Making A List Of Top Stocks To Buy For 2021? Analysts Like These 3
As 2020 comes to an end, investors are making a list of top stocks to buy for the new year. Looking back, the stock market has gone through a wild ride this year. I guess it’s safe to say that no one would have ever guessed that the stock market could march to new heights amid the economic fallout caused by the coronavirus pandemic. The S&P 500 has risen by 15% this year, which is not shabby at all. The tech sector has been particularly strong. The Nasdaq Composite went up by over 40% this year.
But for investors, it is getting tougher for them to make investment decisions. You see, on one hand, the stock market has been hitting new highs in recent months. And now, a second coronavirus stimulus package is well underway. This should be welcome news for investors and could renew investors’ confidence. On the flip side, a new and far more contagious coronavirus strain has caused concerns. Should the vaccines fail to bring the pandemic to a halt, it may not be surprising if we see another stock market crash.
Digital Transformation & Green Energy To Remain Investors’ Favorites?
With so many stocks rising rapidly this year, investors are finding it increasingly difficult to justify these lofty valuations. With names like Tesla (TSLA Stock Report) and Nvidia (NVDA Stock Report) exploding over 700% and 120% respectively this year, investors could be hunting for electric vehicle stocks and tech stocks to buy going into 2021.
Of course, no one can predict exactly what the next few months may hold. The question is, should investors assume that the group of stocks that performed best in 2020 continue to maintain their momentum in 2021? I don’t know about you, but I believe the bigger narrative will not change (at least in the short term). You could expect investors to continue to cheer on companies that are working on digital transformation and green energy for the years to come. With that in mind, could these stocks be good buys on New Year’s Eve?
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Top Stocks To Buy [Or Sell] Right Now: Walt Disney
One of the greatest turnaround stories has got to be Walt Disney (DIS Stock Report). The company’s stock price climbed to an all-time high, hitting $183.4 per share before closing at $181.17 on Wednesday’s closing. When the coronavirus pandemic took the world by surprise, the entertainment company lost its main sources of revenue. But that did not deter the company from staging a comeback. Recall that Disney restructured its media and entertainment divisions, with streaming becoming the most important facet of the company’s media business.
The company has seen steady growth in the months since the COVID-19 pandemic hit. The knockout success with its Disney+ is what’s behind this. With such an ambitious plan, many believe that the company will dominate both the streaming and theater industry moving forward. Its significant momentum in its online streaming service is worth going into details. Notably, as of December 2, Disney+ had 86.8 million subscribers, reflecting exceptional growth since its inception in November 2019. Also, ESPN+ had 11.5 million subscribers while Hulu had 38.8 million. This undoubtedly helps the company offset declines in revenues due to the closure of theme parks. Also, Disney recently unveiled the first look of its next cruise, Disney Wish, which is slated to set sail in 2022.
Of course, now that two vaccines are being rolled out across the U.S., Disney’s theme parks could see a return in traffic. Similarly, its cruise lines could be ready to sail again. Disney is also getting a boost from an anticipation of increased consumer spending after President Trump signed the COVID-19 stimulus deal. With a growing streaming business and recovery in other segments, could now be a good time to buy DIS stock?
Top Stocks To Buy [Or Sell] Right Now: Fastly
Coming up next, we have fast-growing tech stock Fastly (FSLY Stock Report). As the name suggests, the edge cloud computing company speeds up and secure the content delivery process for its clients. With the company’s share prices up by over 300% year-to-date, investors are beginning to wonder if there’s more room for stock price appreciation. If you ask me, It is normal to be skeptical after a big run. However, the company’s recent momentum seems to suggest that its growth is far from over. And with the future of U.S. business and consumption moving online and into the cloud, you could say that the demand for Fastly’s solutions is only going to get even more sought after over the next decade.
Of course, the digital transformation accelerated this year as a result of the pandemic. Organizations and individuals have been scrambling to get online for work, entertainment, and shopping. As a result, Fastly saw rising demand for its services. Chances are, a lot of this digitalization will stock around. And that bodes well for Fastly.
From the company’s most recent financial report, the company blew investors out of the water. Fastly reported a 42% jump in total revenue year-over-year. Enterprise customers generated 88% of its trailing twelve-month total revenue. Fastly seems to know where its strengths lie and could be looking to grab even more of the market share. Now that FSLY stock is trading at a discount from its all-time high in October, will you be adding it to your watchlist?
Top Stocks To Buy [Or Sell] Right Now: Nio
There’s no question that Nio (NIO Stock Report) has been one of the best-performing stocks in the EV industry this year. Nio is a pioneer in China’s premium EV market. The company designs and jointly manufactures EVs and innovates in next-generation technologies like connectivity, autonomous driving, and artificial intelligence. The Shanghai-based company has seen an explosive growth of over 1000% in its share prices year-to-date.
From the company’s third-quarter fiscal, Nio reports that its total revenue has reached $666.6 million, which is a staggering 146.4% increase year-over-year. It also posted a quarterly delivery of 12,206 vehicles for its ES8, ES6, and EC6. This represents a 154% increase from a year earlier. With such impressive growth, it is not surprising Nio to continue investing heavily into expanding its production capacity.
Recall that Nio also posted a new monthly record in November by delivering 5,291 vehicles. This is a 109.3% increase year-over-year. With the company reporting December deliveries in a few days, a lot of attention is on NIO stock. You could credit the company’s success is due to its location in China, being the largest consumer market for EVs in the world, and huge financial support from the government. With so many resources under its belt, it has all the reasons to expand its lineup and plans to introduce a new model each year going forward. This will no doubt boost Nio’s sales in the years to come as the demand for EVs increases. With the company’s long growth runway going forward, will you consider having NIO stock in your portfolio?