3 Reddit Stocks to Buy in May

• These trending Reddit stocks have considerable growth catalysts in motion, offering healthy upside potential in May and beyond.
• AdvisorShares Pure U.S. Cannabis ETF (MSOS): This leading cannabis ETF offers exposure to the crème de la crème of the U.S. cannabis sector.
• Mullen Automotive (MULN): A fairly priced EV company with plenty of growth catalysts.
• Citius Pharmaceuticals (CTXR): The speculative biotech stock could offer strong gains down the line.

Reddit-induced trading was perhaps the biggest stock market story in 2021. During the height of the pandemic last year, novice investors turned to the platform and made it one of the most powerful investing communities globally. These so-called Reddit stocks continue to be popular with traders and remain on their radars for the foreseeable future.

Reddit stocks or meme stocks usually belong to market underdogs with high short ratios. Redditors take advantage of these stocks and initiate a short squeeze to take their values to new heights. Due to the massive volatility created by these stocks, investors have had to take notice.

A handful of stocks became part of the trend early last year, but we’ve seen those that might not necessarily fit the bill also becoming part of the retail trading frenzy. With that being said, let’s look at three Reddit stocks that offer healthy upside potential.

Reddit Stocks: AdvisorShares Pure U.S. Cannabis ETF (MSOS)

AdvisorShares Pure U.S. Cannabis ETF (NYSEARCA:MSOS) is one of the leading cannabis exchange-traded funds (ETF). One of the best investing strategies is to hold shares of ETFs, which offer exposure to a broad mix of shares in a particular sector. MSOS focuses on U.S. multi-state operators, proven to be more resilient than Canadian cannabis businesses.

The U.S. cannabis market isn’t legal yet, but it’s only a matter of time before it is. Legalization support is reaching record levels, and if it doesn’t occur during the current Democratic regime, it is likely to come under the next administration. Legalization will lift several barriers for the sector, so reports point to an acceleration in industry growth rates within the next several years.

Mullen Automotive (MULN)

Mullen Automotive (NASDAQ:MULN) is an up-and-coming EV startup that has steadily expanded its business operations through mergers and acquisitions. Of late, MULN stock has been gaining momentum after reports suggest that it will soon commence production of its electric crossover vehicle, the Mullen Five. It has successfully raised a sizeable amount of debt to finance the Mullen Five’s development. Hence, its assets have risen substantially in recent months.

The pre-revenue EV enterprise also understands the importance of solid-state batteries. The company recently disclosed testing its solid-state polymer cells, which come with a driving range of over 600 miles. Moreover, an 18-minute fast charge can yield a range of roughly 300 miles.

The company’s first EV may become available to users by 2024. If the company nails its objectives and avoids supply chain hiccups that usually impact EV startups, it could emerge as a contender in the space. Nevertheless, the risks remain with MULN stock, and it presents itself as a more speculative option at this time.

Reddit Stocks: Citius Pharmaceuticals (CTXR)

Citius Pharmaceuticals (NASDAQ:CTXR) is a small biotech with no revenues or profits but hopes to move the needle with its attractive drug pipeline. Investing in the company is a gamble, but 2022 could be the turning point for the business. If it can get its budding roster of drugs on the market, its stock could grow at a breathtaking pace. Hence, cash-strapped investors will want to take a bet on the stock.

Citius is focused on developing and commercializing an impressive lineup of critical care products, including anti-infectives in oncology, stem cell therapy, cancer and other conditions. Two out of its five candidates are already in the advanced trial stages, and it has enough cash to take these past the finish line.

The stock is thinly traded but has been popular on Reddit and other social media platforms. Its management owns a major chunk of the company shares; therefore, a liquidity risk remains. Moreover, there are also regulatory and commercial risks that weigh down CTXR stock. Nevertheless, there is a massive market for its products, especially its anti-lock solution, making it a high-risk-high-reward play.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Muslim Farooque 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.