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Stocks to buy in 2021
2020-12-23 • Updated
Looking back at 2020
Stocks are generally classified as riskier assets. Investors tend to flow capital into stocks amid the risk-on market sentiment, and in the opposite, withdraw capital out of stocks amid the risk-off period. For instance, most stocks dropped significantly after the coronavirus outbreak and surged after the speed of the virus spread slowed down and countries started recovering. This example demonstrates the general movement in the stock market.
Covid-19 cuts both ways
Speaking about specific stocks, Covid-19 brought more benefits than losses for some of them. Online shopping, deliveries, streaming, tech, and biotech stocks skyrocketed amid the coronavirus lockdown. For example, Amazon managed to hit 3 500 in September, while its pre-pandemic levels were around 2 200. At the same time, airline, tourism, entertainment, and hospitality stocks plummeted. Some of them are still on the dips.
Forecasts 2021
The vaccine rollout encouraged investors to stream their money into riskier currencies and stocks. But what stocks have the highest potential to grow now?
Druckenmiller’s stock list
Billionaire investor Stanley Druckenmiller shared the list with the stocks to buy in 2021. It contains Microsoft, Amazon, Alibaba – stock giants that nobody doubts will grow further no matter what. More interesting picks are Netflix, Disney, and Starbucks. Disney will reopen its entertainment parks and shops, therefore its revenue should surge. Elsewhere, its new streaming service Disney+ will add tailwinds to the stock. Starbucks was hit hard by the lockdown. However, it has managed to go through the storm. Since shops are reopening, we may expect the resurgence in sales.
More ads!
Alphabet or Google is the one that worth considering buying now. The company was hit significantly by the coronavirus as its main profit source is advertising. Many companies stopped buying ads amid the pandemic as they needed money for more necessary purposes. Now the company is back on track, that’s why it’s a good time to invest in it.
The price has touched the support of the 50-day moving average of $1 700, therefore it should reverse to the upside. It may meet a barrier at the key psychological mark of $1 800. The next resistance of $1 830.
More entertainment and coke!
Coca-Cola was damaged by the pandemic as half of its sales come out from restaurants, stadiums, and other out-of-home locations. Since the US businesses have started to reopen, we might see soon growth of this stock. However, Europe and especially the UK imposed stricter restrictions now as the new coronavirus variant appeared there. Hopefully, it won’t spread around the world.
Coca-Cola is moving in an ascending channel. If it jumps above the high of mid-November at $54.50, the way up to the next round number of $55.50 will be clear. Support levels are $51.50 and $50.00.
No cash!
PayPal would be a smart investment as e-commerce continues developing. Indeed, Covid-19 changed the way customers buy products and services. Now, most prefer to make purchases and get services online, therefore digital payments will be in high demand.
PayPal is edging higher to the key psychological level of $250.00. If it crosses it, the way up to the next round number of $260.00 will be clear. Support levels are at the recent lows of $210.00 and $200.00.
This list isn’t full, we will share new insights with you further! Check our website for more fresh ideas!
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