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What Stocks To Buy In 2021?

13 Min Read
Last Updated March 27th 2021

The Best Stocks to Buy in 2021

What are the top stocks to buy in 2021 you ask? Probably these ones!

Are there any good stocks to watch in 2021? Will 2021 be a good time to buy stocks? Let’s look at some of the best and find out.

When looking at what stocks to buy in 2021, you can’t escape the pandemic that has come to characterise 2020 and will probably continue throughout much of 2021.

Now, while initially, that sounds quite scary, it shouldn’t be, because behind every terrible thing that’s ever happened in the stock market, there’s always someone making money somewhere out of it.

While some stocks may seem very obvious - Zoom, for example (more on them below!) - there are plenty you might not be aware of that had a tremendous 2020 and are set to likely continue that through to 2021.

But remember though, just because a stock is considered a great stock to buy in 2021, it doesn’t mean that it will necessarily be the case. You got to be an active participant in the stocks market.

That money won’t ‘passively’ make itself; you’ve got to get in and out at the right moment because chances are when the pandemic passes, things will change once again.

In this article, we’ll look at which stocks to buy in 2021 and why they could be great investments. Of course, though, you should do your own research before getting involved with any stocks mentioned in this article!

How to pick the best stocks to buy in 2021?

That’s not an easy task and not one you’re likely to get a straight answer for, whoever you ask.

The truth is the stock market changes a lot. Great stocks to buy in 2021 could be a terrible stock to own in 2022! 

You have to stay focused on what continues to give them value and of course, consider how long you want to hold that stock for.

Further to that, don’t just follow the stock, you need to follow the similar stocks, see what is really happening in the stock market.

A great way to spot what might be a great stock to buy in 2021 would be to look at what did particularly well in 2020, assuming that much of 2021 will be similar.

The most likely reason this may be the case is because of the coronavirus. In the latter half of 2020, the number of cases has started to rise again, and it looks like it will set the trend for much of winter 2020/2021, unfortunately.

So, it would be a good idea to look out for stocks that did well during the pandemic and keep away from the stocks that struggled. 

Remember that for some stocks, a few months without making any sales or at least a reduced income can kill them off.

Because of this, it is super important that you be more cautious than you would be most other years.

Vigilantly stick to your risk management strategy, think of it as your best friend who’s trying to keep you away from danger.

On top of that, it may be better to look at investing more in value stocks instead of growth stocks which carry more risk, though that’s not always the case.

That said, most of our top 10 stocks to buy in 2021 did more amazingly during 2020 than any other year.

Top 10 stocks to buy in 2021!

Let’s look at 10 stocks worth considering in 2021: 

  1. Amazon (AMZN)
  2. West Pharmaceutical Services (WST)
  3. PayPal (PYPL)
  4. Regeneron Pharmaceuticals (REGN)
  5. DexCom (DXCM)
  6. DocuSign (DOCU)
  7. Etsy (ETSY)
  8. Tesla (TSLA)
  9. Zoom (ZM)
  10. Nikola (NKLA)

You can buy any of these stocks, as well as many others, at eToro and pay 0% commission!

Most of the companies in this list have shot up in price because of the pandemic. Most notably, alongside tech stocks, you'll see a lot of companies that work with pharmaceuticals.

Here’s our list of the best stocks to buy in 2021! Write them down, check them out and research them!

1. Amazon (AMZN)

Are you really surprised to see Amazon in this list? Amazon stock is just unbeatable!

Their growth story is just simply amazing, and it doesn’t ever look like it’s going to stop. Pretty much everything they get involved in turns to gold. 

Not only are they one of the world’s largest and most successful eCommerce companies, but they’ve also got involved in cloud computing with AWS and streaming with Amazon Prime.

All this made Jeff Bezos, the world’s richest man, even richer in 2020

In the first half of 2020, Amazon rose in price 49.3%, making it one of the top stocks to buy in 2021.

It’s hard for a giant company like Amazon to grow, most companies reach a certain point and that’s it. But Amazon is clearly a special case, it’s already so big and yet it continues. When you grow that much at this size, that’s pretty insane!

Would you Considered Buying Amazon stock?

2. West Pharmaceutical Services (WST)

West Pharmaceutical Services is probably a company you’ve never heard of before. Having their IPO back in 1988, they’ve actually been around quite a while, and generally speaking, are pretty steady stock.

But that all changed when the pandemic started. You see, West Pharmaceutical Services specialises in injectable pharmaceutical packaging and delivery systems.

So, it’s really not a surprise at all they had a good 2020. It’s companies like West Pharmaceutical Services that could help deliver the vaccine we need to defeat this virus.

That said, prices took a tumble in February 2020, but when March came, they shot up in value and seem to be remaining there. 

In the first half of 2020, West Pharmaceutical Services rose in price 51.4%.

Have you Considered Buying WST stock?

3. PayPal (PYPL)

PayPal did really well in 2020 and you can totally see why. Everyone’s working from home and no one can meet in person. 

They became the default way of sending people money during lockdown and stay-at-home orders, whether that be for relatives, eCommerce, work or to pay bills.

PayPal also benefited from increased interest in eBay during the pandemic as well, PayPal being eBay’s main payment provider since 2003.

Do remember though that PayPal has a lot of rivals in this industry, with an ever-growing number of start-up services that are seeking to outdo them.

In the first half of 2020, PayPal rose in price 61.1%, making it one of the top stocks in 2021.

Some have suggested that PayPal is quite overvalued at the moment and so it is likely that when the pandemic ends, they may decrease in price.

Have you Considered Buying PayPal stock?

4. Regeneron Pharmaceuticals (REGN)

Regeneron Pharmaceuticals is another stock that’s rocketed upwards in price because of the coronavirus.

They are a biotechnology company who has researched and produced medical products for a large variety of different medical disorders.

What has made them such a valuable stock right now is that they have been approved by the US Department of Health and Human Services to produce antibodies for the coronavirus.

In other words, the treatments they produce could save many people’s lives if proved effective. In some ways, they are quite similar to West Pharmaceutical Services.

In the first half of 2020, Regeneron Pharmaceuticals rose in price 66.1%.

That said, do note that their stock prices have been particularly volatile over the last few years, often shooting up dramatically and then falling back down equally as dramatically.

5. DexCom (DXCM)

DexCom is another health-related company on this list of best stocks to buy in 2021, but here’s what makes it different: it has nothing to do with the pandemic!

In fact, DexCom rose very dramatically in spite of the pandemic. If the pandemic didn’t take place who knows how well it could be doing right now.

DexCom produces continuous glucose monitors, devices that prevent diabetics from having to prick their finger every time they want to check their blood sugar levels. 

Such technology is hugely advantageous to people with diabetes who will be able to check their glucose levels whenever they want.

In the first half of 2020, DexCom rose in price 85%. And, unlike many of the stocks on this list, DexCom stands a very good chance of continuing to grow after the pandemic passes.

Have you Considered Buying DexCom stock?

6. DocuSign (DOCU)

Working from home? Need to sign a lot of papers? Maybe you even started or ended a job in 2020? Well, then you probably didn’t sign those papers in person, did you? 

With everyone on lockdown working from home, most people can’t just go out and sign that important piece of paper, you probably had to do an e-signature, which is exactly what DocuSign provides.

Their e-signature tools are particularly useful for any HR department, accounting services or any company where signing agreements is super important.

On top of this, they also offer what they call the ‘Agreement Cloud’ which can integrate with over 350 different tools such as Salesforce and Google Suite.

In the first half of 2020, DocuSign rose in price 132.4%.

7. Etsy (ETSY)

Etsy is an interesting stock for this list of best stocks to buy in 2021, specialising in a wide range of handmade and vintage products sold on their eCommerce platform.

What makes them a particularly interesting stock to get involved with in 2021 is how well they have done because of the pandemic, gaining immensely from the demand for masks.

Further to that, many consumers wanted to buy their niche handmade products or who wanted to purchase craft supplies.

And the fact that they are an eCommerce platform only accelerated consumers’ interest in them, as they didn’t have to go out and shop.

In the first half of 2020, Etsy rose in price 139.8%. Do note that some believe they may struggle to continue with this trend after the pandemic.

8. Tesla (TSLA)

Who knows, in a few decades from now, the idea of driving an electric car could become not just a reality, but the norm, and that achievement could lie almost completely on Tesla’s shoulders.

So far, in 2020, Tesla has been storming along getting closer and closer to their goal of making 1 million cars a year - a claim that garnered Tesla a lot of criticism back in 2016 when they only produced 50,000 cars in a year.

At the beginning of October 2020, Tesla had produced 318,000 cars, an excellent improvement from 2016, and they are aiming for 500,000 by the end of the year.

It makes you wonder what they could have achieved if the pandemic never happened!

In the first half of 2020, Tesla rose in price 158.1%.

Have you Considered Buying Tesla stock?

9. Zoom (ZM)

When we’re all old, in 50 to 60 years from now, we’ll all be reminiscing over how we used Zoom to keep in touch with friends and family throughout the pandemic!

Zoom being on this list is really no surprise at all. You could even call it one of the brands of the year, a company that defines 2020.

However, it will be very interesting to see how Zoom continues on when the pandemic ends.

It will probably need to strike some major partnerships with large companies to become their primary tool for video conferencing to stick around.

But the fact is many companies already have a dedicated service for this and what probably drives Zoom’s value is independent users keeping in contact with their loved ones.

In the first half of 2020, Zoom rose in price 272.6%, making it one of the top stocks to consider in 2021.

10. Nikola (NKLA)

Tesla must be pretty worried about how fast Nikola has grown over 2020! 

They’re one of the fastest-growing companies on the stock market today and it looks like that trend is going to continue. 

It should be mentioned though that Nikola did have some troubles later on in 2020 sinking in price quite dramatically a couple of times throughout the year, and so stocks traders should exercise some caution.

That said Nikola has shown an unbelievable growth since mid-November 2020, that’s most likely due to their partnership with General Motors who acquired 11% of the company.

This is huge news that could greatly accelerate the number of electric vehicles on our roads in the near future.

In the first half of 2020, Nikola rose in price 554.4%.

Ready to buy Nikola stock?

Final words on what stocks to buy in 2021

Prepare for the worst and best possible cases! The pandemic could clear up faster than expected or linger on more than expected.

You need to plan for different scenarios: ‘If this happens, I’ll do that or if that happens, I’ll do this’ etc. The more prepared you are, the less likely you will be shocked if things go bad.

Pandemic will probably continue throughout much of 2021. There is also the possibility that we might see more of it in 2022 as well.

Stocks that are likely to only be good for the pandemic will probably not hang around after the pandemic ends. Similarly, stocks that are doing bad now, will likely return to some sense of normality eventually.

Pandemic stocks’, if you would like to refer to them like that, are for the short term, not the long term.

Long term stocks might get quite damaged during the pandemic but will likely recover eventually. 

The pandemic may present a good opportunity to get your foot in the door on good stocks at a lower than usual price. You’ll just have to sit tight and remember to get out of ‘pandemic stocks’ when the pandemic ends.

Another key thing to note is that the best traders can survive any market, but that’s only because they put their survival before profit.

You will only ever make real money if you learn how to survive first by making that money last longer; it’s about the long run, not the sprint!

If you’re still not sure what stocks to buy in 2021, try to look at the situation in a different light. 

Look for the certainties that the pandemic has caused and learn to trade the pandemic, not fear it. Look for the new supply and demand that it has caused and make it work in your favour.

If you really want to be cautious throughout 2021, tour goals probably need to be stricter.

Of course, remember that if things get really bad, the best trade to make is no trade. You may have to learn to sit on your hands more in 2021, but that’s not necessarily a bad thing!

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Key points

If you learned anything from What Stocks To Buy In 2021?, make it these key points.

  • West Pharmaceutical Services and Regeneron are making massive gains because of the coronavirus. West Pharmaceutical Services provides injectable pharmaceutical packaging and Regeneron’s approval to create coronavirus antibodies.
  • Amazon continues to grow to new heights. Already a huge conglomerate, Amazon is still growing, both in terms of services and stock value.
  • DexCom is likely to be a breakthrough stock in 2021. Their innovative technology is likely to continue ploughing their stock value up throughout 2021, despite the pandemic.
  • Nikola grew more in stock price than Tesla in 2020. This is likely because of its partnership with General Motors.

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Disclaimer: Investing in stocks involves significant risk of loss and is not suitable for all investors. 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.

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