Best Growth Stocks to Consider Investing in 2021
Growth stocks tend to outperform the overall market because of their future potential.
Looking to start your stock journey in 2021? Are you one step ahead and looking at the best growth stocks to invest in 2021? We’ve got it all covered for you with 7 best growth stocks to invest in 2021.
As 2021 is drawing ever closer after a challenging and difficult year for many of us due to the COVID- 19 pandemic, even the financial market was no exception but it has fared well.
In light of the recent news that a vaccine is now here, the stock market is eagerly ready to get back to the heightening top peak it is always used to year in, year out. Which makes now a good time to be one step ahead and look into which growth stocks are on top and set to be looking strong to buy in 2021.
From the best stocks within the U.K to investing in International stocks that are set to grow and do well in 2021, there are ample amounts of growth stocks to get involved with for the year coming. We will give you all the insight information you need as we go on.
Tip: Getting your research done early into which stocks to invest in as we move forward into a new year, could potentially be the biggest pay off for you!
For all those unanswered questions that are sounding in your mind as to - “What stocks should I invest in 2021? What are the best growth stocks to invest in 2021? How do I find out which stocks are the top to invest in 2021?”
There is no need to question any further.
Top 7 Growth stocks to invest in 2021
Let’s look at 7 growth stocks worth investing in 2021:
1. Amazon (NASDAQ: AMZN)
2. Tesla (NASDAQ: TSLA)
3. Netflix (NASDAQ: NFLX)
4. Microsoft (NASDAQ: MSFT)
5. Pinterest (NYSE: PINS)
6. PayPal ( NASDAQ: PYPL)
7. Disney (NYSE: DIS)
You can buy all of these top stocks, as well as many others, at eToro and pay 0% fees!
New To Stocks? We have covered that answer to your question too!
What is a Growth Stock?
If you are new to stock investing, then no doubt of course you will want to have a break down and know exactly what a growth stock actually is and how growth stocks operate.
A growth stock in simple terms is basically a company within any field that is anticipated to grow at a much faster and greater rate than other stocks.
You will find that growth stocks or companies, for example, Adobe Inc will reinvest their earnings back into the business to make it grow even greater, this is how companies grow on a larger scale.
And that is the clear definition of what a growth stock actually is.
Another prime and good example is a company which everyone knows, Amazon. Now Amazon is one of the top, largest companies in the world and within 2020 Amazon was named one of the top 3 companies for market capitalisation.
Market Capitalisation (market cap): Market capitalisation simply means the total market value of a company’s shares on the market. It is a good way for investors when looking to invest to see a company's size, which will intern help make their choice with the risk implications of investing in its shares.
So, to the eye of the investor this shows that the company in question is a good company to invest in, as it has shown great power and strength within its growth which is what makes it appealing to investors who want to be a part of such growth.
As stated above, any company within a sector can become a growth stock but typically it is the companies who offer something new, different and unique which catches the eye of individuals which intern makes them want to invest and it evolves from there.
But, as you may know, if you are into stock investing or if you are just starting out in stocks and doing your research, be mindful as growth stocks are different to value stocks when looking to invest in.
Value stocks are companies that are trading below what that company is actually really worth, which in effect means that the return can be higher. Value stocks in comparison to growth stocks are deemed a lower- risk and have less volatility connected to them.
If you are an investor or you are a beginner to investing and may not wish to take greater risks at the start, value stocks are going to be better suited for you until the day comes that you are ready for the new adventure into growth stocks.
Growth stocks are ideal for you as an investor who is looking for long term investment within a company that is seeking great growth over years. But, with that having been said like with anything in life the bigger the organisation the greater possibilities of risks that it will take along with it, which is why investing in growth stocks is more risky and volatile compared to value stocks.
When it comes to investing in growth stocks just because they are aimed in the name of growing and becoming bigger, does not necessarily mean you have to invest with great cash amounts. As previously stated the risks and the volatility within growth stocks could potentially see you losing your investment regardless as to what your investment amount is, it can all be lost quickly.
However, having said that if you invest wisely and with the thrill and adrenaline of being a part of such investing is what drives you, then growth stocks are for you!
7 Best Growth Stocks To Invest in 2021
Without further adieu it's time to jump in to see which growth stocks are worth owning in 2021.
1. Amazon (AMZN)
Amazon is one of the top three largest companies in the world and is still expanding for further greatness, which is drawing in investors from all across the globe to invest within this global smash of a company.
Not only does Amazon dominate with their online shopping space, which reportedly made a staggering $163 billion from the period of June 2019 to 2020 from product sales alone. It has followed on and has been reported that Amazon generated a total net sale profit of almost $96.15 billion U.S dollars in the third quarter of 2020, with the most of its earnings being from their online shopping market. With Black Friday and Cyber Monday coming up it is estimated that it is going to skyrocket sales even further along with the effects that COVID-19 has inflicted upon us and making online shopping the only way forward during lockdown periods.
With online shopping setting the way for the future, Amazon has already archived and are still continuing to establish themselves as worthy leaders in the e-commerce industry.
Amazon is literally getting their hands into almost everything. As mentioned above the online shopping market is a dominant within the business, but Amazon is also heavily involved and is reported to be the number one participant in the cloud computing market, which has a huge amount of growth connected within the industry.
Cloud technology is home to most of the technologies we have and which most of us use daily, which included within these tech gadgets are emailing, streaming, social media and much more. With Amazon having a big part of this will surely benefit from industry growth.
For an e-commerce company that first started its journey being an online bookseller launching in 1994, Amazon has since become one of the e-commerce giants in the world.
Amazon is a big potential growth stock to invest in 2021.
Have You Considered Buying Amazon stock?
2. Tesla (NASDAQ: TSLA)
As we move forward in life, everything else evolves and moves forward with us including technology and so too does the automotive industry which is why Telsa comes in as a good growth stock to invest in 2021.
The news is spreading that soon electric cars are going to be the only vehicles sold by 2040, which Telsa run by Chief Executive Elon Musk is having a rapid increase of sales which has been heavily boosted by the fact that the vehicles have zero emissions.
With the sales, comes the income and from the income comes the profit and growth. Having its fifth quarterly report showing profitability, Telsa has had acceptance into S&P 500 due to the company's rapid growth which has blown over the predictions forecasted for the company by analysts.
In the latest quarterly report, it was reported that the automotive company hit $397 million credit sales which have outshone its predictions.
Elon Musk has confirmed plans that he is on route to expanding the Telsa brand with the building of its third manufacturing plant in Germany which is currently underway, and Musk advising that he wants to lead up to creating and building 20 million electric vehicles per year over the next 10 years.
However, with such rapid escalation and growth for more Tesla is up against its competitors who have reputable reputations within the automotive industry and are also seeking for further great success, the likes of Ford Motors (F), Volkswagen Group (VWAGY) and BMW (BMWYY) to name a few. With the undergoing plans of a third manufacturing company on German territory, Tesla is up against some of the worlds best which will see and show how Telsa will compare up against some of the greatest names.
There is no wonder investors are shining on Tesla as it is considered a top growth stock to consider and to keep an eye on as we look to the future.
Would you consider Buying Tesla stock?
3. Netflix (NFLX)
We doubt that anyone will be surprised to see Netflix has made its way onto the list. The streaming entertainment service which has streamed its way into the majority of households across the globe is ready to carry on accelerating through 2021.
Netflix, a company which started in 1977 as a DVD mail-rental service and reportedly which was the reason as for Blockbuster going out of service, has pushed its way into online streaming today. With over 195 million reported subscribers as of its 2020 quarter report, makes the streaming company within the top 3 for the most subscribers subscribed with the U.S having the most subscribers listed within a country with just under 75 million.
With more competitors coming into the mix such as Disney+, Amazon Prime Video, HBO max, Apple TV and more, Netflix still managed to rise on its year- on- year earnings, as from the September quarter report sales climbed up to 23% with Netflix making 18% earnings.
Netflix, are always seeking to push their boundaries, for example, offering their ‘Netflix Original’ adaptations which will help boost its growth offering their uniqueness as competitors will be pushing to move ever closer to similar success.
A prime example Disney+ who are new onto the streaming scene but are a big, well-established brand within its own right with connections to various other industries, is a competitor not to be taken lightly.
Is Netflix Stock Worth Investing in 2021?
Although Netflix may finish below its predication at the end of the year, Netflix is still a growth stock that has a lot of financial potential going into 2021. With its year-to-date figures and it’s a pipeline of Netflix Original adaptations this impressive streaming tycoon is one to buy in 2021.
Ready to Buy Netflix stock?
4. Microsoft (MSFT)
Bill Gates and Paul Allen's giant software creation Microsoft, is a solid footing as a growth stock in 2021.
The masterminded company that brought us the Windows operating service has evolved and expanded into various avenues over years including video games, internet services, server software, PC hardware and more, and is still leading the way.
Due to the widespread coronavirus pandemic, Microsoft has benefited hugely with an increase in sales due to the work-from-home implications being placed across the globe and has seen a rise in various products from Microsoft PC’s to the Windows service enabling people the facility to work and learn from home.
With the above in mind, Microsoft was up by 12% year-on-year figures from its September report and with expectations leading through the festive period, the company is set to increase further with Microsoft expecting to generate $39.95 million in sales by the end of the last quarter.
Fact: In 2019 Microsoft beat Amazon to win a major U.S cloud-computing contract, Joint Enterprise Defense Infrastructure (JEDI) which is worth $10 billion over a 10 year period.
Microsoft's main competitor Apple is following behind, but between the two giants, Microsoft holds the most power and is the leader within the software industry.
With remote working and learning on the rise and set to be made permanent adaptations into the new normal reality, more so than ever before makes Microsoft one clear growth stock to buy in 2021.
Have you considered buying Microsoft stock?
5. Pinterest (PINS)
In a world where social media flushes with all generations, Pinterest (PINS) is one social media platform that is still a strong contender.
What is Pinterest?
For those who may not be aware, Pinterest is a social media platform that has designed its way into the modern reality. You can create your own visual mood boards on any designs you wish to help inspire you with endless ideas and projects.
Pinterest also enables you to buy products through the media site and has recently launched new features that enable you to shop directly the latest pins (items displayed in the image) along with advising on their in-stock availability, and lastly, you can shop various retailers for your chosen product.
Unlike other social media platforms, Pinterest is more on the creative side as opposed to other platforms that start with that intention but can lead elsewhere i.e (interactive), which is what makes the social platform unique and an investment to keep hold of in the long run.
Pinterest's revenue actually increased by a good 58.2% in the third quarter which ended in September 2020, which gave the figure $442.62 million year-over-year, Not bad for a social media platform, right?
As we go into the final month of the year, which is always an active time of the year for all of us for many reasons, it is predicted by analysts that the company’s revenue is set to have a big increase of potentially up to 60.5%.
The social media platform is one of the 2021 growth stocks to be a part of.
6. PayPal (PYPL)
PayPal is the world's largest digital platform that provides money transfer services.
There couldn't be a better introduction for this fast-growing company which is surpassing many barriers.
PYPL has hit the ground running, so to speak over the past 10 years, with its huge earnings and its impressive 99 Earnings Per Share Rating (EPS) is continuing showing a strong sales growth. This year predictions by analysts which have been cast are aiming for a 28% growth year-on-year, but with the world becoming more digital by the day it doesn’t seem that impossible for the giant company, right?
Along with this year's predictions, PayPal also has another high forecast for next year, which is why PYPL makes the list of one of the top 7 to invest in 2021.
Competitors such as Apple Pay (AAPL), Alphabet (GOOGL)’s and Amazon Payments (AMZN)’s and more are all trailing behind the strength that PayPal is showing.
The PayPal earnings reported it had 361 million active accounts which were announced within the last quarterly report.
As the evolution of the digital world continues to evolve this is why buying in PayPal in 2021 is one not to be missed.
Ready to buy PayPal stock?
7. Disney (DIS)
One day Disney’s dreams all came true, and are still coming true evolving into streaming with Disney+ which has turned out to be a saviour for the organisation.
Showcasing the classic originals such as Snow White, Beauty and The Beast and many more. The entertainment powerhouse has also partnered with other big names including Pixar, Marvel and National Geographic to entice more subscribers.
Disney which has Disney theme parks in Paris, Hong Kong, Shanghai, Tokyo, California and the most notorious Florida, have sadly had to be close their doors and for some more recently started reopening but having strict limitations due to the coronavirus pandemic, which is a big loss for the Disney organization. Not to mention on top of the theme parks, a halt in up and coming film productions, cruise hold ups and closures in retail stores has hit Disney hard.
At least Disney has grown one way this year with Disney+.
This year has shown many stock levels drop, including for Disney. But for Disney+ it is still growing and has actually grown a lot since March 2020 with 73.7 million subscribers adding to the network by the end the September quarter.
Inevitably when the world starts to operate a little normally, Disney will take no time for the powerhouse to get back to the top.
Disney has recently also announced that it is going through a major reconstruction which saw the giant brands shares increase by 3%.
Which makes going into 2021 is the most opportune time to get on board.
Have you considered buying Disney stock?
How To Invest In the Best Growth Stocks?
Now we have covered seven of the best growth stocks to invest in for 2021, it's wise to bear in mind that there are also plenty more growth stocks to indulge in.
For a list of further stocks that are set to take 2021 by storm read 15 Stocks To Explode In 2021.
If you feel confident that you are ready to start investing in the top growth stocks and you are now searching for the ideal broker, check out eToro.
eToro is a trusted multi-platform that has become incredibly popular with investors around the globe and even seeing the rise in U.S investors coming on board. eToro has the top and best growth stocks ready at your leisure to start your journey into stock investing, along with much more on hand for you.
If you are a beginner just starting out in stocks or if you are an experienced investor, you can use this user-friendly platform to learn, compare trading prices and start trading in which avenue you wish.
A gentle reminder to always remember is that growth stock prices can change within no time at all. If a company's supply and demand is high the share price will change just as rapidly.
And the last word of advice is to remember that nothing is guaranteed with investing in stocks know matter if it's growth or value stocks you are investing in.
No matter your chosen route, it is always worth diving into plenty of research and looking at creating a risk management strategy so you are always planning ahead for plan B.
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The Bottom Line
Key points to take away from top growth stocks to invest in 2021:
- A growth stock is a share in a company that is anticipated to grow quicker than the average growth.
- The top seven growth stocks are ideal growth stocks to watch in 2021.
- Amazon and Microsoft stocks top our list of best growth stocks to invest in 2021.
- Aside from the seven top players mentioned above, please bear in mind there are many more growth stocks you can invest in nationally and internationally.
- If you have not heard of a certain company that has been named as a company to watch, always do our own research before investing in straight away. Remember, new companies are pushing and making their way to the top each day.
- You can buy into any growth stocks you wish at eToro.
We hope our list of the best 7 growth stocks to invest in 2021 has been helpful.
Disclaimer: Stocks are highly volatile. Your capital is at risk. You should carefully consider your investment objectives and risk appetite before making a decision to buy stocks. Most importantly, do not invest money you cannot afford to lose.