There is a strong possibility of economic recovery in 2021. But the new year doesn’t promise less uncertainty than 2020, so investors should remain cautious, as always.
Use these companies to think about opportunities and decide if you invest your money or not. Important Tip! Always research and understand a company before you buy its stock.
Here are some highly promising companies that you can buy their stock in 2021.
Tesla has enjoyed growth in 2020 and there is a bright future for the Palo Alto electric car maker. Its shares price has skyrocketed more than 650% on a year-to-date basis (one of the top growth stocks of the year).
The company will capitalize on the growing electric vehicle (EV) market in the coming years. Some industry experts believe that the demand for EVs around the world, (particularly in China), would help Tesla to grow its future revenue.
Tesla’s strategy to establish itself as a leading player in the EV market will benefit the company in the coming years. So, for those who want to be a part of its success, this is the right time to invest in this high-value stock.
Nvidia stock value has increased by more than 125% this year (2020). The financial performance of the company has surpassed analysts’ expectations.
The California-based company specializes in manufacturing graphics processing unit chips, which are used in artificial intelligence (AI) and the gaming industry, among others.
AI spending is expected to hit $110 billion by 2024. Also, the gaming industry is booming at a rapid pace. Nvidia will benefit from the boom.
Walt Disney performed well this year but most of its theme parks stayed closed (Pandemic) and affected its revenue.
But Disney+ streaming platform has performed very well this year. One year after its launch, the video-on-demand streaming service has over 86 million subscribers (Amazing Growth).
The progress of its streaming service will help the company to boost its revenue.
Zoom Video Communications stock’s value has skyrocketed nearly 500% so far this year. Millions of people signed up for its online video-conferencing platform (pandemic effect).
The Zoom video platform has a simple and user-friendly interface, which is one of the key reasons behind its recent success. Some people think that its growth may slow down as the pandemic ends.
But video meetings, virtual learning, and online interactions are not going to end anytime soon. Zoom is expected to do well in the coming quarters considering the recent stock momentum and revenue growth.
Alibaba Group Holding was performing well this year until it experienced a couple of major setbacks. Alibaba is facing scrutiny from the Chinese government (it’s about monopolistic practices).
However, the company’s growth rates still look strong. It is leading the Chinese e-commerce market with a controlling share of 56%. Second in China is JD.com, which holds nearly a 17% share of the market.
Alibaba also beat analysts’ expectations in its latest quarterly report. Its second-quarter revenue jumped 30% on a year-over-year basis, marking the strength of its business despite the Covid-19 pandemic.
Alibaba stock is expected to go up after addressing the challenges it is facing right now.
ServiceNow stock’s value grows about 96% on a year-to-date basis, as demand for its products and services remained elevated during the year. The software company also reported better-than-expected results in its latest quarterly report.
Its subscription billings for the third quarter came in at $1.08 billion. Also, its big customers, with an annual contract value of more than $1 million, increased 25%
ServiceNow will continue to perform well in 2021. Most analysts have a “Buy” rating for the stock with an average price target estimate of $ 575 per share, suggesting that the company’s share price will go up in the coming quarters.