Best Growth Stocks in 2021
Planning to invest in stocks in 2021? Want to stay ahead of the stock trends? We’ve made it easy with our complete guide to the top 10 growth stocks to buy for 2021.
Getting in early with the best growth stocks for 2021 could pay off big time!
What are the best growth stocks for 2021? Will there be any good growth stocks for 2021? Where can I find the top growth stocks for 2021? Worry no more! We’ve rounded them up!
Check out our list of the top 10 best growth stocks for 2021 to buy below! We’ve covered them all!
Wait, what is a growth stock and why should I invest in one?
Let us explain.
Growth stocks are hugely popular in the stocks trading game, typically offering some of the best returns in the whole stock market. If they’re not already on your radar, they should be!
They’re like ‘mega stocks’ and if you get in at the right moment, they’ll make you a very happy stock trader.
What makes them so valuable is that they always have ‘growth’ on their mind - they’re expected to get bigger and bigger, which implies that their stock price will also get bigger too!
But it’s not all fun and games with growth stocks! There are plenty of things to keep in mind, like big price swings when the stock market turns bearish.
That’s why you’ve got to be smart and learn how to invest in growth stocks. Knowing the right time to get involved is crucial!
In this article, we’re going to explain what growth stocks are, how to invest in them and uncover hopefully the top 10 best growth stocks for 2021 to buy.
You can buy all of these top growth stocks, as well as many others, at eToro and pay 0% commission!
What is a growth stock? And why should I invest in one in 2021?
A growth stock is any company that is expected to grow faster than average stocks. Typically, companies that are growth stocks want to reinvest their earnings to continue growing.
And it’s this expansiveness that makes them so appealing to stocks traders. Their growth implies that they’re doing well and will keep doing well.
A growth stock can be any industry, it is not confined to those terms. Growth stocks tend to be industry disruptors who are bringing about a change in a well-established industry.
It should be pointed out that growth stocks are not the same as value stocks. However, it’s a good idea to invest in both to keep your portfolio diverse and minimise risk.
Do note that growth stocks can be riskier to trade than average stocks, tending to be more volatile and experiencing big price swings downwards as well as upwards.
That said, growth stocks do particularly well during bull markets. During bear markets, growth stocks can decline as investors stay away and focus more on value stocks, so make sure you recognise the right moment to get involved in a growth stock.
You also probably don’t want to invest in companies that expand too quickly. If you see signs of that, it may be the case that you should stay away.
This is especially true of companies that are expanding during uncertain times in industries that are not doing too well or lack a future.
You should also avoid risk by looking for growth stocks that are already generating income, avoid those that are not yet at that point (they still might fail).
And when you finally decide to invest in growth stocks, invest wisely. There’s no need to pour all your money into them. If all goes well, you don’t need that much, but if things turn for the worst, at least you didn’t invest heavily.
If you like risk and volatility, then growth stocks are for you. If not, then you should probably focus on value stocks instead.
Best growth stocks for 2021 to buy!
Here’s our list of best growth stocks for 2021 to buy - make sure you check them all out!
1. Netflix (NFLX)
It’s no surprise that Netflix made itself on our list of best growth stocks for 2021!
It’s become a household name, and by the very definition, an industry disruptor, getting people away from the cinema and TV, and in front of the laptop screen instead.
That said things are starting to change and streaming services like Netflix are starting to become the norm, so it could be said to be more of an industry leader instead of an industry disruptor in that sense.
The biggest change in recent years comes in the forms of HBO Max, Disney+ and Amazon Prime Video, just to name a few.
While these companies are new to the streaming game, they are not new to the TV and film industry and could pose a major threat.
Nevertheless, Netflix has done pretty well for itself, having appreciated in value approximately 30,200% since its IPO in 2002.
Have You Considered Buying Netflix stock?
2. Adobe Systems Inc. (ADBE)
You can be forgiven for thinking that Adobe is just a fancy application for reading PDFs and creating memes in Photoshop!
Actually, Adobe is a mammoth of a company that provides a wide variety of services to other companies.
Some of those include Adobe Campaign, which allows businesses to send marketing materials, such as emails and push notifications to users, and Adobe Experience Manager, an excellent tool for creating websites.
What makes these tools stand out from others is that they require almost no coding to set up, meaning that almost anyone can use them with relatively little training.
Since Adobe’s IPO in 1986, it has appreciated approximately 119,200% (the highest in this list!), making them one of our best growth stocks for 2021 to buy, especially if they continue to forge strong partnerships with other large companies.
On top of that, in the last five years, Adobe’s stock has gone from around $93.94 to $466.11 (at the time of writing).
Have You Considered Buying Adobe stock?
3. MercadoLibre Inc. (MELI)
We all know about Amazon and Alibaba, but did you know that there’s a new player in eCommerce Town? And that they’re pretty close to dominating the whole of Latin America? (that’s approximately 652 million people!)
Well, there is, and its name is MercadoLibre! Actually, like many others in this list, MercadoLibre has been around for quite some time and was originally founded in 1999 in Argentina.
And in recent years, it’s really started to make a killing and become a significant force in eCommerce.
2020 was a particularly good year for them, leaping dramatically upwards in price since March (most likely related to the coronavirus!).
MercadoLibre is an online marketplace for eCommerce and online auctions, and so in some senses, it’s a bit more similar to eBay than Amazon.
Nevertheless, its presence is huge and ever-growing, making them one of the best growth stocks for 2021 and beyond.
Have You Considered Buying MercadoLibre stock?
4. Five Below Inc. (FIVE)
Five Below is a relative newcomer that perhaps many people are still not familiar with yet, especially for those outside the US.
For those that don’t know, Five Below is a chain of discount stores that sells products mostly up to $5 (hence the name, Five Below - pretty clever!).
Another factor that makes them so unique to perhaps be thought of as an ‘industry disruptor’ is their focus on the ‘store experience’, attempting to make the idea of shopping exciting.
In doing so they believe they can drive up sales, noting that most discount stores do not have a focus on making the consumer enjoy the shopping experience.
Five Below really started to expand their range of products and locations around 2011, and since then have hardly stopped to take a breath.
Today, there are approximately 900 Five Below stores across 38 states of the USA.
Have You Considered Buying Five Below stock?
5. Align Technology Inc. (ALGN)
Align Technology is an uber interesting choice for best growth stocks and probably not one that would immediately come to mind when you think of stocks to buy.
They’re a manufacturer of digital 3D scanners, primarily used for orthodontics (a dentistry speciality that deals mostly with correcting misaligned teeth and bite patterns).
Just like all the other stocks on this list, they have a lovely habit of expanding and have been publicly traded since 2001.
Interesting fact, approximately 8% of people who wear braces have used products related to Align Technology, which gives you some perspective of how much of an impact they have made in the market.
Further to that, since around March 2020, they’ve been rallying hard upwards. However, do note that over the last five years, they have peaked and troughed at least three times, but then again, this time does look a little different.
Have You Considered Buying Align stock?
6. Tesla (TSLA)
Tesla is the only real player in the electric vehicle industry. They not only made electric cars cool, but they also made them a real possibility - they were little more than a dream a few decades ago!
And with the ever-depleting supply of oil and other fossil fuels, we really need them to pull through.
But Tesla is not without issues. For a start, they have some rivals now. One in particular, Nikola, is really starting to pick up speed.
More importantly, however, there’s an urban legend that every time Elon Musk tweets an investor sheds a tear (Elon tweets, investors weep!).
Well, not literally, but Musk’s Twitter habit has hurt Tesla’s stock price plenty of times.
Tesla has appreciated approximately 1,280% since its IPO in 2010, which is why it’s one of the leading stocks for 2021.
Have You Considered Buying Tesla stock?
7. Peloton Interactive Inc. (PTON)
Like to keep fit and exercise regularly? Then why are you not yet investing in Peloton Interactive?!
Peloton Interactive is one of the top exercise equipment companies in the world despite only being around for eight years.
Peloton’s top products are an exercise bicycle and a treadmill, but what really makes these products stand out is that owners can subscribe to a monthly subscription to remotely participate in exercise classes that are streamed on the bike or treadmill’s screen.
So, as you can see, Peloton Interactive are not just interested in selling you exercise equipment, they’re interested in monetising your whole exercise routine!
Peloton’s interactive exercise sessions also proved to be a major hit during the coronavirus pandemic, with many of us under lockdown and nowhere to exercise.
Have You Considered Buying Peloton stock?
8. Beyond Meat (BYND)
Beyond Meat are the fastest-growing plant-based food manufacturers in the world (another growth stock for those interested in healthy living!).
They have capitalised on the growing number of people taking up the vegan/vegetarian lifestyle, whether that be for health reasons, animal rights reasons or environmental reasons.
And perhaps what has made them so successful is how well they mimic real meat products such as chicken, burgers and sausage, on top of celebrity praise and big partnerships.
Beyond Meat are clearly an industry disruptor that’s on the up and up with growth definitely on their minds, making them one of the best growth stocks for 2021.
However, do bear in mind that Beyond Meat has faced concerns over food safety, with some claiming that their food is incredibly processed, which is a turn off for some consumers.
Have You Considered Buying Beyond Meat stock?
9. Amazon (AMZN)
Is there anything Amazon can’t do? They’ve got themselves into so many different markets now, it’s hard to keep count!
Today, Amazon are not just in the eCommerce industry, they’ve also expanded into streaming services (Amazon Prime Video), and cloud computing (Amazon Web Services), which has made them rivals with many of the stocks on this very list!
It’s hard to believe this is the same company from 1999 that was on the same street as a pawn shop, a heroin needle exchange and adult film ‘parlour’.
Yes, Amazon is a huge corporation now, but unbelievably, it keeps on growing and growing.
Amazon has appreciated approximately 86,260% since its IPO in 1997, an ungodly amount in a little more than two decades.
And it is that tremendous growth that makes Amazon perhaps one of the best growth stocks around today and one of the top growing stocks for 2021 in particular.
Have You Considered Buying Amazon stock?
10. Microsoft (MSFT)
Microsoft brought the computer into everyone’s home in the way we know it today. Though they have a major rivalry with Apple, it is clear that Microsoft is the real winners.
Because of this, you can also say that Microsoft is perhaps more industry leaders instead of industry disruptors.
You could even say they have a strong monopoly on the industry (if you don’t use a Microsoft or Apple computer, what on Earth are you using?).
And Microsoft loves to buy back stock from the market which can quickly pump up the stock price.
Microsoft has appreciated approximately 104,000% since its IPO in 1986, making them clearly on the best growth stocks for 2021.
Have You Considered Buying Microsoft stock?
There are many opportunities to invest in the stock market in 2021, but what has become clear this year is that it is worth looking to the best possible growing stocks. Below are top key points for growth stocks in 2021.
If you remember anything from Best Growth Stocks For 2021 To Buy, make it these key points.
- Growth stocks are stocks that are expected to grow much faster than average stocks. Typically, they have a strong focus on reinvesting and expansion.
- You may be less familiar with MercadoLibre, Five Below, Align Technology, Peloton Interactive and Beyond Meat. But these stocks are major players these days and you should be watching them.
- Unsurprisingly, many of the top growth stocks are tech companies. Amazon, Microsoft, Adobe, Netflix, Tesla - the list goes on!
- Amazon and Microsoft top our list of best growth stocks for 2021. Both have been doing exceedingly well in 2020 and have a strong history of growth.
Want To Start Investing In Top 10 Growth stocks?
Now you know what the top growth stock to invest in 2021 are, you’ve got a solid foundation to start your stock investing. The next step is to find a reputable stock broker
On the multi-asset platform eToro, you can buy in all of the top 10 stocks that are mentioned on this list. Whether you’ve traded stocks before or are just breaking into this form of investment, its user-friendly service is a great way to compare currencies and start trading today.
If you are a stock beginner who’s looking for the best stock brokers 2021, eToro’s innovative CopyTrader feature could provide you with some valuable insights into the best stock trading strategies. This functionality enables you to watch the actions of experienced investors in real time, and then automatically copies their decisions. It’s a great way to try out different strategies before finding the winning formula for you.
eToro – Buy Top Growth Stocks with 0% Commission
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Remember, though, that even the best growth stocks aren’t guaranteed to make you money. This means it’s important to do your due diligence and find a robust risk management strategy before you start trading stocks.
We hope our list of the top 10 growth stocks to buy in 2021 has been helpful.
Disclaimer: Stocks are highly volatile. Your capital is at risk