These 2 Meme Stocks Have Legitimate Long-Term Upside

These meme stocks surged only to drop back, and yet there could still be potential in the future for another rebound in share price.

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Meme stocks became a huge hit during the pandemic, when growth stocks surged and everyone was seeking out the next big thing. Retail investors bought these stocks en masse, knowing full well they would most likely drop in the near term, creating a short squeeze.

While some of these paid off well, others suffered from huge losses. If you got in late on the short squeeze, you were squeezed out of large returns. Which is why long-term holding is how Motley Fool investors can make the best gains.

Yet, this doesn’t mean there are meme stocks out there investors should ignore altogether. In fact, there are two that offer superb long-term opportunities.

BlackBerry

BlackBerry (TSX:BB) stock went through its own short squeeze during the growth stock phase of 2021. The WallStreetBets subreddit channel triggered a large surge of about 115% in the early days of 2021. However, this almost immediately fell back by 42% before February hit. While there was another smaller surge afterwards, shares continued to drop. As of writing, BlackBerry stock is down 67% from those peak prices.

Yet does this mean that BlackBerry stock isn’t a good investment for long-term holders? Absolutely not. In fact, the stock should do quite well over time, especially if you’re picking it up at these undervalued levels.

The company brought in more attention in recent years as it moved away from its smartphones completely. Yet, the same security offered by BlackBerry phones is now being offered on a wider sale through cybersecurity offerings.

Its QNX system, in particular, has become a go-to software for long-term results. The core software can be easily customized for companies. It has now been embedded in over 235 million vehicles, as of the company’s latest earnings report.

So with debt down, revenue up, and the future looking bright, BlackBerry stock looks like a valuable meme stock for investors to consider once more.

Cameco stock

Another meme stock that fell only to drop once more is Cameco (TSX:CCO). A uranium stock craze flooded the world as meme stocks in the sector surged in share price. Cameco stock, however, saw the largest increase as the world’s largest publicly traded uranium company.

The thing about Cameco stock, however, is that while other meme stocks in the uranium sector fell, it kept climbing. In fact, it has now doubled in share price since those days of meme trading. Yet, this is for good reason.

The world is shifting to renewable resources, and Cameco’s supply of uranium will certainly be part of that. Reactors already create about 20% of the United States’ energy, as of writing, and that’s only set to increase. With more reactors being built around the world, and sanctions on Russian uranium, it’s clear that Cameco stock has a solid future.

Especially for long-term traders. Right now, Cameco stock looks expensive, true. It trades at an insanely high 221 times earnings, as of writing. However, investors over the next decade should still see substantial returns as more deals are made with the corporation.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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