Many claim that the stock market is one of the most unpredictable markets in the world. It can either result in huge profits or huge losses for investors with absolutely no warning. For this reason, most people wait to invest in high risk stocks until they’re older.
The stock market is a swamp of too many stocks, bad brokers, and pressure from the media. You have to go into it with eyes wide open with a solid plan that you have never changed. While I don’t have the perfect strategy, I do know some research that will help you find the best stocks to invest in 2021.
Amazon.com
- Industry: Internet retail
- Market value: $1.7 trillion
- Dividend yield: N/A
Apart from a few companies, such as Zoom Video (ZM), which went from relative obscurity to becoming an integral part of the daily routine for most of corporate America, few companies benefitted more from the lockdown economy than Amazon.com (AMZN, $3,354.72). Nearly anything you could imagine buying could be fulfilled by Amazon and could be on your doorstep in generally less than 24 hours.
But here’s the thing. While Americans are indeed returning to the malls, they’re likely to continue buying a much larger percentage of their purchases online than they did before the pandemic. That trend was already firmly in place, and the pandemic simply sped it up.
Wedbush, who rates AMZN at Outperform (equivalent of Buy), writes that “Revenue growth should decelerate in 2021 but remain above 2019 levels” – in other words, growth might slow slightly from last year’s windfall levels but still eclipse pre-pandemic levels. Meanwhile, “Amazon’s profitability should expand as it grows operating expenses more slowly than revenues. Amazon Web Services, Fulfillment by Amazon, and ads should drive steady margin expansion, with Prime memberships driving overall retail revenue growth.”
AMZN is one of the best stocks to buy for the remainder of 2021 … and likely for years to come.
Uber Technologies Inc.
Following that, we have Uber Technologies, a tech company with services that include ride-hailing, food delivery, package delivery, and freight transportation. The company has operations all over the world and has capitalized on the boom in the food delivery business during the pandemic. With over 100 million active platform consumers in nearly 10,000 cities across approximately 71 countries where Uber is available, the company is a titan in the delivery industry.
In August, it reported its second-quarter financials for 2021. Diving in, its gross bookings reached an all-time high of $21.9 billion, up by 114% year-over-year. It also reported a net income of $1.1 billion and revenue of $1.91 billion for the quarter. This is driven by Uber’s investment in recovery by investing in drivers and it has made strong progress with monthly active drivers and couriers in the U.S. increasing by nearly 420,000 during this quarter. All things considered, should investors be on the lookout for UBER stock?
Upwork (NASDAQ: UPWK)
Upwork is a tech play that’s focused on connecting contractors and those in need of contract work in the gig economy. Those who need articles written, graphics created, websites built, voiceovers added to videos, and a long list of other services will find talented experts in these crafts on the company’s website.
Of course, Upwork needs to make money in the process, and it makes plenty. In order to use the platform, freelancers must agree to the following fee schedule:
- Freelancers pay 20% of their billings to the company for the first $500 paid by a new customer.
- From $500.01 to $10,000 in billings of the customer, the platform charges a fee equal to 10% of billings.
- Finally, for all billings of a single customer with total billings of $10,000.01 or more, the company takes a 5% cut.
Prior to the coronavirus, the gig economy was already taking off. Consumers who have dreamed of working from home finally had a way to do so. Then, as the world shut down, the gig economy boomed.
Businesses deemed to be nonessential were forced to close their doors. This left many workers without a job and standing in unemployment lines of record length. Many of these displaced workers began looking for work-from-home opportunities, leading to a flood of demand for Upwork and its competitors. Moreover, this increased demand is likely to continue.
There have also been major changes for employers. Employers now have access to talent around the world, not just in close proximity to the office. What’s more, companies are finding that not only do workers prefer to work remotely, but they’re more effective when they do, according to Business News Daily. COVID-19 led countless companies to realize this, many of which say they’ll never bring employees back into the office, according to CNN.
Analysts absolutely love this stock because of the growing work-from-home trend and Upwork’s ability to capitalize on it, demonstrated by its significant revenue and earnings growth. According to TipRanks, four analysts cover the stock, all of whom rate it a Buy. Price targets range from $57 and $76 per share, averaging out to $67.50 and suggesting the potential for nearly 50% gains compared to current levels. Granted, you shouldn’t blindly follow Wall Street analysts, but these ratings are encouraging.
The bottom line here is simple. Upwork has seen tremendous growth already, and considering the flourishing of the gig economy and the trend toward remote work, that growth is likely to continue. As a result, the stock is one to pay close attention to.
Realty Income
Getty Images
- Industry: Retail real estate
- Market value: $27.3 billion
- Dividend yield: 4.0%
Amazon might very well be taking over the world. But brick-and-mortar retail is far from dead. In particular, service businesses will always need physical locations. Amazon can’t deliver a haircut or clean your teeth (at least not yet). And high-traffic retail, such as pharmacies, convenience stores and gas stations won’t be going anywhere any time soon.
This brings us to another stock to buy for the remainder of 2021 and beyond, Realty Income (O, $70.15).
Realty Income is a “triple-net” real estate investment trust (REIT), which means its tenants are responsible for paying all taxes, insurance and maintenance. The landlord’s responsibility here is limited to cashing the rent checks and not much else.
O owns a portfolio of more than 6,700 properties spread across 50 states, Puerto Rico and the United Kingdom. It boasts 630 distinct tenants encompassing 58 separate industries. Its top five tenants, accounting for just over 22% of the portfolio, include 7-Eleven, Walgreens (WBA), Dollar General (DG), FedEx (FDX) and British supermarket chain Sainsbury’s.
Some of Realty Income’s tenants, particularly in the movie theater and gym spaces, got zinged badly during the pandemic. But these tenants are recovering as life returns to normal. This should only continue in the second half of 2021.
Now, let’s talk dividends. If you need an income superstar to pay your bills in 2021 and beyond, Realty Income is easily one of the best stocks to buy. It pays its dividend monthly rather than quarterly; it has made 612 consecutive monthly dividends and raised the dividend for 95 consecutive quarters.
Microsoft Corporation
Microsoft is a tech titan that produces personal computers, software, and other consumer electronics. It recently launched its latest iteration of the beloved Windows operating system, Windows 11. It boldly claims that with this new OS, a new era for the PC begins as it is packed with new features and improvements. MSFT stock has enjoyed gains of over 38% in the past year alone.
On October 7, 2021, the company announced that it has acquired Ally.io to help revolutionize how organizations use technology to bring deeper connections to work and results in the hybrid world. Ally.io is a leading objective and key results (OKR) company and will be joining the Microsoft Viva family as part of its employee experience platform (EXP). EXP is designed to help companies embrace the new digital work life. The OKR category is a fast-growing and emerging space and Ally.io is leading the way as one of the most loved tools on the market. Customers find the Ally.io experience flexible, easy to use with quick time-to-value. For these reasons, should you consider buying MSFT stock?
Conclusion:
There are some stocks which will go up for a very long time and help me and you to make a huge amount of money. It is better to invest in such stocks and enjoy your good luck rather than making risky investments every day. These are the stocks which will give you high returns in short period of time.