Have you been investing in stocks for a while? Are you looking for an expert opinion on best stocks to invest in 2021? Here is a guide for you. We have included some stocks that have recently made a special comeback in this article. You can also find out the reason why we chose these stocks over others.
Investing in stocks isn’t easy and even professional investors couldn’t make it work every time. But if you prepare yourself well and see the big picture, there are certain stocks that do give you a lot of returns. This is true of investing in stocks 2021 as well.
Naked Brand Group Limited (NASDAQ:NAKD)
Number of Hedge Fund Holders: 4
Naked Brand Group Limited (NASDAQ:NAKD) is one of the oldest firms that market swimwear for men and women. The company was founded in 1946. Today, the business has evolved to include intimate apparel in addition to swimwear. Interest in the stock has soared since the firm announced in late August that it had reached a merger agreement with an unnamed company. The stock rallied more than 18% after the announcement of the deal and is up 451% over the past twelve months.
Naked Brand Group Limited (NASDAQ:NAKD) is placed eleventh on our list of 11 best Robinhood Markets, Inc. (NASDAQ: HOOD) stocks to buy according to hedge funds. Perhaps one reason the stock has rallied this year is the digital transformation of the firm. Initiated in January this year, the company has focused on strategic purchases in the ecommerce space to drive revenue growth with free cash flow.
At the end of the second quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $618,000 in Naked Brand Group Limited (NASDAQ:NAKD), the same as in the previous quarter worth $206,000.
BlackBerry Limited (NYSE:BB)
Number of Hedge Fund Holders: 20
In an era of smartphones that have ditched the iconic keyboard of Blackberry devices of the past, the firm has capitalized on the encryption and security features it boosted on those phones, transforming itself into a cybersecurity firm. It is placed ninth on our list of 11 best Robinhood Markets, Inc. (NASDAQ: HOOD) stocks to buy according to hedge funds. The firm narrowly beat market expectations on earnings per share and revenue in the second quarter.
BlackBerry Limited (NYSE:BB) also recently unveiled plans to team up with professional services company Deloitte to provide original equipment manufacturers with the software services they need for their Internet of Things (IoT) devices. The global market for IoT devices is expected to be worth more than $165 billion by the end of this year, growing at a compound annual growth rate of over 13%.
Out of the hedge funds being tracked by Insider Monkey, Canada-based investment firm Fairfax Financial Holdings is a leading shareholder in BlackBerry Limited (NYSE:BB) with 46 million shares worth more than $570 million.
NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 34
NIO Inc. (NYSE:NIO), the Chinese electric vehicle manufacturer, has earned the right to be called the “Tesla of China” after consecutive quarters of delivery and sales growth. It is placed seventh on our list of 11 best Robinhood Markets, Inc. (NASDAQ: HOOD) stocks to buy according to hedge funds. On October 1, the firm reported that it had delivered 24,439 vehicles in the third quarter of 2021, an increase of over 100% year-over-year. The third quarter was also important because in September, the firm delivered the first batch of vehicles to Norway, expanding its presence in Europe.
Apart from hedge funds, market analysts are also bullish on the firm. On October 7, investment advisory Goldman Sachs upgraded NIO Inc. (NYSE:NIO) stock to Buy from Neutral with a price target of $56, implying upside potential of 65%. Analyst Fei Fang touted the launch of new EV models by the firm, noting that they had “strengthened Nio’s brand equity in the premium space”.
At the end of the second quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $2 billion in NIO Inc. (NYSE:NIO), up from 28 in the preceding quarter worth $1.3 billion.
Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and The Walt Disney Company (NYSE:DIS) are some of the top stocks on Robinhood, in addition to NIO Inc. (NYSE:NIO).
In its Q2 2020 investor letter, McLain Capital, an asset management firm, highlighted a few stocks and NIO Inc. (NYSE:NIO) was one of them. Here is what the fund said:
“Nio, Inc. (NIO): It’s stock up 360% since the beginning of June on no news, and one of our more troublesome short positions, the Chinese electric vehicle manufacturer is valued at a whopping $17bln on trailing revenue of only $1.1bln. In 2019, the business ran a -17% gross margin, a -140% EBITDA margin & burned ~$1.5bln in cash in 2019. The stock has become one of the most popular stocks among retail traders with approximately 250,000 accounts holding the name just on the popular Robinhood trading platform.”
Microsoft Stock
Microsoft is getting more traction above its 50-day moving average. It is currently in a buy zone after clearing a new flat buy point of 305.94. It is actionable as high as 321.24.
But keep in mind that Microsoft reports fiscal first-quarter earnings Tuesday night.
The relative strength line for Microsoft stock is near record highs. MSFT stock has gained around 39% since the start of the year, which crushes the S&P 500’s gain of 21%.
Microsoft is one of a handful of U.S.-listed stocks with trillion-dollar market caps. It was the second stock to achieve the feat, after old rival Apple (AAPL). Both now have valuations above $2 trillion.
Microsoft stock’s strong price action has boosted its IBD Composite Rating to a near-perfect 98. The biggest key to Microsoft’s high score is its excellent earnings performance, which is reflected in its EPS Rating of 94. Microsoft earnings growth has accelerated for the past four quarters. Nevertheless, price performance is also strong.
Ford Motor Co. (ticker: F)
Electric vehicle stocks are extremely popular among younger investors, but legacy automaker Ford is once again the most popular holding among Robinhood users in the fourth quarter. Earlier this year, Ford committed to investing $30 billion in EV and autonomous vehicle technology through 2025. However, the company reported a 27.4% drop in sales in the third quarter as the global semiconductor shortage continues to weigh on the auto industry. Ford trades at a much more compelling valuation than leading EV stocks, and its electric Mustang Mach-E SUV recently won Car and Driver’s 2021 EV of the Year award.
Tesla Inc. (TSLA)
Robinhood users are going all-in on the auto industry of the future, and Tesla has a huge first-mover advantage in EVs. Robinhood users helped drive a 700% gain for Tesla shares in 2020, but Tesla shares are up just around 10% so far in 2021. Earlier this month, Tesla reported 241,300 vehicle deliveries in the third quarter, topping analyst estimates by more than 20,000 vehicles. However, the stock is up less than 2% since the deliveries beat, and Tesla skeptics question just how much future growth is already priced into Tesla shares at a $800 billion market capitalization.
Sundial Growers Inc. (SNDL)
Cannabis stocks such as Sundial Growers have tremendous long-term upside potential, especially if federal recreational legalization happens in the U.S. However, Canadian and international cannabis sales growth has disappointed in recent years, and Sundial has reported negative revenue growth and net losses in each of the past four quarters. As the company continues to burn through cash, it has been forced to sell shares of stock to fund operations. Since the beginning of 2020, Sundial’s outstanding share count is up a whopping 1,800%, and the stock is down about 28% in the past six months.
Amazon.com Inc. (AMZN)
Online retail and cloud services giant Amazon has been rising in popularity among Robinhood users in the past three months. Amazon continues to grow and monetize its massive user base, and it is also expanding into additional high-growth businesses such as advertising. Advertising reportedly makes up the majority of Amazon’s “other” sales, which were up 87% in the most recent quarter to $7.9 billion. Amazon shares are uncharacteristically down around 13% in the past three months, partially on concerns that rising labor costs will eat into near-term profits. However, Robinhood users clearly see the pullback as a buying opportunity.
Conclusion
Tired of the ups and downs of the cryptocurrencies? If you are looking for investment ideas that can yield profits in short duration then crypto trading may not be the best idea that you should follow right now. Crypto trading is enjoying rapid growth but it is not so stable when it comes to long term profits. Don’t get me wrong, if you can take advantage of the volatility, trade properly in order to hedge risks, and stick to the right long-term strategy you can make huge profits in this domain. But instead of dealing with all the hassle involved in crypto trading, why don’t you invest in coins that can pay monthly dividends? I’m talking about stable coins here. The coins that are highly stable in value