These top 15 stocks to explode in 2021 promise an interesting year
Planning to invest in stocks in 2021? Want to stay ahead of the stock trends? Then you’re probably asking yourself:
“What stocks should you invest in 2021? Will 2021 be a good year to invest in stocks? Which stocks will be the best return on investment in 2021? What can we expect from the stock market in 2021?”
Let’s take a look then!
2020 was a pretty anxious year for the stock market and many of us are longing to find out what 2021 might hold.
We’ve made it easy with our complete guide to the top 15 stocks to invest in for 2021.
Beginners have difficulties finding the best stocks in 2021. We’ve all been in this situation, so don’t worry! We understand how confusing it is when looking for new stock investments. And that’s why Trading Education is here to help.
If you look back to articles on ‘stocks to invest in 2020’, no one could have predicted that the worst pandemic in 100 years would blow all our expectations to dust.
The future of the stock market is never certain, so making stock predictions can be tricky - especially since the periods of volatility in the wake of the coronavirus pandemic.
However, the good news is that some stock experts have said 2021 could be the year of the stock market.
And now looking forward to what remains of 2021, it’s impossible to ignore the fact that things have changed a lot. Albeit, perhaps not as terrifying as we initially thought.
In this article, we’ll look at potentially some of the top 15 stocks that could explode in 2021! As well as why they’re important and what gives them value.
Top 15 Stocks to consider in 2021
Before we take a closer look at the best stocks in 2021, here are our top 15 picks:
- Tesla (TSLA)
- Nikola (NKLA)
- Zoom (ZM)
- Netflix (NFLX)
- Disney (DIS)
- Beyond Meat (BYND)
- PayPal (PYPL)
- ServiceNow (NOW)
- eBay (EBAY)
- Alphabet (GOOG)
- Facebook (FB)
- Alibaba (BABA)
- Amazon (AMZN)
- Apple (AAPL)
- Microsoft (MSFT)
You can buy all of these top stocks, as well as many others, with eToro and pay 0% fees!
Will Stocks in 2021 be impacted by the coronavirus?
The coronavirus is the elephant in the room. We can’t afford to not talk about it when discussing the state of the stocks market of 2021.
It’s a discussion that needs to happen, no matter how often you keep hearing it, no matter how sick your ears are of that cursed word.
Experts are predicting that the coronavirus will likely continue well into late 2021, which means we may have a very rough 2020/2021 winter (especially if we see more lockdowns!). And then there’s the possibility that we might still be dealing with in early 2022 as well.
There’s an important illusion you need to clear from your mind.
You need to stop thinking of the coronavirus as a bad thing and start thinking about it as something that is happening, an event. It is now a certainty.
The best stocks traders don’t worry about if the market is doing amazingly or is doing badly, what matters is if there is something to trade, a direction to follow along to.
The biggest change is that you, as a stock trader, will have to adapt your approach to trading in 2021 to make sure to steer away from stocks that might be unpredictable in 2021 and focus on the rising stars.
So, you need to have the dreaded virus at the forefront of your mind whatever stock you decide to trade in 2021.
That said, you should also have the opposite in mind as well. Though the chances are a lot slimmer, you should also prepare yourself for what will come after the coronavirus as well (more on that at the end!).
Top 15 stocks to explode in 2021!
Here’s our list of the top 15 stocks to explode in 2021! Keep an eye out for them! They may do exceptionally well next year.
You will see A LOT of websites when you type into Google what stocks to buy in 2021, and it quite interesting to notice that not many of them have the same choices.
That can be down to a lot of reasons.
Potentially they view the situation very differently, they have different info, know more or less about certain industries, and then there are some that have actually bought the stocks they are pushing online (at Trading Education, we would never do this! Totally unethical!).
So, you really need to be careful with what you want to trade. Don’t focus too much on people’s advice, look at the charts and come to your own conclusions!
Let’s move on! Here are Trading Education’s top 15 stocks to explode in 2021!
1. Tesla (TSLA) - There’s no stopping the cars of the future!
Tesla has to be one of the coolest stocks to own in the last few years. It really has brought people closer to the possibility of owning a functioning electric car, making it our first entry on our list of top 15 stocks ready to explode in 2021.
Good reasons to invest in Tesla
Tesla made the very idea of an electric car a ‘cool’ concept, whereas before it just didn’t have the same appeal.
That appeal is partly down to Elon Musk who is also the CEO of SpaceX and the founder of The Boring Company.
But aside from popularity, Tesla has proven it can meet production goals as well. A few years ago, Musk said they planned on producing up to 500,000 by 2020 and many thought this was not possible.
Well, actually Tesla missed the mark, but only by 450 cars. And all this happened during the coronavirus pandemic!
So, it is largely accepted that they definitely would have smashed that record if they didn’t have to close up for a while.
By accomplishing this, it shows that Tesla is beyond an idea and are now a reality. It is now very possible that they are about to transform the car industry.
Why investing in Tesla could be risky
Stock traders who trade Tesla though need to be very careful of Elon Musk, who’s erratic behaviour has gotten them into trouble a number of times.
He is a big Twitter user and every time he Tweets something controversial, there is always the chance that it could hurt Tesla’s price.
In fact, back in May 2020, one of Musk’s tweets cost the company $14 billion in value, after he wrote “Tesla stock price too high imo”.
And if we look back to 2018, Musk and Tesla were both fined $20 million each by the US Securities and Exchange Commission for a misleading tweet about taking the company public.
Musk also put his employees under a lot of pressure to return to work in California while the coronavirus was still rampaging on, reopening the factory despite an order prohibiting it.
The situation leaves us with several questions. What other rules are they willing to break to succeed? And how could the stressful working conditions result in a decline in quality?
Is it worth investing in Tesla?
Despite the risks, Tesla is largely surging, reaching its peak in January 2021 before making a slight decline in February.
The Economy Forecast Agency predicts Tesla stock might be worth as much as $1,052 by December 2022.
Meanwhile, Gov Capital predicts Tesla stock could be worth up to $749.21 in one year and up to $1,872.17 in five years.
Both estimates would seem to suggest that buying now would be an excellent opportunity.
Have you considered buying Tesla (TSLA) stock?
2. Nikola (NKLA) - Posed to become Tesla’s biggest rival?
In 2021, we can’t talk about Tesla without talking about their biggest and newest rival, Nikola, who has also jumped into the electric car industry.
Nikola, who have also taken their name from legendary inventor Nikola Tesla, is fast becoming an alternative to Musk’s Tesla for zero-emissions cars, gaining a lot of attention back in 2020.
Best reasons to invest in Nikola
Similarly to Tesla, they are also trying to make electric vehicles ‘cool’, though they seem to be focusing more on hydrogen-powered trucks than sports cars, and this difference in approach could help Nikola.
Nikola’s stock jumped upwards of 50% when it was announced that they were forging a partnership with GM (General Motors), who would acquire 11% of the company and allow Nikola to use some of their production facilities.
Stock traders started to imagine the possibility of all GM cars being powered by Nikola. It would have been revolutionary.
Could investing in Nikola be risky?
Nikola stock has proven itself to be very volatile. Perhaps even the most volatile stock on this entire list.
While Nikola stock gained a lot of value, it then proceeded to lose a lot of it in 2020, and now in 2021, it is only trading slightly higher than it was at the beginning of 2020.
The primary reason behind this was GM stepping away from their partnership which may have been the result of fraud allegations against Nikola.
The allegations were serious enough to force founder Trevor Milton to step down.
Hopefully now with Milton out of the picture, Nikola can move past this.
Is it worth investing in Nikola?
For the time being, Nikola is still the underdog in the electric vehicle market, but they could make a very good hedge against Tesla, making it potentially one of the top 15 stocks to explode in 2021 and a small-cap stock with huge growth potential.
Gov Capital is bullish on Nikola’s return to prominence, estimating that the stock will be worth approximately $52.38 within a year and up to $346.46 in five.
MarketBeat sees more potential, giving Nikola stock a 52-week range between $10.42 at the lowest to $93.99 at the highest.
Have you considered buying Nikola (NKLA) stock?
3. Zoom (ZM) - Keeping businesses alive during the quarantine
If there is any company most of us will remember when looking back to 2020 in the years to come, it is definitely going to be Zoom.
Though they have actually been around since 2012, the company really burst into everyone’s lives in 2020 as an alternative to other video conferencing software such as Skype, which has fallen from grace in the last few years.
Top reasons to invest in Zoom
Zoom had amazing growth throughout 2020. According to Statista, in the fourth quarter of 2020, they made $188 million in revenue, and for the fourth quarter of 2021, they are projected to make $883 million in revenue, a gigantic increase.
Founder, chairman and CEO Eric Yuan is confident that Zoom will continue to grow, even as we move past the pandemic, believing that working from home is here to stay.
Instead of believing that people will simply return to the office after the pandemic, many people who only got a taste of working from home in 2020 will likely prefer it and not want to go back.
He also stated: “We recognise this new reality and are helping to empower our own employees and those of our customers to work and thrive in a distributed manner”.
Highlighting the fact that many companies do not all work in the same location and need tools like Zoom to operate.
Top reasons why investing in Zoom could be risky
Stock traders need to consider if they believe Zoom will outlive the pandemic.
When most of us finally return back to the office, will Zoom still be seen as the video conferencing tool of choice? Or will it just fade away? That question will define if Zoom will be one of the top 15 stocks to explode in 2021.
Another key thing stocks traders need to consider about Zoom is that early on some security experts noticed vulnerabilities that could be manipulated.
If these vulnerabilities have not been properly addressed and something happens, it could severely harm Zoom’s stock price.
Thankfully, it does look like some action is being taken with Zoom introducing 2FA (two-factor authentication) as well as a number of other improvements.
Is it worth investing in Zoom?
Despite the numerous security concerns, it didn’t stop people from using Zoom at all and the stock has done really well because of the pandemic.
WallStreetZen gives Zoom stock a minimum forecast of $240.00 and a maximum forecast of $570.00 for the next 12 months.
This is low in comparison to WalletInvestor who gives Zoom stock a one year forecast of $634.89 and a five-year forecast of $1,830.02.
Have you considered buying Zoom (ZM) stock?
4. Netflix (NFLX) - Will this streaming giant be able to fight off rivals?
It really isn’t surprising that Netflix is on this list, even before the pandemic Netflix was massively popular. It started the golden age of online streaming as we know it.
Best reasons to invest in Netflix
While many other companies may create their own streaming services, Netflix is already strongly established, with a wide range of content from many different sources, including their own original content.
In 2020, Netflix’s number of subscribers continued to increase. According to Statistica, they passed the 200 million barrier in the fourth quarter of 2020.
Further to that, according to Backlinko, Netflix gained 36.57 million new subscribers in 2020, its highest ever.
It’s that wide variety of content and experience in the market that make it likely to be one of the top 15 stocks to invest in for 2021.
Why Netflix might be a risky stock to invest in
But, just like Tesla, Netflix is not alone in this industry anymore. Rivals are coming thick and fast, many of them being well-known television and film-related companies, such as HBO and Disney (see below).
Neither are as big as Netflix’s largest rival though - Amazon Prime Video, which has approximately 150 million subscribers (supposedly 11% of the market globally) and a lot of content only available to them.
Netflix also has another major risk: it’s expenditure on content production, which continues to grow year by year.
Backlinko also highlights how Netflix spent approximately $17.3 billion on video content in 2020, up a bit more than $2 billion in 2019.
The risk here is if for whatever reason Netflix fails to turn a profit, its expenditure could outweigh its revenue. It’s an issue many production companies come into.
So, is it worth investing in Netflix?
Netflix stock is predicted to keep doing pretty well for the next few years.
The Economy Forecast Agency predicts that Netflix stock could reach highs of $841 by October 2022.
Gov Capital estimates that Netflix stock could be worth between $790.83 in one year and up to $2,704.89 by five years.
Have you considered buying Netflix (NFLX) stock?
5. Disney (DIS) - Larger and more diverse than you would expect
A super important thing to bear in mind about Disney is that they don’t just make films, which has, of course, been very disrupted during 2020.
Why Disney stock could be a clever investment
They are also a huge streaming service, launching Disney+ in November 2019, and with a wealth of popular films and TV shows to showcase.
Not only do they stream Disney content, but also from partners like National Geographic, Marvel and Pixar to name a few. It has probably been their saving point, preventing 2020 from being a really rough year.
On top of that, they of course also make money from merchandise too, which is immensely popular with young kids. Disney has a lot of ways to pull in revenue.
In turn, this has made them notable rivals of Netflix. While Netflix may have a more diverse range of content to stream, Disney is very wealthy and could in time overcome this.
And to top it all off, Disney may reopen parks in 2021, which will bring in a great deal of revenue.
Could trading Disney stock be risky?
Disney stock took a huge dive in 2020 as the coronavirus shut down tonnes of businesses.
While there isn’t anything special about this, if we see some kind of catastrophe happen because of the coronavirus, or perhaps it ends up lasting longer than we previously thought, it will likely harm the stock.
Though a drop could be seen as a good chance to get in a cheap stock. At the time of writing, funny enough, Disney stock is at an all-time high.
Perhaps though it is better prepared this time with the revenue coming from Disney+.
Is it worth investing in Disney stock then?
Disney could make a great hedge option for Netflix and there’s absolutely no reason why you can’t trade both if you have good insight into the industry.
The Economy Forecast Agency estimates Disney stock will reach $265 by April 2022, a handsome increase.
Gov Capital suggests that Disney stock might perform even better though, giving an estimate of $292.43 for the next year and $1,002.462 for the next five years.
Have you considered buying Disney (DIS) stock?
6. Beyond Meat (BYND) - Could this stock turn us all vegan in the near future?
Beyond Meat is an interesting choice for 2021 and will certainly stand out on this list. They specialise in alternative meat products made from plants, mostly emulating chicken, beef and pork.
Top reasons to invest in Beyond Meat stock
They have been praised by celebrities which really boosted their popularity and have made partnerships with Dunkin’ Donuts, Tesco in the UK and others in Canada.
Beyond Meat has also gotten praise for being environmentally friendly as well with an important focus on sustainability. Which is an important thing to note because many non-meat eaters avoid meat for environmental reasons.
If the market for vegan/vegetarian food continues to grow in the coming years, it is likely that Beyond Meat will continue to grow too.
One of the biggest markets where vegan diets are on the rise is China. According to EcoWatch, the vegan market was expected to grow by 17.2% between 2015 to 2020.
On top of that, Starbucks offers Beyond Meat products in China too, showing that China may be a great place for the brand to grow.
This makes Beyond Meat potentially one of the best growth stocks for 2021 and potentially one of the top 15 stocks to explode in 2021.
Top reasons why Beyond Meat stock might be a risky pick
However, with all stocks, there are things to watch out for and Beyond Meat is no different.
There have been concerns about food safety as well as some concern about the ‘ultra’ processed nature of their food.
It may actually be the case that Beyond Meat food is no healthier than real meat because of its processed nature, which may lead to a big backlash against them, especially as many people have turned to vegetable-based diets to improve their health.
So, make sure you research this when considering Beyond Meat.
Is it worth investing in Beyond Meat stock?
If you believe that the vegetarian/vegan lifestyle will continue to grow in the coming years, Beyond Meat is definitely a stock you should be considering.
LeoProphet.com gives Beyond Meat stock a 52-week high of $203.44 and a low of $48.18 and predicts that by August 2021, it could be worth up to $167.45.
Gov Capital is more bullish on Beyond Meat stock, predicting it could reach $412.25 in the next year and up to $1,935.94 in five years.
Have you considered buying Beyond Meat (BYND) stock?
7. PayPal (PYPL) - The primary way to send money during the pandemic?
Perhaps it is not too surprising, PayPal had a truly great 2020 and it’s probably down to the coronavirus pandemic, enabling it to act as an alternative way to send money to people you cannot reach.
Why you should consider PayPal stock
Its payment service made it a lot easier for people to send money to one another during lockdown and travel restrictions, becoming an important lifeline for some users.
Comparing PayPal’s stock performance to just three years ago is truly staggering. It’s a huge improvement that could potentially mean that it will be one of the top stocks to explode in 2021.
PayPal also offers some of the lowest transaction fees for sending money, making it appealing for those who would prefer not to use a bank to send money.
Why you should be cautious of PayPal stock
People may keep using it if they find it easier after the pandemic, but we should also mention that there is a rising number of online payment services that may steal PayPal’s thunder from under them, many of which are arguably more in tune with consumers’ needs.
PayPal now has Apple and Google to contend with who have moved into the industry with Apple Pay and Google Pay. And to make things worse for them.
Facebook Messenger is also adding a payment feature with no fees too. All three of these companies have a large reach of users already which will make adoption pretty easy.
And finally, PayPal recently started charging inactive accounts fees which certainly won’t win over new or existing users.
So, should you be investing in PayPal?
Despite a growing number of rivals in the industry, PayPal’s outlook is positive.
WallStreetZen gives PayPal a minimum forecast of $132.00 and a maximum forecast of $350.00 for the next 12 months.
Meanwhile, Financhill gives PayPal a 52-week high of $309.14 and a low of 482.07.
Have you considered buying PayPal (PYPL) stock?
8. ServiceNow (NOW) - Technical management support company is a major hit
ServiceNow is likely a company that you haven’t heard of before, and for some, it may be a bit too technical to understand.
In short, they are a cloud computing company that provides IT service management to a number of companies.
Best reasons to trade ServiceNow stock
As you can imagine, companies like ServiceNow are increasingly in demand to help companies handle their IT infrastructure which only ever grows in importance.
ServiceNow has been steadily growing over the last few years, with only a few major stock price falls over the last three years.
Generally speaking, they are on the up and up and, as you may have guessed, have also had a great 2020, reaching their highest point ever.
All this makes ServiceNow possibly one of the best growth stocks for 2021 and possibly one of the top 15 stocks to explode in 2021.
Top reasons to be cautious of ServiceNow stock
Though it needs to be mentioned that in the cloud computing arena, they have rivals, and it may primarily be their management service that gives them their value.
Some of their biggest rivals include Micro Focus, Intel, VMware, SAP and IBM, all of which are already pretty huge.
Michael Wiggins De Oliveira, writing for The Street, has also highlighted that ServiceNow’s growth prospects have been slowing down for a while now.
This could result in stock traders concluding that ServiceNow stock is overvalued.
All in all, is it worth investing in ServiceNow?
CNN expects ServiceNow to continue growing in price, forecasting that it could be worth a high of $695.00 in the next 12 months. They also forecast a low of $520.00, which is still higher than its current price at the time of writing.
Gov Capital again gives a more bullish prediction, estimating that ServiceNow stock could be worth $786.79 in one year and up to $2,776.40 in five years.
Have you considered buying ServiceNow (NOW) stock?
9. eBay (EBAY) - Leading the way for the collectables and used items niche
eBay used to be a major player in ecommerce in the early 2000s and since then lost a lot of popularity, but the coronavirus has given it an edge that may only be temporary but is definitely worth trying to trade.
Excellent reasons to buy up eBay stock
eBay is not likely to overcome major rival Amazon, only being worth a small fraction of their value, but still could have the possibility of returning a nice profit in 2021.
That said, eBay and Amazon do not operate in entirely the same market.
As Amazon has grown, it tends to focus more on new products, while eBay focuses more on used items and collectables, giving it a niche that it dominates.
Why you should be careful when considering eBay stock
The straight-up question stock traders should be asking themselves is after the pandemic, will eBay continue to have a use? What’s to stop eBay stock just falling off a cliff when we can shop more freely again?
Further to that, while we mentioned above that eBay has found its niche for collectables and used items, there are still other up-and-coming platforms they need to contend with.
The fastest rising rival is Etsy which while it focuses more on handmade and vintage products, it could easily put the squeeze on eBay.
Another important concern highlighted by Simply Wall St is that eBay has a lot of debt, approximately $7.58 billion as of September 2020.
In the end, should you invest in eBay stock?
It is these unique things that make eBay potentially one of the top 15 stocks to explode in 2021.
CNN’s analysts predict that eBay stock could reach a high of $84.00 or a low of $55.00 in the next 12 months.
Financhill gives a slightly less optimistic prediction, estimating that eBay stock could reach a 52-week high of $64.85 and a low of $26.02.
Have you considered buying eBay (EBAY) stock?
10. Alphabet (GOOG) - Tech giant is solidly ingrained in our lives
Google (technically known as Alphabet) has always been a good stock to trade, though historically it has had some sharp ups and downs, which should encourage you to be somewhat cautious.
Why Google is a great stock to buy
Stock traders should remember that Google has a wide range of applications, which continues to make Google one of the top 15 stocks to potentially explode in 2021.
On top of having the world’s most used browser (Chrome, 63.59% of the market), Google is also the owner of Android, which powers many of our smartphones and retains a lot of control over the apps Android users can download (via the Play Store).
In fact, according to statcounter, approximately 71.9% of the world’s population uses Android phones.
But this is just a small fraction of what Google is really about. According to Investopedia, Google actually generates most of its revenue from its advertising service, Google Ads.
Top reasons to be sceptical of Google stock
There has been some dent in their popularity in the last few years due to some not liking how they attain data on users as well as their monopoly as an internet search engine. This has even led some to move to alternative browsers like Brave.
There has also been big talk about breaking up the company in the US to make the market fairer. In Europe there were similar concerns.
And Google has gained some trouble in other parts of the world because of the lack of tax they pay. While it seems they are now paying a fairer share of their taxes, the issue didn’t help their image.
2021 so far has seen Google involved in perhaps too many scandals. The first of which involved the backlash from firing AI ethics researcher, Timmit Gebru.
Then, Google got into a spat with Australia when the country planned to pass a law that would make Google have to pay for content from local news. This resulted in Google threatening to block Australia from using their services.
So, in the end, the picture isn’t so pretty and there is a lot to think about.
What’s the verdict? Is it worth trading Google stock?
Google might get itself into trouble every now and again, but the fact remains that it is an integral part of many people’s lives. Its reach is far and vast, and it isn’t likely to be going anywhere any time soon.
Gov Capital predicts that Google stock could reach $3,137.19 in a year and up to $10,084.64 in five years.
WalletInvestor gives a more conservative estimate of $2,288.82 in a year and $3,228.12 in five. Either way, it looks like Google is predicted to continue growing.
Have you considered buying Google stock?
11. Facebook (FB) - Despite scandal after scandal, this stock just won’t go away
Facebook has been a super important stock play since its early days and will probably continue to be for decades to come, making it probably one of the top 15 stocks to explode in 2021.
Reasons why Facebook is a top stock to get involved in
It really isn’t hard to see why Facebook is a strong stock to buy.
Firstly, Facebook dominates much of Europe, Africa, the Middle East, North and South America, Oceania and South Asia as the most used social media platform.
They have no real competition, except in Russia and some former Soviet states where there are a number of alternatives such as Vkontakte and Odnoklassniki, and QZone in China, for example.
Just like Google, Facebook collects data from its users and uses this data to assist advertisers to target you better while using their platform. This is primarily how Facebook makes its profits.
And 2020 was an excellent year for them. According to Mike Issac, writing for The New York Times, Facebook’s revenue grew in the fourth quarter “to $28 billion, up 33 percent from a year earlier and beating Wall Street estimates”.
Also, as we mentioned above when discussing PayPal, Facebook Messenger is moving into providing payments to rival PayPal.
Though there will supposedly be no fees involved, there is still the possibility they could be introduced later on. Further to that, this will also give them more info on their users’ finances.
And now reasons you definitely should be careful of Facebook stock
But there have been waves of scandals that have not helped Facebook’s image over the years.
That said, Facebook is very used to scandals and they don’t seem to have much of an effect anymore. Despite them all, Facebook stock continues to surge.
Though they did cause a minor drop in usage among young people a couple of years ago, these days it’s almost as if we all expect scandals and continue to use the service they provide anyway.
And just like Google, there is also some distrust of Facebook over how they acquire and use the data they gain on users.
But further to that, the use of the platform to spread disinformation is also a major issue, with some calling for some kind of regulation to be put in place.
Remember that scandal we mentioned above between Google and Australia? Well, Facebook was also involved in the scandal too.
And one final concern about Facebook stock, also highlighted by Mike Issac, was that the company was closely watching court ruling in Ireland that could prevent them from transferring data from the EU to the US.
All things considered, is it worth investing in Facebook stock?
Just like Google, Facebook is also a deeply integrated part of many of our lives. Even those of us who do not use it can recognise its reach.
CNN’s forecast for Facebook stock generally looks quite good. They predict a high of $418.00 and a low of $220.00 in the next 12 months.
Financhill’s forecast is a little lower, predicting a 52-week high of $304.67 and a low of $137.10.
Have you considered buying Facebook (FB) stock?
12. Alibaba (BABA) - The ‘Amazon of the east’ is only getting bigger
If you haven’t heard of Alibaba yet, they are Amazon’s primary rival in the eCommerce market, with a stronghold over China and a growing presence across Europe and the rest of the world, making them potentially one of the top 15 stocks to explode in 2021.
The best reasons to invest in Alibaba
Alibaba is led by Jack Ma, an extremely well-known serial entrepreneur and philanthropist in China.
They continue to be one of the best growth stocks for 2021 and a great hedge against Amazon.
An edge that Alibaba might have over Amazon is that they are able to put out more products onto the market than Amazon because of their relationship with sellers.
While Amazon buys and resells products from sellers, Alibaba merely acts as a middleman, connecting buyers and sellers. This reduces risk substantially.
But that’s not all. Alibaba is also involved in cloud computing too with their Alibaba Cloud or Aliyun service.
And they are also involved in video hosting too, with their Youku service, showing they are willing to challenge Amazon’s entire business model.
While they might not have a reach as big as Amazon’s, they can definitely cement a monopoly on such services in China.
Reasons to be cautious with Alibaba stock
They have had an extremely successful 2020 so far and that success is likely to continue into 2021, but stock traders need to keep an eye out on the US-China trade war which could disrupt Alibaba’s stock prices if it escalates.
The good news is that with Joe Biden now in power as the US president, we may see a change. We may even see an end to the tension between the US and China. But for now, we’ll have to wait and see.
But another reason to be cautious of Alibaba stock is China’s crackdown on Jack Ma and ‘big tech’ as a whole.
Supposedly, the Chinese government doesn’t want tech companies expanding into other sectors to go unchecked.
While it seems likely that Alibaba will move on from this unscathed, it likely won’t help its growth potential in the immediate future.
So, is it worth investing in Alibaba stock?
Despite the crackdown on ‘big tech in China, Alibaba’s outlook is solid.
CNN predicts that Alibaba stock could reach highs of $421.38 and lows of $248.51 in the next 12 months.
WallStreetZen, on the other hand, gives a lower estimate for the next 12 months, giving Alibaba a max forecast of $395.00, but a higher min of $265.00.
Have you considered buying Alibaba (BABA) stock?
13. Amazon (AMZN) - More than just ecommerce, these guys sell everything
Amazon has a lot of rivals in our list of top 15 stocks to explode in 2021 - not just Alibaba!
Why Amazon is the best possible stock for you to invest in
They are also rivals of Netflix and Disney in the streaming business, eBay in the eCommerce business, and Google, ServiceNow and Microsoft (SPOILER ALERT! We’ll get to them in a second!) in the cloud computing business.
They really have as many fingers in as many pies as possible, which for many companies doesn’t work very well, but somehow, it works really well for Amazon.
And to make things crazier, 2020 has been one of Amazon’s best years, making Jeff Bezos, the world’s richest man, even richer (well, until Elon Musk came along!).
Top reasons to be mindful of Amazon stock
Amazon’s image is quite polarising depending on who you talk to. Stock traders love it, but Amazon’s workers? Not so much.
A big issue that tends to get swept under the rug is worker rights. It’s no secret that employees are poorly paid and overworked (perhaps Amazon plans to replace them all with drones!) but could one day explode if not dealt with.
Most recently, in 2020, it reached the point where Amnesty International stepped in to support the workers, calling on Bezos to improve working conditions.
In fact, there is a lot to be concerned with at Amazon. There’s even a whole Wikipedia called ‘Criticism of Amazon’, and it’s fairly big, highlighting a lot of issues.
Amazon is perhaps the most criticised company on this list.
So, should you consider investing in Amazon?
So, it’s really not surprising that they’re high in our list of top 15 stocks to explode in 2021.
Gov Capital predicts that Amazon stock could reach $4,608.86 in one year and $15,412.27 in five years.
Meanwhile, The Economy Forecast Agency gives a more conservative estimate, predicting that we could see Amazon stock reach $4,095 by March 2023.
Have you considered buying Amazon (AMZN) stock?
14. Apple (AAPL) - The first-ever two trillion-dollar company
Apple stands out above its competitors for its innovation, often leading the way in a number of areas, starting technological trends, in turn, it has given them a lot of value and gaining them the second-highest spot on our list of top 15 stocks to explode in 2021.
Ultimate reasons you should consider investing in Apple
And we should also not forget that Apple was the first-ever two trillion-dollar company, reaching that glorious moment in 2018.
A really interesting thing about Apple that makes it one of the best stocks to buy for 2021 is they have a habit of buying back stock from the market, which can bring up the price.
Just like all the other stocks on our list of the top 15 stocks to explode in 2021, Apple has had a really great 2020, though there were a few sharp falls here and there, including one major fall in August.
Top reasons to be wary of Apple stock
There was a very sinister scandal involving Apple in late 2020 where it was revealed that the company had lobbied the US government to relax a bill designed to prevent the US companies from using forced labour in China, specifically in relation to Uighur peoples.
As it turns out, Apple relies heavily on labour in China and supposedly benefits from forced labour in the Xinjiang region of China where up to 1 million Uighur people are in internment camps.
It’s a sordid tale and can have two potential negative outcomes for Apple stock. Firstly, users may decide to move away from Apple, disapproving of their business practices.
Secondly, stock traders should also consider what might happen if the bill does go ahead and how it may impact Apple’s production.
Is it worth investing in Apple stock?
It’s super likely that Apple won’t just be one of the top stocks to explode in 2021, but probably the rest of the decade.
The Economy Forecast Agency forecasts that Apple stock could reach as high as $201 by March 2023.
This estimate appears to fit in with the forecast by WalletInvestor, who predicts in one year Apple stock could reach $150.23 and up to $267.92 in five years.
Have you considered buying Apple (APPL) stock?
15. Microsoft (MSFT) - The world’s most used software is only growing
Microsoft tops our list of top 15 stocks to explode in 2021! And when you really think about it, it’s not surprising at all as it continues to have a monopoly over operating systems.
Why Microsoft is undoubtedly the best stock to buy
While Apple was reported to have around 100 million users, Microsoft was reported to have around 400 million, and supposedly, there could be up to 1 billion Windows-powered devices out there as well.
Further to that, Microsoft has an impressive number of applications that can cover most business needs and are a lot cheaper.
Many businesses can run solely on Microsoft applications for both business-to-business needs and business to client needs. They have become the standard.
Plus, as we mentioned above, they have also become a rival for Amazon, moving into cloud computing with their cloud computing service Azure, another industry that is growing in importance.
And, finally, just like Apple, Microsoft is known to buy back stock which is really good as it can pump up the price every so often as well.
Reasons Microsoft stock might be risky
Just like Amazon, Microsoft also has its own Wikipedia page outlining all its criticisms.
One of its most recent criticisms, as of 2020, is when the company decided to fire dozens of journalists and replace them with AI technology on their Edge browser and on the MSN website.
So, while Microsoft’s image is a little better than others out there, they too get into trouble sometimes.
Is it worth trading Microsoft stock?
Do you see people using Microsoft computers giving them up anytime soon? No, it’s not very likely.
WallStreetZen predicts a max forecast of $300.00 for the next 12 months and a minimum of $215.00 for Microsoft stock.
Meanwhile, The Economy Forecast Agency gives us a more cautious prediction, estimating that Microsoft stock could break the $300 threshold in September 2022 and reach $314.
Have you considered buying Microsoft (MSFT) stock?
How to pick the best stocks in 2021?
Like we said at the beginning of this article, you really need to have a good understanding of how the coronavirus has affected the stocks you think are a good trade.
Perhaps be more cautious this year than in previous years as the circumstances are a little less predictable than in previous years.
You should also bear in mind that governments, in particular, can be a little unpredictable during these kinds of emergencies, and their reactionary actions can have a big impact on a stock.
For example, let’s say the US state of California orders every employer to close up for a period of time, it could massively affect tech companies based in Silicon Valley, and as soon as work stops, the price of their stocks could dip dramatically.
Aside from this, you also need to remember everything you already knew about trading stocks. Don’t let your skills vanish in unfamiliar situations.
You can also look back at similar economic situations to see how stocks traders found worthy trades.
Don’t throw out what you know about stocks because of the crisis, if ever, you need to follow them more carefully than you ever have.
In the end, being mindful of risk always pays off!
This market won’t last forever!
Some stocks may do really well because of the virus, but after the virus, their demand may disappear, and we hear less about them.
So, it’s important to spot the right moment to get out while you still can.
For example, Zoom has become incredibly useful during the pandemic, but after the pandemic, will it still have the same use?
Many companies will return back to the office and when that happens, the number of zoom users may drastically decrease.
It also works the other way around as well.
Right now, there is a huge manufacturing decline because of the coronavirus. In the US alone, it is estimated that revenue from manufacturing will be down by approximately 10% for 2020.
We’ve also seen it in the commodities market as well as there is less demand for metals and other materials typically used for manufacturing. If there is no one to work on these materials, there is no need for companies to buy them.
But when the pandemic passes, we’ll probably see manufacturing pick up back to normal levels.
Ready to dive into the stock market?
One last comment about our top 15 stocks to explode in 2021
Remember, the stocks we’ve highlighted in this article are one’s we have faith in, you may look at the situation very differently and there is nothing wrong with that.
Doing your own research is super recommended!
How to buy top stocks in 2021 with 0% Commission
Now you know what the top 15 stocks to explode in 2021 are, you’ve got a solid foundation to start your stock investing. The next step is to find a reputable stockbroker.
If you’re interested in investing in one, or some, of the top stocks in 2021 listed on this page - we would suggest checking out eToro. This online broker gives you access to over 1,700+ shares (including the 15 picks listed on this page) - all of which can be purchased on a commission-free basis.
While eToro is super-popular in the UK, Australia, and much of Mainland Europe, the broker is also experiencing a surge of account sign-ups from the USA.
Here what you need to do to buy stocks from eToro:
Step 1: Open an Account with eToro Today – Pay 0% Commission on Stocks
To buy shares online you will need to open an account with a trusted and regulated broker. If using eToro, the registration process takes minutes. You simply need to provide some personal information and upload a copy of your ID.
Step 2: Deposit Funds
You’ll need to deposit some funds into your eToro account. This comes at a minimum of $200 and you have several payment methods to choose from.
If you want to buy shares instantly it’s best to use a debit/credit card or an e-wallet like PayPal.
Step 3: Search for Shares
Once your eToro account has been funded you will then need to search for the company stock you wish to invest in. You’ll then need to click on the ‘Trade’ button to go straight to the investment page of your chosen stock.
Step 4: Place a Commission-Free Buy Order
Finally, you will need to place a buy order to complete the share purchase process. This is easy as all you need to do at eToro is state the amount that you wish to invest.
It doesn’t matter if you are buying shares in a firm like Google that has a stock price in the thousands of dollars as eToro allows you to invest from just $50. This is known as ‘fractional investing’, as you will be buying a ’fraction’ of a share.
Once you confirm the buy order, the shares will be added to your eToro portfolio. If the shares in question pay dividends, this will be reflected in your eToro account as and when they are paid. You can sell your shares at any time - as long as the markets are open.
If you want to invest in the stock market and consider the top stocks to buy today, there’s no better place to do so than eToro. Simply click the link below to sign up today!
eToro – Buy Top Stocks With No Commission
eToro have proven themselves trustworthy within the industry over many years – we recommend you try them out.
Your capital is at risk. Other fees may apply
If you remember anything from What Top 15 Stocks Will Explode in 2021? make it these key points.
- Tesla and Nikola continue to battle it out for the electric vehicle industry. Nikola could make a good hedge against Tesla.
- Beyond Meat stock could be a very interesting pick for 2021. It’s plant-based meat substitutes could turn out to be a big winner in the years to come.
- Amazon has a lot of rivals in different industries. Despite this, it is still going strong.
- Microsoft and Apple are two of the top 15 stocks to explode in 2021. The two continue to show a lot of strength in the coming year.
If you enjoyed reading What Top 15 Stocks Will Explode In 2021? please share with anyone else you think it will be of interest to.
Please Note: Past performance is not an indication of future performance. The value of investments can go down as well as up. Any opinions, news, research, analyses, prices, or other information contained on this website are provided as general market commentary and do not constitute investment advice. Trading Education shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information provided.
What are growth stocks?
Growth stocks are defined as stocks that accumulate earnings and make sales faster than most other companies.
Typically, such companies are highly active in reinvesting their revenue to expand the company and have clear goals to grow their operations.
And it is this growth that makes them so appealing to stock traders as it is assumed that as they continue to grow, so will the price of the company’s stock.
What are the best safe stocks to invest in the long-term?
If you are looking for safe stocks, then you want to look for those that grow slowly and steadily and have minimal damage when disaster strikes.
According to Matthew Frankel, writing for The Motley Fool, the seven best safe stocks to invest in are:
Berkshire Hathaway, Disney, Vanguard High-Dividend Yield ETF, Procter & Gamble, Vanguard Real Estate Index Fund, Starbucks, and Apple.
Do note that ‘safe stocks’ are less likely to grow quickly and therefore are best treated as a long-term investment.
What stocks will double in 2021?
No one can say with any certainty what stocks will double in 2021, though so far, the stock market has been doing fantastically this year.
Realistically, looking for stocks that are supposed to double probably isn’t the best use of your time. The best thing to look for is stocks that have strong growth.
Note that stocks may continue to surge as more money is poured into the economy by coronavirus stimulus packages.
But keep in mind there is always a chance the stock market may have a few tumbles in 2021. Bull markets never last forever!
What are the most undervalued blue-chip stocks?
According to John Csiszar, writing for Yahoo Finance, the most undervalued blue-chip stocks of 2021 are:
Ford, Intel, Bank of America, LyondellBasell, IBM, Simon Property Group, Macy’s, Lockheed Martin, Carnival Cruise Lines, and Southwest Airlines.
How can I find out what hedge funds are buying?
With a lot of research! Some online groups might share such sensitive information, but as you can imagine hedge funds would prefer that information wasn’t available.
Perhaps the best way is to find out what hedge funds are buying is if you can get hold of their quarterly 13F form. This form is required to be filled out by institutional asset managers with over $100 million in assets.
While it should show most of what they are holding, these forms are not always reliable.
You can also check groups on platforms like Reddit as well where there is a strong community of traders but be careful to ensure what they are saying is the truth.