Top 10 Stocks for 2021
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.
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.
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.
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.
American Homes 4 Rent (NYSE:AMH).
American Homes for Rent is a single-family rental real estate investment trust (REITs) seeing record demand for properties due in part to the coronavirus led exodus from high-density urban city centers. It joined forces with J.P. Morgan Asset Management to build 34 single-family rentals in the Las Vegas area, including 12 three-bedroom homes and 22 four-bedroom homes. The REIT has experienced a 20% increase in tenants coming from multi-family complexes. American Homes 4 Rent collected 96.5% of the rent due for the second quarter.
Invitation Homes Inc. (NYSE:INVH)
Similar to American Home, Invitation Homes plays in the same niche market. Invitation Homes traditionally are located near good schools, near major employment centers, and with solid transportation corridors. INVH owns 79,256 homes in 16 markets in its portfolio and is the largest single-family landlord in the United States. The REITs’ July occupancy levels set a record at 98% and rent collection ran at 95% and they pay a small dividend.
Teladoc Health (NYSE:TDOC)
Teladoc Health is the largest publicly traded telemedicine company in the United States. The telemedicine services company crushed its third-quarter year-over-year results with revenue of just under $289 million. The company saw 2.8 million total visits, in the June-ended quarter, which more than tripled the number of visits from the quarter a year ago. Although, it did report a net loss, not as great as analysts expected. Revenue is expected to top $1.02 billion for the year. And TDOC is acquiring Livongo Health for $18.5 billion expected to be consummated by the end of the year.
Livongo Health (NASDAQ:LVGO)
Livongo offers chronic disease management programs, focusing on diabetes, joining connected devices, data sharing, and coaching. These companies combined, a $37 billion telehealth business, are the next generation of health care disruptors. 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.
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.
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.
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