In this article, I have selected a list of the most promising stocks to buy in 2021, consisting mainly of technology companies, but I also added companies from other sectors to diversify.
For those who are just starting to invest, I recommend looking at social trading, and in particular at eToro, where you can copy transactions of successful investors.
Here is my profile, and since May 2020 I have already earned 65%, overtaking the SP500 index by 2 times.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
The best start would be investing in blue-chip stocks (companies with a capitalization of more than $ 1 billion) + copying transactions of successful traders + leaving money on the balance sheet to buy shares in case of a drawdown. Allocate the budget equally for each asset type.
Now let's move on to the list of stocks:
Apple is the biggest company in the world and probably the best-recognized brand, producing iPhone, iPad, iMac, and other accessories. After the successful launch of Apple TV+ (Netflix competitor), they continue to diversify their business from hardware-only to a services company, thus growing in terms of returns and becoming even more stable and resistant against any economic crashes.
Adobe is an American company developing Photoshop, Premiere, AfterEfects and other photo, video and audio processing software. All products are closely integrated with each other, and the launch of Adobe Stock gave the company's clients access to their own catalog of various media content. After switching the business to a subscription model, the company's revenues have stabilized and are growing steadily.
Adidas is a German sportswear, footwear and accessories company. It is the largest sportswear manufacturer in Europe and the second largest in the world after Nike. The acquisition of Reebok allowed Adidas to reduce the cost of developing new materials, and the ownership of the rights to two well-known brands allowed Adidas to expand its distribution network and thus profit. The acquisition of Runastic expanded the company's business and made it more technological.
Autodesk is an American company developing AutoCAD, 3D Studio Max, Maya and other software for industrial and civil engineering, mechanical engineering, the media and entertainment market. Its software is used all over the world by major film studios, construction companies and game developers. Like Adobe, company switched to a subscription-based model that provides more stable cash flow, which in turn increased investor confidence and increased stock prices.
AMD is an American manufacturer of processors, graphics processors and adapters, motherboards and chipsets for them, and also supplies RAM and solid-state drives under the Radeon brand. With the highly successful release of Ryzen architecture and the relocation of processor manufacturing to third-party manufacturers, the company's processors are gaining more market share, which has a positive impact on the stock price.
Amazon is an American company with the largest e-commerce and public cloud computing platform in the world in terms of revenue and market capitalization. In addition to e-commerce and the cloud, the company provides access to a movie streaming platform and also owns its own book publishing house. Amazon Alexa is used in smart home systems and by some car manufacturers. In short — just buy and keep forever :)
Best Buy is an American company that owns a large chain of consumer electronics and related products stores. Part of Fortune 1000, the largest consumer electronics retailer in the US and Canada. After changing the development strategy and going online, since 2013 the company's shares have grown more than 10 times and continue to grow, which gives confidence in the correctness of the chosen strategy and the bright future of the company.
«The Walt Disney Company» is one of the largest entertainment media conglomerates in the world. The name of Walt Disney has been so firmly entrenched in our minds since childhood with cartoons, that sometimes we do not even think about it and go to the cinema to see another masterpiece of the famous film studio. And the launch of a streaming service to compete with Netflix and other services only increased the flow of money into the company, which confirms the growth of shares.
Etsy is one of the first websites selling handmade goods, and is one of the most popular in the world in this category. COVID-19 forced many to change jobs, or look for alternative sources of income, such as handicrafts, paintings, dolls, etc. And Etsy is an excellent platform for selling such products around the world and, accordingly, shares of this company are a good long-term investment.
Facebook is the largest social network in the world with over 1 billion users and the company of the same name that owns it. Despite many accusations, the company is improving and pays more and more attention to content moderation. After purchasing Instagram and WhatsApp and integrating services, the company has increased the number of users and continues to do so, which makes its stocks attractive for investment.
Fiverr is an Israeli online platform for freelance services. The company provides freelancers with a platform to deliver services to clients around the world. COVID-19, as well as with Etsy, attracted many potential customers and buyers to the service, which gave more than tenfold growth in shares and there are no particular reasons for a price reduction, so Fiver shares, like other relatively new IT companies, are quite promising investment.
MasterCard is an international payment system, a transnational financial corporation that unites 22 thousand financial institutions in 210 countries of the world. With the growth of the population on the planet, the company's shares also grow, since more and more people prefer to use cards and not carry cash with them. And the Mastercard Rewards program allows you to get cashback from purchases if you have a Mastercard.
Microsoft is one of the largest multinational companies producing proprietary software for various kinds of computing equipment - personal computers, game consoles, computer peripherals and others. Its Windows operating system is installed in most computers in the world, and the Xbox is familiar to every gamer, but the company's main income comes from the cloud services of Office 365 and Azure.
Nike is an American multinational sportswear and footwear company with stores around the world. Collaboration with teams and individual athletes has increased brand awareness, and the use of home workout programs during quarantine has put budding athletes on the company's paid programs, which has almost doubled the company's stock over the past year.
PayPal is the largest electronic payment system. Allows customers to pay bills and purchases, send and receive money transfers. PayPal operates in more than 200 countries, has over 200 million registered users, and works with 25 national currencies. The company's shares have surged more than 7-fold since going public in 2015 following a split with parent company eBay.
Qualcomm is an American wireless communications technology and SoC (System-on-Chip) development and research company. Its processors are used in Android smartphones all over the world. And with the release of the Qualcomm Snapdragon 888 SoC with an integrated 5G modem and Wi-Fi 6 support, the company has once again proved that it is a leader in the industry, which confirms the growth of its stock over the past 20 years.
2021-01-01