Financial advisors practically steer clear of speculative stocks due to legal ramifications. Let’s face it. I’m not here for drama, but to enlighten. These stocks are risky business, with a higher chance of losing than winning.
But let’s be honest: speculative stocks have an allure. They’re akin to legalized gambling. Whether you’re in San Francisco, California, or Mobile, Alabama, you can dabble in chance, free from government intrusion.
However, venturing into speculative stocks demands more than whimsy. There are nuances to possibly tip the odds in your favor. And that’s precisely what we’ll delve into right now.
Hive Digital (HIVE)
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If you’re keen on cryptocurrencies but wish to sidestep the sector’s logistical challenges like lost passwords or crypto exchange meltdowns, Hive Digital (NASDAQ:HIVE) might be the alternate avenue you seek. As a blockchain miner, your fortunes align somewhat with the benchmark digital currency’s price while steering clear of catastrophic mishaps.
Looking forward, analysts hold a consensus moderate buy rating for HIVE stock, with an average price target of $6.25. That’s a bullish estimate, which could propel shares up over 40% if materialized. Moreover, Stifel Nicolaus forecasts a potential $9 valuation for HIVE. If realized, investors could enjoy nearly 102% returns within a year.
So, what might fuel such a robust surge? Simply put, the forthcoming halving event for the benchmark cryptocurrency. Long story short, the reward for mining this digital asset should diminish, curbing supply growth amidst fervent demand. If you believe in the adage “buy the rumor, sell the news,” HIVE could be an enticing speculative play.
Biomea Fusion (BMEA)
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As a biotechnology company, Biomea Fusion (NASDAQ:BMEA) harnesses drug design and operational expertise to fabricate original covalent small molecules for treating severe and life-threatening ailments. Remarkably, all its molecules are homegrown, highly selective, targeted medicines addressing critical disease mechanisms.
According to a National Institutes of Health publication, small-molecule covalent inhibitors have introduced practical methods for targeting hitherto “undruggable” proteins. Hence, Biomea’s innovations could potentially crack some of the most challenging diseases.
Admittedly, BMEA garners substantial bearish attention. The options flow screener reveals a substantial volume of sold calls and bought puts for Biomea. Additionally, it registers a short interest of 51.52% of its float, with an almost 16 days-to-cover short interest ratio.
Nonetheless, such profound pessimism could backfire on the bears. Evidently, analysts unanimously rate its shares a strong buy with a $58.50 target, signaling a potential over 237% upside. If you fancy a gamble, BMEA ranks among the tantalizing speculative stocks.
Trupanion (TRUP)
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A provider of pet insurance, Trupanion (NASDAQ:TRUP) offers and administers cat and dog insurance in the U.S., Canada, Australia, and Puerto Rico. The company’s insurance plans cover hereditary and congenital conditions, with unlimited annual caps, customizable deductibles, and veterinary direct payments.
Fundamentally, the tale of TRUP stock revolves around one fundamental truth: Americans adore their furry companions. In 2022, the American Pet Products Association revealed that total domestic pet industry spending hit $136.8 billion. And in the preceding year, that number stood at $143.6 billion. However, pet-owning households grappled with considerable hardships, an issue I highlighted in my interview with CGTN America.
Therefore, anything that safeguards and nurtures their pets while offering flexible cost structures would be a boon. This scenario could bode well for TRUP stock. Notably, Trupanion contends with a high short interest, constituting 38.46% of its float and a short interest ratio of 15.69 days to cover.
If TRUP defies the bears, it could soar due to a short-covering frenzy. Besides, TRUP boasts a consensus moderate buy rating with a $41.50 average price target. It’s one of the stimulating speculative stocks to ponder.
On the publication date, Josh Enomoto had no direct or indirect positions in the securities mentioned in this article. The opinions are solely those of the author, subject to InvestorPlace.com Publishing Guidelines.
