The Best Growth Stocks to Watch in 2021
Wondering which stocks you should watch in 2021? With the stock market expected to gain further strength in the coming year, investors are looking for smart investments and the best growth stocks to put their money in. As we move into 2021, there are several stocks that are likely to benefit from the changing market environment and offer good growth prospects. Here is our pick of the best growth stocks to watch in 2021.
Why Should You Invest in Growth Stocks?
Growth stocks are a great alternative to value stocks and they can give your portfolio a boost and provide high returns if picked correctly. Investing in high-growth stocks brings several advantages, and these investments can help you to grow your portfolio with more potential returns. In addition, because growth stocks generally have higher volatility, you can take advantage of the market swings and increase your profits.
Best Growth Stocks for 2021
Here are some of the best growth stocks for 2021:
- Alphabet Inc.
Alphabet Inc is one of the most successful tech companies of our time, and is a great place to put your money in 2021. Alphabet is the parent company of Google, and its stock has been on a steady climb throughout 2020. With a large number of new products in development, Alphabet looks set for a bigger boost in 2021.
- Novavax Inc.
Novavax Inc is a biotechnology company that specialises in the development of vaccines, and as the world continues to grapple with the pandemic, it looks set to rise in 2021. Novavax has seen a growth surge recently as its coronavirus vaccine enters human trials, making it a great stock to watch.
- Microsoft Corporation
Microsoft Corporation is a popular tech company with a solid track record and the stock has a potential to yield higher returns in 2021. Microsoft continues to expand its cloud products and services and with a stable financial position, the stock is likely to offer good profits.
- Apple Inc.
Apple is another big tech giant and its stock has seen big gains in 2020 and is likely to see further growth in 2021. Apple has recently revamped its products including Macs, iPhones, services such as its music streaming and is expected to make further investments.
- Advanced Micro Devices
Advanced Micro Devices is a semiconductor company making processors for PCs and servers. Being a long-time competitor of Intel, its stock has seen a steady uptrend and surged recently as its 7-nanometer Ryzen chips were released.
- Amazon
This should come as no surprise as Amazon has been firmly on the rise in the past few years and is one of the companies that has benefited the most from the pandemic. Amazon’s stock has surged over 50% in 2020 and if the trend continues, it could be one of the best growth stocks of 2021.
- Tesla Inc
Tesla has been a major hit with investors in recent years and its stock has surged tenfold in 2020. With Tesla expected to reveal several new products, its stock continues to be an attractive option for investors.
- Square Inc
Square Inc is a payments platform based on mobile technology and has seen an exponential growth in recent years. It has weathered the market downturn of 2020 very well, and its stock surged almost threefold in the last twelve months.
- Real Estate Investment Trusts
REITs are a great way to diversify your portfolio by investing in real estate and their stock has seen a surge over the past few months. With more people working remotely, the rent and lease industry is unlikely to suffer and REITs can give you good returns in 2021.
- Cruise Lines
As the world begins to open up, the cruise lines are likely to benefit greatly as more people find their way back to these ships and take much-needed vacations. A resurgence in the cruise business means more people would be able to sail again in 2021 and stocks such as Norwegian Cruise Lines and Carnival Corporation & Plc are likely to be in limbo for some time.
Know your Risk Management When Investing
Before you invest, it is important to understand the risks and develop a strategy to minimize the chances of losses. You should always do your own research and learn about the stock, industry and the company you are investing in before you make a commitment. Furthermore, diversifying your investments and keeping track of the markets can help you to reduce the risks and increase your returns.
Although the stock market is unpredictable, with the right investments and wise decisions, you can reap good returns and make the most of 2021’s bull market. The stocks we mentioned above are a great starting point and they promise to give you good returns and higher growth prospects. With that said, we hope you make the most out of 2021 and understand the risks involved. Good luck!