Etsy’s, revenue skyrocketed 137% in the second quarter of 2020, and Pinterest announced its revenue jumped 50% year over year for the month of July.
The pandemic is creating opportunities for a variety of companies including health, materials, consumer discretionary, medical, real estate, and more. Many of these companies are poised to benefit further because the pandemic isn’t going away anytime soon and they were entrenched before the virus reared its ugly face.
These stocks are positioned to be excellent stocks for 2021 and beyond.
1. Etsy (NASDAQ:ETSY):
Etsy is where crafters monetize their talents. Revenue was strong before the pandemic, rising 36% last year, yet it has mushroomed by 137% in the second quarter of this year. Face masks have been a driver, but business beyond has been accelerating. The site boasts 3.1 million active sellers, 60 million active buyers, and generating $420 million on $2.7 billion gross merchandise sales in the quarter.
2. Pinterest, Inc. (NYSE:PINS),
This popular visual search engine’s monthly users soared 39% to 416 million in the last year with most of the gain coming from overseas. Shares soared by 55% in July and they haven’t looked back since. When it went public Pinterest was reaching 43% of U.S. internet surfers and 80% of online moms. Top analysts are looking at Pinterest as a burgeoning e-commerce opportunity and becoming possibly one of the top-performing social media companies this decade.
3. Blue Apron Holdings, Inc. (NYSE:APRN)
After spending the last 10 quarters in a revenue decline the gourmet meal-kit provider saw a 10% top-line increase in its last quarter. Blue Apron generated $131 million on the top line in the three months ending in June. That’s a 10% increase over the second quarter of last year The orders per-member average is the highest it’s been in five years as Americans are forced to stay home and cook, there was an increase of 20,000 customers.
4. Invitation Homes (NYSE:INVH)
5. American Homes 4 Rent (NYSE:AMH).
Combined these two home rental companies own 132,256 homes. They snap up suburban homes, benefiting from the coronavirus push to migrate from big cities to safer havens. Homes traditionally are located near good schools, near major employment centers, and with solid transportation corridors. July occupancy levels set a record at 98% and rent collection ran at 95% and they pay a dividend.
6. Teladoc Health (NYSE:TDOC)
7. Livongo Health (NASDAQ:LVGO)
These companies combined are the next generation of health care disruptors. Merging is exactly what they will do by the end of the year. Teladoc has seen about a 165% increase in its stock this year, and the sector’s compound annual growth rate (CAGR) is expected to grow by 30% and reach a $640 billion dollar valuation by 2026. Although the market has not been kind, there’s no going back to pre-COVID-19 health care. The deal is valued at $18.5 billion.
8. Align Technology Inc. (NASDAQ:ALGN)
A dental gear company including the popular product Invisalign is poised for a stellar year as people return to their dentist for procedures delayed by the coronavirus. Revenue climbed 21% year over year pushing the stock to new highs, and adjusted net income grew by 50% while the customer count reached 9 million. Gross margin leaped 10%, its clear aligners product saw a 29% increase in sales as nearly 500,000 customers use the product, many of which are in the teen-targeted key growth market.
9. Illumina, Inc. (NASDAQ:ILMN)
This gene-sequencing company has agreed to pay $8 billion for Grail, an early-stage cancer detection company backed by Jeff Bezos from Amazon. What may turn out to be the most important factor though, in battling coronavirus is genetic sequencing, not drug makers. It’s the sequencing that’s determining a persons vulnerability to COVID-19. Adjusted profit is expected to jump by 53%, and revenue by about 29% just short of $4 billion.
10. The Home Depot, Inc. (NYSE:HD)
The coronavirus has shifted buying habits from discretionary purchases to necessary goods. They are suppliers of basic goods and PPE equipment and a well established efficient delivery service. Online sales jumped 90% in the first half of 2020 and predicted earnings growth for HD is 5.2% in the next fiscal year, and sales increased by more than 23% from a year ago. Annual sales sit north of $110 billion.
Bottom Line: These 10 strong candidates are only a handful of potential candidates with a strong potential for growth in the coming year. This grouping will give you an excellent jumping-off point in your search for stock poised to take-off in 2021.
The BLI Staff