment, high multiple stocks have been negatively impacted by a market grappling with higher rates.”

Nvidia is a play on multiple themes ranging from blockchain, 5G, autonomous driving, and the metaverse. JPMorgan, which is bullish on NVDA stock sees data centers/computing, PC gaming, and autonomous driving the company’s growth.

Nvidia could see strong growth amid the continued momentum in gaming. Metaverse could be another long-term driver for the stock where the company has come up with its Omniverse.

Nvidia is currently among the best WallStreetBets stocks that you can buy, both from a short-term as well as a long-term perspective.

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2. Didi (NYSE: DIDI)

Chinese ride-hailing company Didi is also among the top trending names on WallStreetBets. The stock more than doubled from its all-time lows last week after positive commentary from China. The country is now looking to reverse course and end the tech crackdown. The state media also reported that China would now support the overseas listing of Chinese companies.

WallStreetBets like Didi despite the surge

Most WallStreetBets members are bullish on Didi stock despite the surge. Notably, despite the rise, Didi’s valuation is a fraction of what it was at its peak. Even now, the company’s valuation is below the pre-IPO private market valuation. Didi trades at a significant discount to global peers. While the valuation discount is not surprising given the structural deterioration in the valuations of Chinese companies, the stock was looking ridiculously cheap with an NTM EV-to-sales multiple of around 0.1x. Despite the recent surge, the multiple is around 0.4x now.

While there is still ambiguity over Didi’s listing status, it looks worth the risk at these prices. WallStreetBets members also find the stock attractive despite the multiple headwinds.

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3. Alibaba (NYSE: BABA)

Alibaba stock is also among the top trending names on WallStreetBets. The stock also bounced last week as Chinese stocks recouped losses. Meanwhile, despite the rise, BABA still trades well below the all-time highs that it had hit in 2020. With China now looking to reverse course on the tech crackdown, BABA stock should see better days ahead.

WallStreetBets finds BABA stock undervalued

WallStreetBets members find BABA stock undervalued. Several fund managers also echo similar views and even Charlie Munger has been loading up on BABA stock. Daniel O’Keefe, a managing director and portfolio manager at Artisan Partners, believes that BABA is possibly the cheapest non-Russian company in the world.

He said, “Alibaba trades for a single-digit multiple of free cash flow and three or four times EBIT [earnings before interest and taxes]. So, you know, it’s the largest e-commerce company in the world that is levered to digitization and the expansion of the increasing wealth of the consumer and middle class in China.”

Despite the rise last week, BABA stock trades at an NTM PE multiple of around 12.5x. A possible listing of Ant Financial, where Alibaba holds a third of the stake, could be another key driver for the stock. While Ant Financial’s valuations have plummeted amid the crackdown, they could rise significantly if China eases the rules.

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4. SoFi (NYSE: SOFI)

SoFi stock also bounced back from the lows last week. However, it still trades below the SPAC IPO price of $10. WallStreetBets members are bullish on SoFi stock at these price levels. However, Morgan Stanley analyst Betsy Graseck is not convinced and downgraded the stock from overweight to equal weight and slashed the target price from $18 to $10. Graseck believes that the Biden administration would increase the moratorium on student loan repayments yet again. SoFi’s student loan refinancing business is negatively impacted due to the moratorium.

WallStreetBets has a flair for Palihapitiya stocks

WallStreetBets members have a flair for companies that have gone public through a merger with one of the Palihapitiya SPACs. Apart from SOFI, Clover Health and Virgin Galactic have also featured in WallStreetBets’ “hall of fame.”

Meanwhile, SoFi looks like a good fintech stock to buy at these prices. The company’s foray into banking would help it structurally lower its expenses and help support profitability. The company’s growth outlook looks quite strong even as some of the other fintech companies are witnessing a growth slowdown.

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5. Invesco QQQ Trust Series I (NYSE: QQQ)

QQQ, which tracks the Nasdaq-100 Index, has been a popular ETF on WallStreetBets for quite some time now. The ETF gives you diversified exposure to large-cap US technology companies.

QQQ has been trending on WallStreetBets for quite some time

Of late, ETFs have been quite popular on WallStreetBets. 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.

ETFs can be a good investing strategy, especially for investors who lack the time or analytical skills to pick individual stocks. Especially under the current market environment, where we have heightened volatility, ETFs could turn out to be a better bet.

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