Last year was a wild ride for the market, with the fastest selloff and recovery ever in the stock market. Market conditions are currently unlike anything we’ve ever seen before, and with so much uncertainty, many investors are rightfully on the hunt for some hot stock tips. Which companies will thrive in 2021? Who’s going to outperform the market? Expect companies that thrive on innovative technology and digitization to dominate in the coming months, as well as a handful of companies that are in, or poised to pivot into, emerging industries. Companies like what? Read on!
● Intuit (INTU)
● Innovative Industrial Properties (IIPR)
● British Petroleum (BP)
● Airbnb (ABNB)
● Amazon (AMZN)
Intuit (NASDAQ: INTU)
Everyone probably knows Intuit best from their commercial TurboTax software, but Intuit is, in fact, a much larger corporation that offers a variety of financial services, including Quickbooks, an accounting program for businesses, and Mint, a personal finance tracking app. In recent years the company has made several savvy acquisitions, including TSheets in 2017 and, more recently, Credit Karma in February of last year. This aggressive growth strategy is reflected when looking at the Intuit stock price history, with the company’s stock up 37% in the last year and over 343% in the last five years. Momentum investors will fall in love with Intuit stock price history, which is sure to continue well into 2021 as Mint continues to catch on among millennials looking to tune up their budgets.
Innovative Industrial Properties (NYSE: IIPR)
When there’s a gold rush, sell shovels and pickaxes. No company personifies that age-old maxim more than Innovative Industrial Properties. This high yield REIT invests in properties related to the cannabis industry, which is currently exploding in price and set to benefit massively as more and more US states legalize it. Investors that still want a piece of the profit without direct exposure to highly volatile cannabis companies with questionable balance sheets will love this company, whose status as a landlord means that it captures all the upside of the industry and has some downside protection, too. The result is a sky-high growth REIT that has appreciated over 900% since its 2016 IPO and yet still packs an impressive 2% dividend yield. For investors looking to beat the market on capital appreciation while still pocketing dividends that exceed the market as well, IIPR is the hottest pick.
British Petroleum (NYSE: BP)
This pick might come as a surprise to some investors, but due diligence on this company yields some interesting results. Known most for being a giant in the oil industry, BP’s stock has been hammered by pessimism surrounding the future of the commodity, as well as waning public opinion on oil companies. In recent years the company has taken aggressive measures to modernize itself and aims to decouple from the oil and gas industry and venture into green tech. BP currently is venturing into solar, wind, and geothermal power. As the company has stated, it believes oil demands have already peaked and can only go lower from here. BP’s size will make it a serious contender in the green energy field. Its market cap of $79B dwarfs existing green companies like Enphase Energy ($23B) or Sunpower ($7B). For investors looking to bet on a greener future while taking home a massive 8% dividend yield, look no further than this British giant.
Airbnb (NASDAQ: ABNB)
The hospitality industry wasn’t so much disrupted by the pandemic as it was simply crushed. Revenues collapsed, leaving many hospitality stocks deflated. When an entire industry is in chaos, look for a company that is not only surviving but growing. That company is Airbnb, whose revolutionary premise proved safer during the pandemic and thus protected much of their profits. By using existing homes instead of large commercial properties, Airbnb is able to greatly reduce the downside risk to their business while allowing travelers to avoid potentially dangerous check-ins or high-traffic hallways with shared air ventilation. This strategy also allows massive growth at quicker speeds. Currently, Airbnb has more worldwide listings than the rest of the hospitality industry combined. Although the company’s stock price had already doubled since its IPO in December 2020, there’s still plenty of room for upside potential as Airbnb continues to grow its business and expand revenues almost daily, while its competitors still struggle to win back the foot traffic they had pre-Covid.
Amazon (NASDAQ: AMZN)
For the last decade, it’s been almost impossible to make a list of hot stock tips without including Amazon. This company’s stock has already created countless millionaires and billionaires, and its growth shows no signs of stopping. The monstrous revenue streams this company has to endow it with the cash flow to do nearly whatever it wants. For the first time, quarterly revenues for the company surpassed $100 billion and are still accelerating despite Amazon already dominating the market. The majority of homes in the US have an Amazon Prime membership, which gives them access to technology, groceries, supplies, business solutions, medicine (and yes, even books) all straight to their doorstep in two days or sometimes even less. All the while, AWS is quickly becoming one of the largest and most valuable web services companies in the world. In 2021, an investment in Amazon is almost akin to an investment in the economy itself.
These are the five hottest picks for expert investors in 2021, and although no investment is a guarantee, these five companies are looking better than ever. Each is not only a major player in their industry but still fast growing and innovative. This is vital in a society where innovation is accelerating more than ever, and market conditions can change in the blink of an eye. Expect these companies to not only yield a fantastic profit when times are good but also to weather any downturns and come out of the other end still on top.