With bullish sentiment steadily creeping back into the market, speculators may be eyeballing undervalued meme stocks to buy. Just to set the tone, Augsburg University defines this investment category as any security “that’s seen its price skyrocket due to excessive trading volume from retail investors.” In particular, social media forums fuel this endeavor.

The Wall Street Journal noted that meme traders have returned (somewhat) to the market. The usual suspects have enjoyed significant gains, though the news outlet warns against betting on a frenzied resurgence. Therefore, undervalued meme stocks to buy may offer a viable balance for speculators that absolutely must speculate.

For those that want to get the best deal on some of the most popular trades, here are three undervalued meme stocks to buy before the next surge.

Best Buy (BBY)

On paper, big-box retailer Best Buy (NYSE:BBY) appears a solid bet for undervalued meme stocks to buy. For one thing, over the 24 hours from this writing, Best Buy appeared six times on investment-related social media platforms. More importantly, BBY stock is fundamentally undervalued.

One metric to consider is the forward price-earnings ratio of 13.2x, which is under the industry median of 15.6. Additionally, its forward rate of return is 25%, significantly higher than the retail sector’s median of 12.2%.

Nevertheless, Best Buy isn’t an easy buy because of its guidance downgrade. While Yahoo Finance did an excellent job breaking down the details, a key lowlight is that the retailer anticipates its second-quarter same-store sales to slip 13%. This compares unfavorably to prior guidance calling for an 8% decrease.

With that in mind, is BBY still one of the undervalued meme stocks to buy? For gamblers, perhaps yes. That’s because other retailers are also downgrading their guidance, meaning that the negativity could be priced in.

Sandstorm Gold (SAND)

A precious metals royalty firm, Sandstorm Gold (NYSE:SAND) theoretically should command more excitement than it has so far. With inflation soaring to multi-decade highs, Sandstorm’s ties with gold should help. After all, gold supposedly represents the ultimate safe haven. Unfortunately, the narrative hasn’t panned out so well.

Nevertheless, the inflation-hedging thesis for SAND remains intact, making it one of the undervalued meme stocks to buy for gamblers. True, the latest consumer price index for July dipped to 8.5% from 9.1% a month prior. But we’re only talking about a single month-to-month change. More significantly, the jobs report delivered hotter-than-anticipated results. However, in the Federal Reserve’s mind, good news is bad news.

Generally, more jobs equate to more money chasing after fewer goods – a pleasant way of saying higher inflation. This dynamic will incentivize the Fed to act aggressively.

Even more convincing, Sandstorm itself delivered a record attributable gold equivalent ounces of 19,276 ounces in Q2. As well, it posted record revenue of $36 million and record net income of $39.7 million. If that wasn’t enough, Sandstorm’s earnings yield is 4.15%, whereas the industry median is in the red by 7.5%.

Tilray (TLRY)

While the cannabis industry has always garnered intense interest among speculators, the sector has largely disappointed. Therefore, I understand the hesitation associated with Tilray (NASDAQ:TLRY) ranking among the undervalued meme stocks to buy. Still, if you can handle the heat, some upside potential may exist.

Early in August, Tilray spiked up on broader positive developments. For instance, Switzerland recently legalized medical marijuana, potentially opening future partnership opportunities. Specifically for Tilray, the company posted surprisingly robust sales results for its fiscal year 2022.

Recently, Tilray CEO Irwin Simon weighed in on the U.S. federal legalization debate. “The U.S. is a $100 billion opportunity in cannabis,” Simon told Yahoo Finance Live. “If you look at cannabis today in the U.S., 93% of Americans want medical cannabis legalized and about 63%, 65% want adult use.”

Adding to the intrigue, TLRY on paper is an undervalued investment idea. In particular, its price-book ratio is 0.51, priced more attractively than the industry median of 1.9. Nevertheless, investors need to be careful as the cannabis sector has a reputation for volatility.

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.