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Wall Street Favorites: 3 Blockchain Stocks With Strong Buy Ratings for May 2024
Blockchain stocks to buy are attracting investor attention as the technology continues to disrupt various industries. We know names like Bitcoin (BTC-USD) AND Ethereum (ETH-USD) often steal the limelight. However, hidden gems in the blockchain space offer significant upside potential, especially in the current market environment.
Three blockchain stocks with strong buy ratings are ones every investor should consider. These companies are all established players in the blockchain and cryptocurrency space. Furthermore, they are expected to increase in value significantly in the future.
These blockchain stocks with strong buy ratings have the potential to rise even higher than major cryptocurrencies. The reason is that blockchain stocks often show higher correlation and Beta than Bitcoin itself. This allows them to experience more substantial price movements, both up and down.
So let’s look at three blockchain stocks that investors might consider adding to their portfolios in May this year.
Riot Control Blockchain (RIOT)
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Anti-riot blockchain (NASDAQ:REVOLT) specializes in Bitcoin mining and is known for its aggressive expansion plans in this area. The company aims to significantly increase its hash rate capacity by the end of 2024, which positions it well for potential growth.
Riot aims to achieve a auto-mining hash rate capability of 31 EH/s, focusing on developments at their Corsicana facility. This facility, once fully operational, is set to become one of the largest known Bitcoin mining facilities globally, with a total capacity target of 1 GW.
Furthermore, Riot has Guaranteed options for purchasing an additional one 66,560 machines. And it has the potential to extend this to up to 265,000 more miners. This could eventually increase their total mining capacity to over 100 EH/s.
Finally, nine analysts give Riot Blockchain an average 12-month price target of $17.29, implying an upside of 87.93% from the current share price of $9.50.
Mastercard (MA)
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MasterCard (NYSE:BUT) has incorporated blockchain into various financial services. These include Cryptocredentials, to improve security and trust in cryptocurrency transactions.
Besides, Mastercard is pushing forward with its blockchain capabilities through its Start Path Digital Assets program. This plan helps startups that are innovating with digital assets, cryptocurrencies, and blockchain technology.
Moreover, analysts predict it MA stocks will outperform the market, maintaining its competitive advantage over fintech challengers. Twenty-six analysts’ ratings have given it a strong buy consensus. And this carries an implied upside of 8.69% at the time of writing.
Therefore, MA could be one of those blockchain stocks to buy for those who like to invest in less speculative stocks. It has a very strong brand and position in the market and its capital appreciation has been significant. Notably, its share price has increased by 80.95% over the last five years and analyst forecasts could see it rise considerably in the future.
Applied Digital Society (APLD)
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Applied digital society (NASDAQ:APLD), formerly known as Applied Blockchain, provides essential digital infrastructure and operates data centers.
APLD has the strongest consensus from analysts on this list. Eight analysts give Applied Digital Corporation an average 12-month price target of $10.50, implying an upside of 217.22% from the current share price of $3.48.
For fiscal year 2024, APLD predicted its total revenue be between $385 million and $405 million. Additionally, adjusted EBITDA is expected to be between $195 million and $205 million. These figures have been reaffirmed recently.
The company has been actively improving its infrastructure to support high-performance computing (HPC) and other digital services across North America. This includes significant investments in data center capabilities.
Therefore, APLD may be one of those blockchain stocks that investors should consider given the strength of analysts’ beliefs regarding the company.
As of the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Opinions expressed are those of the writer, subject to InvestorPlace.com Guidelines for publication.
Matthew began writing about financial markets during the cryptocurrency boom of 2017 and has also been a team member at several fintech startups. He then began writing about Australian and US stocks for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and New Scientist magazine, among others.