On the lookout to find the best stocks on the market within 2021? These are some of the best companies to consider buying now.
When looking to buy the best stocks on the market you have to set time and dedication aside to be ready to dig deeper into many elements including evaluating your chosen stocks, to analysing your own personal agenda and budget.
Whilst the list of 21 top stocks to buy in 2021 comprises a mixture of performing stocks taken from various different industries with evidenced results, this will also give you a chance as an investor to look to add diversity to your well-established or growing portfolio.
Besides these performing individual stocks, moving ahead in more challenging times, Index funds are becoming more popular amongst investors and have been over the past decade.
Billionaire Investor Warren Buffett who recently advised and is turning his own thoughts on what he calls ‘less exciting’ yet practical investments, given that these stocks are easier to invest in then individual stocks as they take up less attention yet give you access to most, or if not all, of the top-performing stocks on the market today. Whilst benefiting from lower-costs in reference to management fees.
On this note, two leading U.S Indexes that are strong and powerful Indexes to invest in are The Fidelity 500 Index Fund (FXAIX) and Vanguard Total Stock Market Index Fund (VTSMX).
The reason for these two Indexes being mentioned is that one is the ultimate index stock between the two, which has to be Vanguard Total Stock Market (VTSMX). The index holds over 3,500 individual stocks higher than the original Vanguard 500 index, whilst holding a price tag of around $850 billion and currently holds most of the New York Stock Exchange’s (NYSE) market cap.
But having said that The Fidelity 500 Index Fund (FXAIX), although it is not as great as VTSMX in terms of volume as it holds on average around 510 stocks within the index with over $220 billion in assets, it does set their focuses more so on two of the leading sectors at present, Technology and Healthcare sectors.
Granted the index will not match Vanguard Total Stock Market but it could most definitely perform better than recent years, as the world adapts to new demands which could see its average return of 12.3% increase by much more.
If you are looking for simplicity and ease within your trading journey, Index Funds are your go to. Giving investors returns that some average investors may not be likely to receive when investing solely into individual stocks.
Having mentioned the above, now let's take a look at 21 of the best stocks to buy on the market today. From giant tycoon stocks to smaller-cap stocks, let's explore what these stocks have to offer.
Top 21 stocks for 2021
Mohawk Group (MWK)
Jushi (JUSHF)
EverQuote (EVER)
Fiverr (FVRR)
Lyft (LYFT)
Pinterest (PINS)
Facebook (FB)
Twilio (TWLO)
Intuitive Surgical (ISRG)
Starbucks (SBUX)
AT&T (T)
Adobe (ADBE)
Netflix (NFLX)
Verizon (VZ)
Walt Disney (DIS)
Visa (V)
Berkshire Hathaway (BRK.A)
Alphabet (GOOG)
Amazon (AMZN)
Microsoft (MSFT)
Apple (AAPL)
1. Mohawk (MWK)
To kick start the list of 21 stocks to buy in 2021 starts with the small-cap stock Mohawk Group Holdings Inc (MWK).
Firstly, this stock is up by a whopping 800% over the past year as proven to be a hit with consumers with its portfolio of data analytics. The driving force is set to continue for the stock, leading it to be a strong small-cap stock not to be missed in 2021 as it could just take many by surprise.
The stock helps consumers when searching for unique products to obtain brand data in confirmation through reading reviews and ratings, the brand's AIMEE system is what drives this data to be archivable. MWK is keeping their focus solidly on this avenue, as the stock could seek to potentially partner up with some of the biggest e-commerce companies on the market today which would be great additions for the company to achieve good growth success.
Key Statics:
Increased Revenue over the past 3 years reaching $144.2 million in 2020
Strong balance sheet
The company is almost approaching profitability
Projected revenue forecast of between $340 - $370 million for the current fiscal year, x2 the revenue from 2020.
2. Jushi (JUSHF)
The anticipated ‘Next-Generation’ marijuana company Jushi Holding inc (JUSHF) is a cannabis stock that many investors should become familiar with.
Proving to be a big winner within the U.S cannabis market in 2020 with gains of over 300%, this cannabis stock continues to develop its retail presence with new stores opened within Illinois, making it the 16th store across the U.S. The brand's design of the new standard of sophisticated and modern cannabis is standing strong against its bigger competitors on the market today, in fact, this smaller-cap stock is out beating some of the largest cannabis stocks, leading many to jump on this stocks bandwagon within an industry set to boom.
Key Statistics:
Stock gains of over 300% over the past year
Providing great value in comparison to competitors with a share price of $6.13
Strong demand in CBD products
Revenue increase by 67% with Q3 to $24.9 million
Gross Profit increasing by 64% in Q3 to $12.3 million
Strong balance sheet with $42.3 million of cash and marketable securities within Q3
Confirmation of growth expenditure within 2021 leading to 2022
3. EverQuote (EVER)
The online insurance company EverQuote (EVER) has a vision of becoming the largest online source of insurance policies and is creeping its way into becoming a widespread brand as it currently holds 6% hold within the digital spending sphere according to Nasdaq.
Powered by many insurance policies, the stock maintained a good Q4 in 2020 including one of its leading policies, automotive insurance which increased by 27% year-over-year with revenue of $76.2 million.
On top of automotive insurance, EverQuote offers an array of policies including life, home, rental and health insurance collectively generating strong sales growth.
The shift into online digital insurance and spending is proving to be doubling the stock’s growth rate, potentially into double-digits as it becomes more cost-effective for consumers along with insurance products being more affordable, simpler and personalised to tailor individual consumer needs.
Key Statistics:
Q4 Revenue increasing by 32% YoY to $97.3 million
Q4 Variable Marketing Margin increasing by 46% to $31.9 million YoY
Revenue from Other Insurance Vertices up by 55% $21.1 million, hitting a record 22% in Total revenues
Adjusted EBITDA of $5.4 million in comparison to 2019 at $4.2 million
Full Year revenue Revenue increased to $346.9 million up by 39% YoY
Full Year Variable Marketing Margin increased by just under 48% to $108.6 million.
4. Fiverr (FVRR)
The leading Israeli online marketing platform for freelancing services, Fiverr, has grown to new highs over the past year due to the Pandemic. In the bigger picture, the platform is continuing to be looking like a ‘go-to’ post Covid-19 for freelancers across the globe.
The strong remote working trend was evidenced in the company's recent Q4 report, with the company having an extraordinary year from both active members seeking employment and revenue hitting an increase of almost 80% year-over-year.
Over the past week, the stock pulled back to where the stock now sits at $223.83 below last week's price of $289.74 proving that the stock is good value in terms of its share price.
Key Statistics:
Exceptional Q4 revenue 89% YoY to $55.9 million
Active buyers grew by 45% within Q4 to 3.4 million from 2.4 million in 2019
Non- GAAP Gross Margin in Q4 hit 83.9% increase from 80.8% in 2019
Adjusted EBITDA improved to $4.6 million within Q4 in comparison to 2019 at $3.3 million
Full Year revenue up by 77% to $189.5 million
GAAP gross margin up 82.5% from 79.2% in 2019. Non-GAAP gross margin up 83.7% from 81.0% in 2019
5. Lyft (LYFT)
Lyft, the second-largest U.S car sharing company, has been performing well over the year, despite challenges that have affected the stock.
Aside from the stock offering carsharing facilities, it also offers bike facilities for individuals to explore, mobilised scooters, food delivery service and more.
This is all controlled on the mobile app which is not only at a click of a button for consumers but it also operates in over 620 cities within the US and various cities within Canada, leaving the company potentially looking to expand across more cities both national and international in the future.
This modern stock is providing to be a hit amongst Wall Street analysts for many reasons, but most notable for the stocks future potential post Covid-19.
Due to the impact that the pandemic had on the stock, the stock had to take a hit over the year.
Despite this negative result, it has its positives. The stock has managed to build a stronger position in all forms including financially brought on due to recent challenges benefiting the company within the long-haul outlook. Secondly, the company delivered within Q4 as revenue grew by 14% to $570 million quarter-over-quarter pushing the way forward for this stock to hit new highs in 2021.
6. Pinterest Inc (PINS)
Pinterest has become the social media platform that radiates positivity and has witnessed a history-beating successful year over 2020. Monthly Active Users hit over 100 million over the year, reaching over 450 million Monthly Active Users (MAUs) across the globe.
On top of the success story for Pinterest, Q4 revenue reached an impressive $706 million, a 76% growth-boosting 2020’s total revenue to increase by 48% YoY. Additionally PINS Adjusted EBITDA was $299 million and $305 million respectively for Q4 and overall 2020 showing a 287% change from the same quarter in 2019.
PINS stock is looking to develop future growth plans to provide additional ‘Pinner experiences’ across the globe and continuing to invest wisely in the successful advertisers.
7. Facebook Inc (FB)
The social tycoon Facebook Inc (FB), although differs hugely in terms of size, it is still an exceptional stock to buy with its blossoming growth prospects even at its size.
Over the past year, Facebook within its Q4 period had a Total revenue increase of 33%, Net income increase to 53% YoY and a 52% increase within its EPS against Q4 YoY.
Taking the bigger yearly image into consideration, FB hit a Total revenue increase of 22%, a diluted EPS rise to $10.09 increasing by 57% and Net income increasing by 58% YoY to $29,146.
Both of these social media platforms are steaming the way through providing their own unique qualities and great future growth ahead. Additionally, both are showing good value at present, with Pinterest being the more affordable option yet also has the makings of becoming just as big as Facebook in the future.
8. Twilio (TWLO)
Twilio the cloud communications company that is working its way to the top comes in next.
The long-term outlook for this stock looks strong as it evolves its business streams in both its iconic Data and web service APIs, alongside acquiring various additional companies to strengthen the stock.
The stock's success and acquiring achievements have earned the stock its current title as the leading cloud communication company on the market today.
If you are not too familiar with TWLO, it enables software developers to deliver and receive calls and generate text messages, alongside being able to communicate via web services. As more individuals seek to start their own business avenues brought on potentially by such a challenging year, TWLO stock could and will definitely benefit strongly ahead.
Key Statistics:
Q4 Revenue up 65% to $548.1 million YoY
Non-GAAP income from operations to $12.8 million in Q4 from a Non-GAAP loss of $3.0 million in 2019
Full Year revenue up 55% to $1.76 billion
An increase in Active Customer Accounts in 2020 from 221,000 to 179,000 in 2019.
The stock is aiming for a Y/Y growth of between 44%-47% for 2021
9. Intuitive Surgical (ISRG)
Technology is the future, many will say and this is no exception within the healthcare industry.
Intuitive Surgical (ISRG) has created the future within surgical operations with its impressive masterpiece works of art, the da Vinci Surgical Systems.
This robotic piece of equipment powered by a professional via a console, enables surgeons to be able to get closer to affected areas when carrying out surgical procedures by looking through a lens and operating mechanical arms embedded with operating tools at the tips.
The stock is already storming the way ahead of the game, despite a hold up over the year due to the Covid-19 outbreak. But in clearer times ahead, this piece of equipment is going to be in demand across the globe without question.
Key Statistics:
Worldwide da Vinci procedures up 6% despite the huge disruption of that Covid-19 brought upon the world
326 shipped da Vinci Systems across the globe
Q4 Revenue increased by 4% to $1.33 billion compared to $1.28 billion in 2019
An increase in diluted EPS to $3.02 in comparison to $2.99 in Q4 2019
$6.9 billion in cash, cash equivalents and investments an increase of $508 million during Q4
10. Starbucks (SBUX)
The iconic coffeehouse that is the go-to for many individuals across the world is continuing to be a success.
Not only is Starbucks (SBUX) the world largest coffeehouse on the planet who specialises in being experts within coffee and delivering sweet treats for the sweet-tooths, but this stocks future plans of partnering up with smaller businesses by contributing to expand its community outreach, has added $100 million into a fund to help small business grow. This should draw more consumers to the leading brand.
Over the year SBUX has been hit hard by the ongoing pandemic, witnessing store closures across the globe as many still sit closed today. Despite these difficult challenges Starbucks is sitting nicely to deliver as the world returns to a new normal.
The stock has opened 278 new stores within Q1 21 yielding 4% YoY with China sales increasing by 5% as the country looks to edge closer to normality. Lastly, net revenues down by only 5% which is not bad considering.
11. AT&T Inc (T)
As one of the world largest telecommunications and entertainment businesses, T stock is pushing its 5G network to become its new hot product and looking to outbeat competitors.
T stock is known for its hand in the 5G space as it is one of the largest telephone and mobile providers within the U.S and is currently operating its AT&T5G+ in just under 40 cities within the U.S as of today.
When you compare AT&T Inc to other leading 5G networks, which do not have the experience that this giant stock has, T stock actually sits in a great value with a share price of $26.82 a lot less than T-Mobile US Inc (TMUS). So much so that top Wall Street analysts are also advising this stock as a ‘Strong Buy’ looking ahead.
12. Adobe (ADBE)
The creative software company that has gained hugely over the past 5 years to where it sat at new highs within 2020 is remaining as a stock to invest in.
As individuals are becoming ever more creative and are seeking to explore career paths that highlight the usage of this stocks creative touch up features and much more, saw the stock shoot up in revenue over the year and was confirmed over recent months that digital trends are exploding, projecting at a quicker rate than expected by almost 10 times as much.
Key Statistics:
Q4 record revenue increase by 14% to $3.42 billion YoY
Digital Media segment increased by 20% YoY to $2.50 billion in Q4
Cash flow from operations a record $1.78 billion in Q4
Full Year revenue increased by 15% to $12.87 billion YoY
Annual GAAP diluted EPS of $10.83, non-GAAP diluted EPS at $10.10
13. Netflix (NFLX)
This production stock needs little or small instruction as undoubtedly most will have heard or been an active subscriber of this leading brand.
Netflix (NFLX) will no doubt continue to deliver its unique ‘Netflix Original' documentaries and films looking ahead which have been a roaring success for the brand. Inevitably leading this stock to become the largest media/entertainment company based on market capitalisation in 2020.
In 2020 the company managed to add 37 million new users last year resulting in the company hitting 204 million active paid memberships set across just under 200 countries worldwide.
The giant streaming company will no doubt look set to seek new adventures looking ahead which makes this stock a desired stock for investors to buy into.
Key Statistics:
Paid streaming memberships increased by 23%
Revenue 1% higher than forecast despite the huge challenges brought on by Covid-19
Operating margin of 14.4% an increase above 2019 and above guidance
Operating margin guidance of 20% for 2021
14. Verizon Communications (VZ)
Another strong telecommunications stock to buy in 2021 is Verizon Communications (VZ).
The 5G rollout is becoming more competitive as time moves forward, but it's Verizon’s 4G network that is showing to be more popular amongst consumers over recent times, for reasons such as battery life is short-lived and 4G is fitting the bill for speedy surfing on their devices.
However, 5G remains one of the stocks main focuses ahead as it looks to provide individuals with speed like no other to be able to connect safely and efficiently from across the globe.
On top, VZ seeks to continue its expansion in acquiring new companies to strengthen the company as a whole and its financial position.
Key Statistics:
Increase in dividend payments to $10.02
Cash flow from operations up YoY to $41.8 from $35.7 in 2019
Wireless service revenue up by 1.2% to $13.6 billion YoY
Expected wireless service revenue to increase by 3% within Q1 21
15. Walt Disney (DIS)
Okay, Disney (DIS) stock has been hit tremendously hard over the past year. All theme parks have been reduced to limited capacity or if not closed altogether in parts, cruise liners being grounded to a halt and store closures being impacted across the globe.
But having stated the obvious, Disney has still managed to pull in good results in the form of Disney+ which hit 73 million paid subscribers at the end of Q4 out beating expectations.
The stocks streaming service that is home to all the Disney classics and much more is proving to be a success amongst consumers over the past year and undoubtedly for the years to come.
DIS will not need to overthink too much when the world resumes, as the individuals will flood to Florida, Paris and Asia to visit its popular parks along with holidays resuming, leaving Disney to concentrate on its booming streaming avenue to add to its empire.
16. Visa (V)
The Financial service company Visa (V) has been hitting new highs recently within its digital space.
As the world continues to move forward into an eco-friendly digital environment, within financial services the likes of online banking is becoming the way forward. Online transactions have vastly been pushed on over recent years, more so over the past year due to Covid-19 as it provides a safer and eco-friendlier way of distributing money transactions.
The pandemic brought many negatives for the financial services industry within 2020, especially over the short-term outlook. But looking ahead at the long-term image it should hold nicely for one of the largest payment-processing companies in the world.
Key Statistics:
Payments volume up 4% as of September 2020
Total processed transactions up by 4% to 39.2 billion as of December 31st
Fiscal first-quarter service revenues up 5% to 2.7 billion
17. Berkshire Hathaway (BRK.A)
Many may know this company as simply the company in which the billionaire business tycoon Warren Buffett owns, but it is much more than that.
Although this holding group is not a leading growth stock like all the other stocks on the list, it is made up of some of the best companies in the world including Duracell and Helzberg Diamonds, along with the stock holding significant holdings within many stocks including Bank of America, American Express and Coca-Cola.
All of this factored in with the genesis financial mindset by a gentleman who knows how to make wealth, makes this stock one to buy into and is evidenced as the stock has been hitting record highs this week.
Key Statistics:
EPS up 28.5% year-over-year
EPS beat estimates by 42.3%
Net Investment gains up 246% YoY to $30.8 billion, beating the estimate by 2.3%
18. Alphabet (GOOG)
The tech company which is the parent company to Google is a solid stock to buy in 2021.
The stock had a successful year within 2020, mainly off the back of its second quarter leading out of the year, naturally due to the pandemic that stopped the world from operating normally.
This stopped many advertisers from operating and marketing their campaigns set across all industries causing GOOGL stock to take a hit.
But considering that at the start of the year Alphabet Inc was named as the fourth stock to reach $1 trillion in market value, adding this stock to the exclusive trillionaire club. This means that this stock's potential is undeniable looking ahead, as it seeks to improve and push forward as one of the biggest and leading tech stocks in the world.
Additional positive news for investors is that the stock is sitting at a good value today with a share price of $2,007. Yes, this stock does not come cheap of course but if this stock is within your financial means, it is a strong buy recommendation. Wall Street analysts are also being bullish on this stock, setting this stock with a potential 30% upside with a price target of $2,600 given by Deutsche Bank analyst Llyod Walmsley.
Key Statistics:
Q4 Total Ad Revenue up to $56.9 billion
2020 revenue hitting $182.5 billion at the end of the year
Youtube ad revenue increase to $6.9 billion up by $1.9 billion in Q3
Earnings per share reaching above estimates of $22.30
19. Amazon (AMZN)
Now we are leading to the last three companies that grace the list of top 21 stocks to buy in 2021. These stocks are on another scale in terms of what they have achieved and what the future outlook is looking for these mega-stocks.
The first is Amazon Inc (AMZN). Unless you have been living on a different planet then you know AMZN stock and what it offers or at least know the basic outlook of this company.
This leading tech company offers it all from e-commerce in the form of Amazon.com, digital streaming in the likes of Amazon Prime, Cloud Computing and much more.
From the back off of all of the company's successful avenues, the stock is growing in capacity moving ahead as within recent days AMZN has confirmed that they are looking to open three new offices in Romania creating at least 450 jobs for individuals.
This news is just a drop in a huge ocean for the company when you look at what the company has archived over the years. Leading to 2020 saw the stock hit a record-breaking new high over the festive Christmas period with its $125.6 billion in sales alone.
Again like GOOGL Stock, Amazon stock doesn't come cheap and sits on a $2,951 share price. But this price is good value when comparing it against various leading factors, proving that it is trading at an undervalued figure.
Then take into consideration what Wall Street experts are forecasting for the stock, with such price targets being almost 50% up from where it sits to $4,400, leading to confirmation that the stock is definitely one to buy into and to hold onto for the long-run.
Key Statistics:
Operating cash flow up by 72% to $66.1 billion as of December 31st
Net sales increased by 38% YoY to $386.1 billion
Operating income up to $22.9 billion from $14.5 billion in 2019
EPS of $41.83 up from $23.01 EPS in 2019
Operating income increasing by double from 2019 to $6.9 billion within Q4
20. Microsoft (MSFT)
The leading Microsoft brand is still a strong favourite for many investors.
Not only has the leading tech company benefited from the global pandemic as individuals around the globe adapted to remote working conditions which significantly increased Microsoft's sales in software to the purchasing of various other products.
MSFT has also benefited hugely from its additional avenues too including gaming with the likes of the Xbox consoles.
In 2020, MSFT did well in acquiring various brands to add to this mix and empowering this mega-stock to become even greater.
In recent days the stock has taken a hit within its share price due to a Chinese-hacking scheme which aimed at Microsoft's consumers. It was not just Microsoft that was a victim of such a cyber attack, the Chinese hackers also set their sights on over 200,000 companies spread across the globe.
But off the back of this news, the stocks share price slid to $232.60 where it sits today, down from its highs in February of $244.99.
Despite this recent disruption, the stock is still a solid investment as it continues to deliver like it has done for many years even in uncertain times.
Key Statistics:
Q2 Revenue up to $43.07b from $36.90b in Q2 2020
Operating income at $17.89b in Q2 up from $13.89 in Q2 2020
Gross Margin of $28.88 vs $24.54 in Q2 2020
Diluted EPS at $2.03 against Q2 EPS of $1.51
21. Apple (AAPL)
This last stock to be mentioned, again needs little introduction as it has to be the world's most iconic and well-known brand on the planet today, and for good reasons.
Apple Inc holds a market capitalisation of $1.98 trillion, slightly falling short of the $2 trillion benchmark but in time this mark is more than achievable for the stock.
AAPL stock not only designs and develops products such as iPhones, iPads, PC’s and more but it also accelerates in online services alongside the selling of electronics and computer software.
Arguably each avenue that Apple stock has its hands in, is a successful one at that.
Take Apple Pay for example, the way in which digital transactions are moving forward is going at such a speed it's hard to keep up, this is just one small part of the stock.
In 2020 the iconic brand hit $274.5 billion in revenue leading to confirmation that Apple Inc is the world's leading tech stock based solely on revenue alone. To more recent days, in January 2021 Apple was ranked the 4th largest PC Vendor by unit sales in the world along with being named the most valuable brand in the world.
Key Statistics:
All time record revenue in of $111.4 billion up 21% YoY
Quarterly diluted earnings per share increased by 35% to $1.6, confirming two new records for the company
Record operating cash flow of $38.8 billion
Summary
There you have the list of the best top 21 stocks to buy in 2021.
All of these stocks offer a great combination of value, strong growth prospects, diversity and are great long-term investments. Whether it be that you are new to investing or you are an experienced investor all of these stocks offer it all, if not more, to your collection.
If you are a beginner investor and are looking for guidance as to which stock or stocks to choose from within the list of 21 stocks, companies such as Microsoft (MSFT) is a solid pick and a more affordable option along with it being one of the biggest companies in the world. Additionally, Starbucks (SBUX) stock has a lot to offer especially as we move into more of a positive future outlook.
For an experienced investor who is seeking some new stock ideas, the cannabis industry might be an industry for you to look closer into, as it looks set to explode within the coming year. This leaves Jushi (JUSHF) a top stock pick to add to your collection as it sits within the market at a good price yet has the potential to possibly outrun some of the bigger players within the industry.
Before you begin your journey into investing, it is strongly advised to conduct additional research on your chosen stocks. Despite how well a stock has evidenced positive results, each stock still holds its own risk elements.