Every year, a new basket of stocks comes out that blows every prediction out of the water and has investors saying, “Man, I wish I invested in that one at the beginning of the year!” With the election now over and a stimulus deal potentially on the horizon, the potential exists for the stock market to grow. As noted by the experts at Money Morning, “…a gridlock is probably the best outcome for the U.S. economy and the stock market.” That, of course, is exactly what we now have.
The time is now upon us when we make our stock market predictions for 2021. As such, here are five stocks to watch for as we head into the new year.
The economic forces are still behind Amazon. Even in a world without COVID-19, Amazon would be a solid buy. As noted by most analysts, its fundamentals are strong, the company is heavily invested in a variety of growing sectors, and it has unquestionably become a household name across the world. However, thanks to COVID-19, people are shifting more and more away from in-person shopping and getting their goods delivered to them. Amazon is expanding, and so is its profit margin. That makes this stock a buy for 2021.
Alibaba is another massive international eCommerce organization, this one operating largely out of China. It also has posted massive earnings over the past year. In fact, its earnings have been even larger than Amazon’s. It also operates a “Singles Day” promotion that sells even more than Amazon’s monstrous “Prime Day” promotion. All of the indicators are that Alibaba will continue to expand, and that makes them a must buy in 2021.
Constellation Brands is at the forefront of a trending new market: Marijuana. Medical marijuana is now legal in 36 states, and the District of Columbia. Recreational marijuana is legal in another 15 states and D.C. This means that the demand for marijuana is expanding, and companies that are positioned to take advantage of this demand will do well. That is Constellation Brands, which also has extensive experience and holdings in the alcohol area. This synergy and their prior track record of success make them a great buy.
Sometimes, that “must buy” stock is an old favorite. This includes Microsoft, which continues to expand. The company has proven itself to be remarkably resilient. It’s technological and consumer offerings continue to be widely used, particularly as COVID forces more and more people to shift to cloud computing. The Xbox is set to produce another generation of consoles and games this year, providing the company with even further revenue. In total, Microsoft seems ready to have yet another great 2021.
The five stocks above have it all: Cutting edge technology, great positioning, and solid financial fundamentals. They are absolutely worth purchasing.