The 2020 stock market year will undoubtedly be remembered as the stock markets faced an unprecedented economic disaster related to the confinements in the still-raging coronavirus pandemic. In this context, it is becoming increasingly complicated to know which stocks to buy. However, there are always interesting opportunities, regardless of the market context.
In this guide, we will explain in detail how to choose the best stocks for 2021, and we will also present you with a list of 10 interesting stock market bets at the moment.
1 – Profitable stock: invest in Apple stock
The profitable Apple stock remains a safe bet. Just like the rest of the US tech scene, the company has had a successful 2021. Containment or not, there seems to be no stopping this giant of phone and media devices and accessories. That’s according to the company’s recent earnings report, which far exceeded market expectations.
Why invest in Apple?
Apple’s revenue grew 11% year-over-year to just under $60 billion. Even more impressive, earnings per share rose to $2.58, up 18%. Notably, Apple announced a dividend of $0.82 per share. In addition, Apple conducted a 4-for-1 stock split, making its price more accessible to small investors.
Apple started the year at $75 per share (including the split). By the end of October, 2020, the share price was just over $116, which represents a 55 percent increase since the beginning of the year. According to its recent earnings report, there is no reason to believe that the upward trend will end soon.
2- Buy Netflix Stock
So Netflix stock has risen very substantially in 2020, posting a 73.5% year-over-year increase. This trend seems to be continuing into 2021, but what about the outlook for the future? The arrival of competition from several players could raise doubts, but Netflix has assets that will undoubtedly allow it to maintain a good lead over its challengers.
The first advantage is the sheer volume of content available on Netflix, which will be hard to match, even by Disney+. The second reason why Netflix stock should continue to rise is that the competition should not dent its market share too much. Indeed, several studies show that most consumers are willing to subscribe to multiple services, so it’s a safe bet that Netflix will be their first choice in any case.
Finally, Netflix is well established in Europe and the United States, but still has significant room to grow in Asia. Netflix’s best performance in the quarter was indeed in the Asia-Pacific region, where it added 1 million new subscribers, accounting for 46% of its total growth in the period.
3-Buy Tesla stock
Tesla is the world’s largest automaker by market value, with a market capitalization of approximately $393 billion, and is one of the world’s leading electric vehicle manufacturers. Tesla designs and manufactures fully electric vehicles, including luxury and mass-market sedans and trucks. It is also a clean energy company that manufactures solar energy generation and storage products.
The year began at $86.05 a share for Tesla. Its price then climbed 394% to $425 at the end of October.
Tesla stock: key figures
Market capitalization: $393 billion
Price to Earnings Ratio: 839
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4- LVMH stock
LVMH, owner of the Louis Vuitton brand among others, is one of the world’s leading luxury goods companies.
Why invest in LVMH?
Despite the health crisis, the group has been able to adapt thanks to online sales. In addition, LVMH’s customer base has not really experienced a drop in revenue due to covid-19, while the Middle East has not been strongly affected by the virus, and China has quickly returned to growth, very positive factors for LVMH stock.
LVMH shares are virtually unchanged at the end of October 2020, trading at 419 euros, but the price has rebounded strongly since the March low of 288 euros.
LVMH share: key figures
Market capitalization: 214 billion euros
Price/earnings ratio: 48