Top stock picks for 2021
Looking to enter the stock trading market within 2021? Are you looking to find the best stocks for you to buy for 2021?
Take a look at 7 of the best stocks that are fantastic additions to be a part of this year.
7 stock picks for 2021
New adventure into stock trading?
Then you have come to the right place as we have the 7 top stock picks for you to invest in for 2021 who are dazzling additions for you to keep a hold of for the long-run.
From picking up from the turbulent year of 2020 to moving forward into the new reality, here are the top-performing stocks that you should look to own in 2021 and beyond.
Top 7 Stock Picks for 2021:
5. Etsy (ETSY)
7. Harvest Health & Recreation Inc (HARV)
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What Are The Top 7 Stock Picks for 2021?
The list of 7 of the best stocks on the market today that could prove smart additions to your portfolio in 2021.
1. Morgan Stanley - MS
The American multinational investment bank is showing confidence as it moves into 2021.
MS currently has a Zacks Rank rating of #2 a (Buy) and has been given a strong consensus ‘Buy’ rating by a further 27 research- firms. The investment bank is one bank leading the way forward ahead of some of its competitors heading into the new year.
In December it was cleared and given the go ahead for buy-back programs to be resumed, to which Morgan Stanley jumped straight into and a $10 billion share buy-back was approved which is set to pay shareholders as from January 2021.
This news will, of course, boost the company’s share figure moving forward and this was confirmed after the news broke in December as MS stocks share price increased by 5.2% and is 25% up over the year.
As of today, the company's share price sits at $76.47.
In the last quarterly results, MS reported a 25% increase in its net income growth along with its revenue growth increasing just above 16% as we came into 2021.
The company also has a reliable and good dividend with a dividend yield of 2.04%.
Moving forward, analysts also give MS a Mean consensus of ‘Outperform’, which indicates that analysts believe that the stock is expected to do better than the market return that is predicted.
Morgan Stanley projects a strong V-shaped recovery for 2021 and the coming years, based on the company's 2020 results which is setting the stage to achieve and deliver its 6.4% GDP growth in 2021 which is above the predicted forecast of 5.4%.
As the world slowly starts to open up as anticipated this year, the growth for MS worldwide is set to increase.
The U.S economy according to the Morgan Stanley research report indicates that the U.S statics has managed to remain in place and is forecasted a 5.9% GDP growth in 2021.
Although Europe is the bigger focus for the brand, as new infection rates increase significantly and the economy has a slower growth, MS has a forecast set for a 5% GDP growth.
With a PE ratio of 12.32%, its forward dividend yield of 2.04%, strong analyst predictions, makes Morgan Stanley stock a top pick for 2021.
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2. Amazon - AMZN
Amazon, the global multinational technology company that is so much more. Having their hands involved in various avenues including e-commerce, digital streaming, cloud computing to name a few.
Named as one of the Big top 5 companies within the U.S information technology industry, alongside other global smash-hit brands like Microsoft, Google, Apple and Facebook.
Amazon is arguably and has been named the ‘most valuable’ brand in the world.
Looking into Amazon’s financial figures, you will see that AMZN is not the cheapest of stocks to invest in but the long-term, the company's stability and growth are two key factors to pinpoint to this performing stock.
Amazon has been given a Zacks Rank rating of a #3 Hold at present. However, this does not mean to say that the stock is not worth buying into; it simply means it's advised that not if you are a current shareholder keeping your position until further movement happens is advised.
Having said that, AMZN stock has been rated a ‘Strong Buy’ buy 35 Wall Street analyst with one advising the stock to be a ‘hold’. Analysts have also offered a 12-month price target over the past 3 months with the average price target at $3,810.18 which is a 21.41% increase from its previous price, with a high forecast price target of $4,350.00.
As of the close on January 6th Amazon's share price was $3,138,38 and today stands at $3,186.02.
Given that 2020 has seen companies across the globe and across all industries take a big hit, Amazon benefited immensely. With its impressive and see-able growth and evolution into new technologies including new music streaming services moving into the new year.
AMZN has also confirmed in recent news that it recorded its biggest record to date of over 1.5 billion deliveries globally over the holiday season and is expecting to see the company's fourth-quarter results climb impressively by an expected 38%.
Predictions are set high for the company for the long-term, which is why Amazon is a hot large-cap stock to have in your growing portfolio.
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3. PayPal Holdings Inc - PYPL
PayPal Holdings, the online payment system has benefited and become more popular than ever before. Granted, the current pandemic has encouraged the company to become more popular as individuals turn to online payments due to lockdown measurements and individuals demand to purchase online with its instant money transfers being a huge advantage.
Again like Amazon, PayPal’s shares can be pricey but in the bigger picture when you look at the company's statistics, is it really as expensive as individuals have advised? We don’t believe this is the case.
The large-cap stock has a current Zack's rating of ‘Hold’ with 23 out of 29 Wall Street analysts advising the stock as a ‘strong buy’, 3 advising the stock a ‘buy’ and 5 giving is a ‘hold’ rating.
When it comes to analyst forecasts for the coming years, PayPal has been given an average 3-year forecast of $34,4b which is up 63.39%. The company's earnings per share price has also been given a respective average increase to $4.77 an increase of 78.65%.
PayPal’s overall earnings in 2020 were $3,142b and based on 13 Wall Street analysts predictions, the company has been given potential earnings for 2021 to be $4,084b and leaning into 2022, a forecast is predicted PYPL’s earnings to be $5,084b.
PYPL’s share price as of today stands at $233.86.
PayPal’s financial health is also in green, the company's assets to liabilities are above and well- covered and PYPL’s EBITDA of $4.06b is comfortably able to keep down the company's debt interest levels of $8.94b.
In PayPal’s last quarterly results in November, the company showed to have exceeded above all predicted forecasts, having a revenue of $5.46billion in comparison to the predicted figure of $5.41 by analysts and its EPS (earnings per share) at $1.07 up above analyst predictions of $0.94.
Moving forward into 2021 and years to come, PayPal is a stock that is going to be around for the long-term and a stock that is going to give great growth along with value as the company continues to expand and individuals continue to thrive and shop online.
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4. Pinterest - PINS
Pinterest Inc, arguably one of the most creative social media platforms available to the world to date. The company's original, unique, creative design of being able to pin creative images and videos to be shared to their own imageboard is attracting billions to become a part of and steer away from the negativity that some social platforms pose and focus solely towards positivity.
In the year of 2020 as individuals were forced to stay at home or be restricted due to the Coronavirus pandemic, seen individuals across the globe log-on to the social platform to create and gain creative inspiration.
Along with being inspired, you can also purchase your chosen creative designs through the social media app with companies such as IKEA and Shopify adding their shopping catalogues to the social platform.
The pin-board social app stock was reported to be up by a whopping 290% in 2020 which has drawn in investors around the world to look closely and focus intently on the creative social platform.
Closing on its final date 31st December, PINS stock price was $65.90 and to date the current stock price for the company stands at $67.11.
As many believe that the company is going to improve its outlook for digital advertising is one of the advantages along with the financial elements that the social platform benefits from.
19 Wall Street analysts have forecasted that the PINS stock is one to be involved in with 14 giving the stock a ‘strong buy’ at present. The Zacks Rank rating for Pinterest has been confirmed as a ‘hold’ for the stock.
Looking at the company's 2020 figures, the company's revenue has grown faster then both the U.S market average by 36.5% and the U.S Internet Content & Information industry average.
In contrast for 2021, the company has been forecast to grow by a magnificent rate of 64.96% per year and in the company's fourth-quarter is also predicted by experts to increase to climb to around 60% year-over-year.
As for the company's full-year forecast, experts have predicted a 43% increase in 2020/2021 with a further increase to $2.4 billion in the next year.
PINS’s debt-to-equity ratio is also considered to be reasonable when calculated at 0.19.
Being given a green light from analysis for the long term and it's successful 2020 as people become ever more creative and its blossoming figures makes this bubbly stock a perfect addition for long term investment.
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5. Etsy Inc - ETSY
The popular e-commerce website Etsy has been a powerful force in 2020 and is set to continue further moving into the new year and coming years.
Again like other e-commerce companies on the list, Etsy has also benefited from the pandemic as consumers have had the additional time to be able to shop for unique, hand-crafted designs from occasion design products to wedding dresses, Etsy has it all.
Etsy operates from all across the globe connecting the custom designers with their consumers from anywhere in the world.
Additional products which have been in demand this year are the unique face masks designs by creators which have drawn in good sales across the globe.
As a stock which has been classed as being undervalued by 4.92% due to its fair value price and with its cash flow, when you see how the stock has been performing further with the stocks forward predictions, you may want to look to be involved in this growing company.
A Zacks Rank rating has rated the ETSY stock currently as a ‘Buy’ along with 11 of 13 Wall Street investors who have rated the stock a ‘Strong Buy’ moving forward with 1 ‘Buy’ and 1 ‘Hold’.
And there is a reason as to why analysts are predicting such forecasts, as the company’s gross merchandise hit $10 billion alone in 2020 which is almost double the previous year's figure.
According to The Wall Street Journal, Etsy also saw a better growth on digital sales on Cyber Monday with 73% out beating some of the bigger-brand names including Amazon.
From the company's third-quarter report it shows a positive outlook.
As of September 30th, the company's revenue at $451,478 was up by 128.1% year-over-year with its market revenue being a whopping $341,623 up by 141.2% from 2019.
Alongside the company's financial increases, Etsy saw an increase of 55.4% in its active buyers up from 44,807 in 2019 to 69,649 as of 2020.
The forecast moving to the future predicted by analysts is looking bright for ETSY.
The company's revenue is forecasted to grow 24.72% per year with the average 3-year forecast revenue being set at $2.7b which is +99.2% from this year's predictions.
ETSY’s earnings per share forecast also has a generous outlook as it has an average 1-year forecast of $2.04 leading up to its average 3-year forecast of $4.55 up by +135.65%.
To conclude Etsy’s earnings are predicted to grow by 31.81% per year.
As the company's revenue is forecast to grow 24.72% faster than the US market average, its revenue set to sparkle in the coming years and lockdown measurements being projected across the globe which will create more sales-driven online, makes Etsy stock an investment addition to buy and keep for the foreseeable future.
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6. Teladoc Health Inc - TDOC
Teladoc Health Inc was in the right place at the right time in 2020 as the telemedicine industry strives to push moving forward into the future.
The multinational telemedicine and virtual healthcare company founded in 2002 has escalated throughout 2020, as people stayed at home and still continue to do so around the globe with lockdown impacts in place which have been set to seize the spread of the Coronavirus infection.
As individuals were unable to be seen in one-on-one physical appointments, step in Teladoc Health to save the day, as the brand enables people to have medical appointments with health professionals virtually online.
Last year, Teladoc’s stock rose by 139%, as the telemedicine market started to expand for the future.
As it stands the company has roughly around 51.5 million active members set across the globe who are able to benefit from the company's services.
Although, the company's success over the year may question people to believe that the company has only benefited because of the Covid-19 outbreak, this in fact is not the case.
TDOC has been on the rise for many years as the industry leads into the future with its virtual medical presence. In 2005 Teladoc conducted more virtual appointments than any other company within the industry at 15 million virtual appointments.
The Zacks Rank rating is set as a ‘Hold’ for the company with an ‘A’ rating for growth, along with 15 out of 24 Wall Street analysts giving a rating ‘Strong Buy’ and 9 giving the brand a ‘Hold’ rating.
The forecasted growth revenue for the company is looking strong with an exceptional growth rate of 76.31% per year.
The first-year average growth rate for the medical stock is set at $2.0B up by +125.44% and looking forward ahead to the 3-year average forecast which is set at $3.5B up by +307.4%.
Wall Street analysts have also predicted Teladoc's share price could potentially increase to $230.04 by January 2022, whereas the company's share price today stands at $219.29.
Although still waiting for the company to become profitable, Teladoc Health is proven and showing where the brand is leading.
This stock's performance is far from over and is set to grow over the years ahead as we go into a digital future. Which makes Teladoc Health a stock to buy in 2021.
7. Harvest Health & Recreation Inc - HARV
As 2021 will see President-elect Joe Biden take over the helm at the White House, the cannabis industry is set to potentially soar.
HARV a Canadian- based company is one of the smaller-cap stocks in comparison to other cannabis stocks on the market today but has significant advantages over others.
Currently trading at $2.56 per share analyst and investors who are already in the cannabis market, are advising the stock to be a ‘steal buy' due to the company's potential growth over the coming years.
7 Wall Street analysts have given a mean consensus ‘Buy’ rating with a target price of CAD $4.29 for the stock at present, in light of the company's financial figures.
In 2020 sales were up $229m, although net sales were slightly down by - $45.5m with the company's net debt calculating at $167m.
In HARV’s second-quarter financial report, the company's revenue was up by $55.7 million up by 109% from 2019 where it stood at 26%.
As of the company's third-quarter report, HARV reported its third-quarter revenue at $61.6 million, a rise by 86% from 2019 along with an adjusted EBITDA of $10.5 million in comparison to the second quarter result of $4.1 million.
The company's net loss was also significantly enlightening in the report as HARV reported a net loss of $2.1million in the third quarter compared to a net loss of $39.1 million in the third quarter of 2019.
Moving forward, Harvest Health & Recreation placed a halt on some of their plans in 2020 to cut back on costs due to the impact of the pandemic, however, expansions are currently set to be carried out in 2021 as the industry gains more growth and the attention it deserves.
As the new year comes into full swing, the cannabis industry is an industry that is set to soar with Harvest Health & Recreation Inc being one of the top stock picks to buy in the fairly new cannabis industry.
Stock Picks: Summary
These chosen top 7 best stock picks for 2021 offer a range of diversity as these stocks are set across various industries, have and archived fantastic growth results and are set for more success in the long-term as predicted by analysis and each company’s management.
How to invest in the top 7 performing top stocks?
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Key Takeaways:
- 7 best stock picks for 2021 are also stocks to keep hold for the long-term.
- The chosen top performing 7 stocks still come with their own risk elements, which is wise to carry out additional research when looking into your chosen stocks.
- If you are a beginner, having a good diversity of stocks is advised when creating your portfolio.
- Choose your broker wisely when you are looking to start your trading journey as this could be costly.
- Always keep a gentle reminder that nothing is guaranteed when investing, so it is wise to always be aware of what you are going into before placing your money.
We hope our list of the top stock picks to invest in 2021 has been helpful. Whatever your investing strategy, keeping track of the current trends and predictions is the best way to build a strong portfolio full of the best stocks.