CLOV Stock, WEN Stock Are Latest Meme Stocks To Pop; Canoo, Lordstown, Workhorse Surge

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Clover Health (CLOV) and Wendy’s (WEN) are the latest big-time gainers as the retail-trader frenzy continues. CLOV stock and WEN stock both gapped up, while EV stocks Lordstown (RIDE) and Canoo (GOEV) surged too.




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So-called meme stocks have rallied over the last six months, many of them outlasting their 15 minutes of fame.

AMC Entertainment (AMC) has capitalized on the trend to raise $1.24 billion equity in less than a month. It has plans to sell 25 million more shares in 2022.

GameStop (GME), which was once on the verge of bankruptcy, has a comeback strategy. It’s attempting a pivot to global e-retailer. It brought in new management, teamed up with Microsoft (MS) in a multiyear deal to expand its offerings and modernized its fulfillment facilities.

But while the stocks have notched several new highs and created wealth for many investors, they’re not traditional CAN SLIM stocks. Many of them have weak fundamentals and don’t yet deserve their high valuations.

Clover Health Stock

CLOV stock skyrocketed more than 80% to a record 24.93 intraday on the stock market today, following Monday’s 32% gain. Clover was among the most mentioned companies in StockTwits, a social media platform where traders, investors and entrepreneurs share ideas.

CLOV stock took a breather, but was still sitting on a 60% gain by midday. MarketSmith chart analysis shows Clover Health’s relative strength line bolted up on the stock surge. Its RS Rating is 76 out of a possible 99, while its EPS Rating is 46.

The health insurer is backed by early Facebook (FB) investor Chamath Palihapitiya.

Wendy’s Stock

Wendy’s jumped as much as 19% to hit an all-time high of 27.58. Shares pared back some gains and were up 17% by midday.

The fast-food operator was catapulted into meme-stock status after several mentions on Reddit’s WallStreetBets forum.

Wendy’s relative strength line spiked on Tuesday, but its RS Rating is just 33. WEN stock has an EPS Rating of 90 as it’s posted two quarters of accelerating earnings growth.

The company has focused its efforts on breakfast offerings, which it launched in March 2020, and digital sales.

Wendy’s CEO Todd Penegor said in an earnings call that Wendy’s had the second-largest share of visits of any quick-service burger chain in 2020, citing data from market researcher NPD Group. That means Wendy’s surpassed rival Burger King, but still trails McDonald’s (MCD).

Other meme stocks broadly gained Tuesday. AMC stock was up 5%, but was up as much as 10% intraday. GME stock, the original meme stock, surged 16%. It reports earnings on Wednesday.

Canoo stock leapt 27%, Lordstown stock jumped 12.6%, and Workhorse (WKHS) popped 16.5%. Highly shorted Bed Bath & Beyond (BBBY) was up about 7%.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.

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