Investing in stocks is always interesting, it’s a way to make your money work for you without you having to work for it! The question is always which stock can give you the best bank for your buck? Can we predict which is the best stocks to invest in and which will do well? Not necessarily, but can we come up with an educated guess based on information that we have? Yes, we can! So what are the best stocks for 2021? Considering we’re already in the year about 1-month we have missed a few runners. But there is plenty of more to look for.
Before we start throwing random stocks at you and tell you these are all good investments, keep in mind this is not financial advice. You should do your due diligence when investing and trading. These are ideas for educational purposes.
If you look at investments that will do well, you have to consider, in the current economic conditions, which sectors are expected to do good? Which sectors have the potential for innovation and growth the most in the new decade?
Based on our research, the following industries have a lot of potentials:
- Cloud & Edge
These are based on the current economic standing and the COVID-19 pandemic affecting industries all around. As it stands, the work culture is shifting slightly and there are names who’s resources have not been completely exhausted. Some names, like Zoom Inc. (ZM) have seen the COVID-19 stock pump and now are finding real value. While a lot of names have seen an overvalued pump there could be more to come.
Within each sector, there are names that have great business models and that are anticipated to have a great 2021. Some of which have already started.
In E-commerce, we can see a lot more shopping being done online, it’s inevitable that people have to shop online due to COVID-19 restrictions. By being able to purchase things from the comfort of your own home. E-commerce is a booming industry with some untapped potential. We all know about Amazon. That stock has been gargantuan in the industry.
There are lesser-known names in 2021 that would be good investments. Like Etsy.
Is an online retailer that has a very unique business model. They have created an online community of artisans that share their unique creations with one another in a market place. Not too long ago, Amazon attempted to replicate the business model and bully the company out of the marketplace but did not manage to do so! ETSY stays firm and even gets endorsed by icons like Elon Musk. On average quarter over quarter, ETSY has gained 16.4% over the last 8 quarters. While over the last 8 quarters, sales have increased 126% from $200MM to $451.47MM. Institutional sponsorship has increased from 1208 to 1343.
As seen below ETSY has made quite the move to the upside over the past few months. As it stands now, we could see larger pullback into the $175-$180 area.
In the Cloud & Edge industry, we have seen an increase in the use of cloud technology around large corporations. Along with the advancements of new cloud companies gaining a lot of traction.
CloudFlare Inc. (NET) is one of those cloud companies that deliver a range of network services to businesses around the world. They have a vast array of services such as a cloud-based security solution to secure a range of combinations of platforms. This includes public and private cloud, software as a service application, and IoT devices.
CloudFlare has grown rapidly over the past year alone, increasing its institutional sponsorship 186% to 396 funds from 138 funds. Over the past 8 quarters, we have seen a quarter-over-quarter gain in sales of 49% and gone to $114.2MM from $55MM.
From a chart’s perspective, the stock is up heavily over the past year, just like most names we’ve seen. From here we have pulled back to key support and are looking at this as an area of opportunity. Around $70 this could be a good entry.
Finally, in terms of security. With the rise of online businesses, top security companies should be on the top of your list for the best stocks to invest in right now! Some of the best growing stocks in 2021 are cyber security-based. We have CrowdStrike Holdings Inc on the list as a cloud-delivery security solutions company. It provides endpoint protection in the US and internationally.
CrowdStrike Holdings (CRWD)
The company is known as a Falcon platform that runs through software as a service-based model. It encompasses multiple different security markets, including; endpoint security, IT operations, along with threat intelligence to deliver comprehensive breach protection against sophisticated attacks.
CRWD has grown really impressively over the past 2 years with an average growth quarter over a quarter of 92% in their sales. Which has seen an increase from $80MM to $232MM in sales. They have also made their way to over 940 funds from 200 to gain an impressive 365%!
From a technical perspective, CRWD has gained over 240% year over year. From here we have seen a lot of those gains around the last earnings report which did well. We would like to see CRWD around $180 to $190 for a long opportunity.
Finally, these are just ideas for educational purposes, rather than investment advice. I would do my due diligence before looking to invest in the following companies in 2021. These are great strong stocks for a few years to come considering the economic conditions! If you want more analysis like this
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The information contained in this post is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable for your own financial situation. TRADEPRO AcademyTM is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.