The last year has been a rollercoaster ride in the investing world. Few could have foreseen a global pandemic in their forecasts for 2020. However, as the year comes to a close and the dust settles, there are interesting new investment opportunities. Using a stock portfolio tracker can help you identify market trends and help you choose future investments that will bring solid returns in the New Year.
Using a Stock Portfolio Tracker to Choose Stocks
Do not be tempted to buy every laggard stock that plummeted in the aftermath of the pandemic simply because they are cheap. Remain cautious and choose your investments wisely. Remember, these are simply suggestions from senior analysts at Forbes and other investing sites. It is always a good idea to get a second opinion before making any large investments. So, discuss your personal strategy with your financial advisor if you have questions or concerns.
There is still a lot of uncertainty surrounding how the vaccine will affect public sentiments towards loosening social distancing measures and when that will happen. No one can say how long it will take before people feel comfortable returning to some sense of pre-COVID-19 normalcy and participate more in the economy. This uncertainty also extends to stock market picks. However, these 8 stocks seem to have considerable potential in 2021.
Top Stocks to Watch with a Stock Portfolio Tracker
Amazon.com (AMZN)
Amazon has experienced massive growth since its origin as a bookseller. Furthermore, it has completely changed how retailers and consumers interact. Right now business is booming due to increased online sales. Its expansion into e-commerce allowed it to profit during the economic downturn. Amazon said they expect fourth-quarter sales to be between $112 and $121 billion in revenue. While this is great news for current stockholders, shares are expensive. However, using a stock portfolio tracker to identify downturns. Buying shares in the dips could greatly benefit your portfolio in the long term.
Shipping Stocks
Both UPS and FedEx are on many investors’ radars due to increased revenues from online shopping. Both companies have shown significant growth in the past 3 years. Although, there is much debate over which one is the better buy. Each one has established strategic partnerships and undertaken expansion projects. Whichever company you choose to invest with, they are well-positioned to post profits in the months ahead with strong domestic and global supply chains.
Airlines
While many of us are staying home and traveling less frequently, we are all looking forward to the day when we can move freely again. In the aftermath of safety precautions to limit the spread of the virus, passenger travel has drastically fallen. The industry’s revenue fell 90% during the second quarter, and stock prices dropped 50%. However, there will always be a need for air travel. Additionally, it is a promising indicator that none have declared bankruptcy. Most major airlines managed to raise private funding to withstand the current conditions. The increased need for shipping and delivery services has also bolstered returns.
If you decide to buy shares in the airline industry, be aware that it may take years to return to previous numbers. But, with the right stock options, you could position yourself for huge profits in the future. Discount carriers like Southwest are more likely to succeed because the market is price sensitive. Moreover, its streamlined operations have maintained steady profits and will like to continue to see more returns when the market begins to rebound.
The Walt Disney Co. (DIS)
Even though Walt Disney stocks are not technically profitable, they have excellent long-term moneymaking potential. With its media networks, studio entertainment, parks, cruises, and other products, any shares in the company are bound to see returns for years to come. Additionally, Disney’s new streaming services completely change the company’s valuation. Disney+ already has 87 million subscribers worldwide, and corporate executives say they expect between 230-260 million by 2024. If you use a stock portfolio tracker to review the performance of its competitors, you will see that Walt Disney Co. is a sound stock option to keep in your portfolio.
Alibaba Group (BABA)
The Alibaba Group is a Chinese multinational tech company and e-commerce giant of Asia. It is currently worth $725 billion and showing rapid growth. Its sales increased by 30% in the last quarter alone. While the pandemic was spreading and disrupting daily operations in China, the company’s stock continued to increase in value. The most notable revenue growth has been in the cloud computing division with 60% last quarter, making up 10% of its overall sales. Buying shares in the Alibaba Group gives American investors exposure to the Chinese market. Due to its sheer size, it is likely one of the safest bets for people who want to enter into the Asian markets.
Qualcomm (QCOM)
Qualcomm has maintained strong performance and was one of the market’s top growth stocks this year in spite of the pandemic. Currently, its stock price is up 140% from March. Furthermore, November boasted record quarter financial reports with $8.35 billion in revenue, which is up 73% from last year. The company remains an industry leader in designing and manufacturing chipsets for mobile phones. Many of the largest mobile phone manufacturers like Apple and Samsung use the chipsets in their products. When they release the 5G smartphone processor Snapdragon 888, it will power most flagship Android devices in 2021.
Sonos (SONO)
This American electronics company specializes in wireless audio technology. Sonos has already partnered with more than 100 different companies to offer music services. Investing in this company’s stock is a good bet since the market demands for smart home technology will likely increase. Smaller businesses in the connected home sector are also possible acquisition targets for larger companies trying to break into and gain footing in the market. The outlook for wireless technology is very positive since there will continue to be a steady demand for their products as we enter 2021.
Spotify Technology (SPOT)
This last pick is a bit more of a wild card option. Spotify is on the cusp of posting consistent profits, so you must assess the risk before investing. However, it has enjoyed increasing popularity with a 29% jump in the number of users in the last year alone. Now more than 320 million people subscribe to their services, 144 million of which are premium subscribers. The company is banking on the social experience of sharing music and the future of podcasts. Unfortunately, some analysts suspect it may take another year or two before it breaks into the black. The good news is that partnerships with companies like Sonos could accelerate this timeline.
Choosing a Stock Portfolio Tracker to Stay Informed
You should always make informed decisions when it comes to investing in stocks. A stock portfolio tracker is an easy and accurate way to track your holdings and watch market trends. The best part is that you can also create manual portfolios and test out strategies. Here are some of the top stock portfolio trackers to get you started.
Use Investment Apps
Here are some of the platforms you can use for investing.
| Platforms: | Fees and Minimum: | Best for: |
|---|---|---|
| Robinhood | Free | Beginner investing |
| Acorns | $1 per month | Spare change investing |
| The Motley Fool | $99 for the first year. | Stock advising |
Read More
- Is the Stock Market Open on New Year’s Day 2021?
- The Motley Fool Stock Advisor Update: 49% Returns and Counting
- How to Make Money With These COVID-19 Stock Plays
Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing a life abroad had strengthened her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is dedicated to either working with children, she also enjoys good friends, good food, and new adventures.
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