3 Speculative Stocks That Could Make Your February Unforgettable

Josh Enomoto

February 18, 2024 4 min read

Financial advisors rarely if ever recommend speculative stocks because they don’t want to get sued. Let’s be real here. And I’m not interested in any drama either. These are extremely risky ideas and you should assume a greater probability of losing than winning.

That being said, humans are humans. We say one thing when we really mean another. In this context, speculative stocks represent a siren call. Allow me to use blunt language: it’s legalized gambling. Whether you live in San Francisco, California or Mobile, Alabama, you are freely able to wager on games of chance without fear of government agents busting through your front door.

Of course, you shouldn’t just gamble on speculative stocks on a whim. There are little “tricks” involved to possibly shift the odds in your favor. And you guessed it – we’re going to talk about that right now.

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Hive Digital (HIVE)

HIVE Blockchain Technologies logo over a map of the world. HIVE stock.

Source: karnoff / Shutterstock

For investors interested in cryptocurrencies but don’t want to deal with the sector’s administrative challenges – such as lost passwords or crypto exchanges suddenly failing – then Hive Digital (NASDAQ:HIVE) may be your next best alternative. As a blockchain miner, you receive some correlation to the price of the benchmark virtual currency. At the same time, you have fewer concerns tied to devastating oddities, (again) like losing your password.

Looking ahead, analysts rate HIVE stock a consensus moderate buy with a $6.25 average price target. That’s a lofty estimate which would send shares up over 40% if it holds true. Even better, Stifel Nicolaus anticipates that HIVE could be good for $9. If so, we’re talking about a nearly 102% return over the next 12 months.

What could catalyze such a robust move? Simple – the upcoming halving event for the benchmark crypto. To make a long story short, the reward for mining said digital asset should diminish, effectively slowing the growth of supply in the face of intense demand. If you believe in the concept of buy the rumor, sell the news, HIVE could be an excellent idea for speculative stocks.

Biomea Fusion (BMEA)

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A biotechnology firm, Biomea Fusion (NASDAQ:BMEA) leverages drug design and operation expertise to create novel covalent small molecules to treat serious and life-threatening diseases. Notably, all of the company’s molecules are invented and created in house. As well, the molecules are highly selective, targeted medicines that address key mechanisms of disease progression.

Interestingly, a report published in the National Institutes of Health’s website states that small-molecule covalent inhibitors have offered practical mechanisms for targeting previously “undruggable” proteins. Therefore, it’s quite possible that Biomea’s innovations could hold the key to addressing some of the most vexing diseases.

To be fair, BMEA attracts plenty of bearish attention. In the options flow screener, Biomea has witnessed a significant volume of sold calls and bought puts. As well, it prints a short interest of 51.52% of its float, along with a short interest ratio of nearly 16 days to cover.

However, such intense pessimism could work against the bears. Conspicuously, analysts peg shares a unanimous strong buy with a $58.50 target, implying over 237% upside potential. If you love gambling, BMEA ranks among the top speculative stocks.

Trupanion (TRUP)

a veterinarian holding a small white dog

Source: Shutterstock

A pet insurance provider, Trupanion (NASDAQ:TRUP) offers and administers cat and dog insurance in the U.S., Canada, Australia and Puerto Rico. Per its public profile, the company offers insurance plans that cover hereditary and congenital conditions. Additionally, it provides unlimited annual caps, customizable deductibles and veterinary direct payments.

Fundamentally, the narrative for TRUP stock centers on one core fact: Americans love their furry friends. In 2022, the American Pet Products Association reported that total domestic pet industry expenditures hit $136.8 billion. And last year, the metric reached $143.6 billion. Still, pet-owning households faced significant challenges, being disproportionately impacted as I mentioned in my interview with CGTN America.

Therefore, anything to help protect and care for their animals while providing cost-structure flexibilities would be ideal. This dynamic could benefit TRUP stock. It’s also worth pointing out that Trupanion runs a high short interest of 38.46% of its float with a short interest ratio of 15.69 days to cover.

If TRUP moves against the bears, it could skyrocket due to a short-covering panic. Plus, TRUP features a consensus moderate buy view with a $41.50 average price target. It’s one of the enticing speculative stocks to consider.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.