The 5 Best Meme Stocks for 2026

Trading in meme stocks is like a pump-and-dump scheme, which is illegal, but to date, regulators have tolerated the meme craze. Retail investors band together and agree to buy a beaten-down stock, often a well-known penny stock with high institutional short interest. It has created massive market volatility and, in some cases, sparked a short squeeze.

What are Meme Stocks?

A meme stock refers to a publicly listed company that is trending among retail traders on social media. Reddit and Telegram channels are among the favorite social media platforms for retail traders to engage in social trading, in-depth discussions, and short-term price speculation.

Why Should You Consider Buying Meme Stocks?

Meme stocks trade at depressed levels for a reason, and traders and investors should try to understand why their share prices are where they are.

Here are some criteria to consider:

• A well-known company that played a role in the life of traders, especially growing up (for example, Krispy Kreme, Avis, and GameStop).
• A high interest by retail traders on social media.
• Follow popular social media channels and try to catch the first wave of buy orders.
• Ensure you place a stop-loss order when you enter your buy order.
• Only use capital that you can afford to lose.

What are the Downsides of Meme Stocks?

Meme stocks are high-risk, short-term gambles, and many institutional traders heavily short them. Traders can lose their capital in a matter of seconds if they enter at the wrong time. Meme stocks experience excessive volatility, characterized by sharp rallies and even sharper selloffs. They often suffer from depressed share prices and are mostly penny stocks trading below $5 per share.

Here is a shortlist of attractive meme stocks:

• Plug Power (PLUG)
• Koss Corporation (KOSS)
• Carvana (CVNA)
• Tilray Brands (TLRY)
• VinFast Auto (VFS)

Update on our previous best meme stocks to buy now:

In our previous installment, I highlighted the upside potential of Rivian Automotive and GameStop.

Rivian Automotive (RIVN) - A long position in RIVN between $12.65 and $13.20

RIVN rallied by more than 40% after its latest earnings report but swiftly plunged before accelerating again. My stop-loss triggered at 17.40, yielding a nearly 35% profit. Still, shares recovered to rally another 30% after my exit.

GameStop (GME) - A long position in GME between $21.54 and $24.20.

GME initially moved up nearly 5% before reversing by more than 15%, then rallied by 20%+ before another reversal. I keep holding this meme stock through the volatility, as the reasons for my bullish call remain intact.

Plug Power Fundamental Analysis

Plug Power (PLUG) develops hydrogen fuel cells and electrolyzer systems that replace conventional batteries. It is also a component of the Russell 2000.

So, why am I bullish on PLUG despite its dreadful 99% collapse?

Plug Power has all the ingredients for a coiled-up meme stock ready to explode. Its operational metrics are bearish across the board, and short interest is above 25%. However, PLUG caters to the expanding green and blue energy revolutions popular among meme investors, and its latest earnings report beat estimates on revenue and EPS. I am bullish about its recent partnership announcements, its promising electrolyzer business, and its latest NASA contract.

The PLUG price-to-earnings (P/E) ratio is unavailable.

The average analyst price target for Plug Power is $2.79. This suggests excellent upside potential with acceptable downside risks.

Plug Power Technical Analysis

• The PLUG D1 chart shows price action between its descending 50.0% and 61.8% Fibonacci Retracement Fan levels.
• It also shows Plug Power inside a horizontal support zone.
• The Bull Bear Power Indicator is bearish with an ascending trendline.

My Call on Plug Power

I am taking a long position in PLUG between $1.82 and $2.05. I am bullish on its 2026 outlook and EPS growth rate, its NASA contract, insider buying, and its involvement in Africa’s hydrogen infrastructure.

• PLUG Entry Level: Between $54.51 and $56.45
• PLUG Take Profit: Between $73.51 and $78.00
• PLUG Stop Loss: Between $46.84 and $49.31
• Risk/Reward Ratio: 2.48

Koss Corporation Fundamental Analysis

Koss Corporation (KOSS) is a headphone manufacturer best known as a sympathy stock during the initial GameStop frenzy.

So, why am I bullish on KOSS following its latest correction?

Koss Corporation swung to net earnings in its latest quarter amid higher-margin sales, and net sales surged by more than 27%. I am bullish about its current quarter, driven by increased sales in the direct-to-consumer (DTC) channel and expanding margins. I am equally bullish about its cost discipline, as operating costs decreased. From a meme perspective, it is ripe to accelerate higher due to its relatively small float and high short interest amid a resurgent meme mania.

The price-to-earnings (P/E) ratio of 5.10 makes KOSS an inexpensive stock. By comparison, the P/E ratio for the S&P 500 is 29.47.

There is no average analyst price target for Koss Corporation, but I expect it to challenge its 2025 high of $8.59 during another meme rally.

Koss Corporation Technical Analysis

• The KOSS D1 chart shows price action challenging its descending 38.2% Fibonacci Retracement Fan level for a sustained breakout.
• It also shows Koss Corporation inside a horizontal support zone.
• The Bull Bear Power Indicator is bearish with an ascending trendline.

My Call on Koss Corporation

I am taking a long position in KOSS between $4.26 and $4.49. Koss Corporation has excellent momentum going into 2025, and I expect a bright quarter amid higher-margin sales.

• KOSS Entry Level: Between $4.26 and $4.49
• KOSS Take Profit: Between $6.39 and $6.93
• KOSS Stop Loss: Between $3.81 and $4.00
• Risk/Reward Ratio: 4.73

Please remember the high-risk nature of trading meme stocks. They are highly volatile, face balance sheet and operational issues, and can wipe out portfolios in a few seconds. Some meme stocks can swing 50% to 100% in short periods without any corporate developments.

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