To say it’s been a busy news week would be an understatement. An election in Georgia provided clarity as to the direction of the monetary and tax policy of the United States. Millions of Americans received their stimulus checks. The only question now is if more will be on the way.
And we would be remiss to not acknowledge the events that took place in our nation’s capital. There is nothing profound we can add other than to say it is a reminder that we are still a divided nation.
But the markets don’t really seem to care. Which reminds investors that the more things the change the more they stay the same. The markets crave certainty. And despite our deep divisions, the market now has more clarity on what the next two years will look like for corporate America and for investors.
The MarketBeat staff put our blinders on and noses to the collective grindstone to get an initial read on the trends and stories that are starting to shape 2021.
Articles by Sean Sechler
Many people will use their stimulus funds to help them navigate difficult financial situations. However that’s not the reality for many Americans for whom the stimulus checks may provide some disposal income. With that in mind, Sean Sechler was looking at stocks that investors may want to buy with stimulus money. Sechler was also advising investors who may be looking to move their portfolio to value stocks. Not all dividend stocks are equal, and Sechler gave investors three choices that stand out in January. Sechler was also looking at a small-cap, start-up company that may be ideal for aggressive, growth-oriented investors. Nano-X Imaging (NASDAQ:NNOX) is a company that could revolutionize X-ray technology. The company has not had its technology approved by the FDA, but that is both the risk and the reward for this stock.
Articles by Jea Yu
The demand in renewable energy technologies is creating a complementary demand for rare-earth minerals. That helps form the bullish case for Energy Fuel Shares (NYSE:UUUU). The company recently signed a three-year supply contract which may have them processing 10% of the total current demand for rare-earth materials in end-use products. Yu was also looking at the prospects for Nio (NYSE:NIO) in advance of its Nio day event on January 9. Shares are climbing in advance of the event, which could make the stock a sell-the-news candidate. But with the long-term outlook for Nio looking positive, investors may have an opportunity to buy shares at a discount. Yu was also not shy about diving into the Bitcoin discussion, offering investors Marathon Patent Group (NASDAQ:MARA) as a crypto mining stock that is an interesting alternative to directly buying the cryptocurrency.
Articles by Thomas Hughes
Thomas Hughes had his attention on the technology sector. As the new year begins, many of the catalysts that drove tech stocks last year (i.e. social distancing, e-commerce, cloud computing) remain in place and Hughes had four tech stocks to buy based on analyst upgrades. Turning his eye to dividend and value stocks, Hughes recommends Conagra Brands (NYSE:CAG) which is seeing its repositioning efforts pay off which should give investors capital growth to go along with its strong dividend. However Hughes is seeing a different story with Bed, Bath & Beyond (NASDAQ:BBBY). The company was a retail success story in 2020, but that story is beginning to look a little tired in 2021.
Articles by Nick Vasco
Nick Vasco was looking at the luxury fashion retailer Capri (NYSE:CPRI). The segment in general still faces major headwinds at the start of the year. Vasco advises that while shares may seem expensive now, if the stock pulls back 20%, it will look more appealing. Hughes also saw a sizable risk in Pitney Bowes (NYSE:PBI) stock. The company’s stock has been in a tailspin since the announcement that its CFO is moving on and Vasco advises investors to keep the company on your watchlist but wait until the dust settles before hitting the buy button. Vasco was more bullish, in fact very bullish, on Fiverr (NYSE:FVRR). The company is an online marketplace for freelance services. As Vasco says, there is a long-term shift towards remote work and freelancing. That shift may start to slow as a vaccine brings people back to the office, but that may only be delaying the inevitable.
Articles by Sam Quirke
Bank stocks will soon be reporting earnings and Sam Quirke was proposing three bank stocks to buy for consumers to consider as they look to balance out their portfolio. The housing market was one of the shining stars of 2020 and it looks to have momentum going into 2021. One reason was the way it adapted to the new digital reality. Quirke is looking at two stocks that look to continue from the digital age even as we (hopefully) exit the pandemic. Zillow (NASDAQ:ZG) is the leader in the online housing marketplace and even though prospective buyers may start to do more than virtual tours; their search is likely to start on Zillow. Quirke was also looking at Docusign (NASDAQ:DOCU). The company is projected to be a pandemic loser, but the social distancing measures that were caused by the pandemic have simply accelerated the business case for the online signature company.
Articles by Chris Markoch
Chris Markoch was bullish on Walgreens Boots Alliance (NYSE:WBA) ahead of earnings. The pharmacy chain is reporting strong pharmaceutical sales as it continues to come out of the pandemic. Turning his attention to pharmaceuticals of a different kind, Markoch was considering the effect that Democrat control of both houses of Congress may have for cannabis. Any nudge towards legalization should bode well for Constellation Brands (NYSE:STZ). Markoch was also making a case for Simply Good Foods (NYSE:SMPL) the company that is associated with the Atkins brand. As many consumers make resolutions to eat healthier, Simply Good Foods makes sense as a short-term stock to buy.
Articles by Steve Anderson
In 2020, Tesla (NASDAQ:TSLA)
continued to dash the hopes and dreams of short sellers and, as Steve Anderson wrote, 2021 is looking like it could be more of the same. At least one analyst has raised its price target
on the company which could send the stock even higher. Another company benefiting from a positive analyst report is Nvidia (NASDAQ:NVDA)
. The company received a bullish report
from Citigroup (NYSE:C)
as it prepares to present at the Consumer Electronics Show (CES). Anderson continued to look at stocks that are benefiting from analysts’ upgrades by looking at D.R. Horton (NYSE:DHI).
The homebuilder stock was a strong performer in 2020 and analysts foresee continued growth as the housing market remains red hot
Best Growth Stocks - Best Stocks to Buy Now
The stock market has been growing since the New York Stock Exchange opened its doors in 1817. Sometimes, a stock will outpace the rest of the market in terms of growth. These skyrocketing securities—or the ones that analysts expect to skyrocket—are called growth stocks.
What Every Investor Needs to Know About Growth Stocks
Growth stocks are a great opportunity for an investor to make money in the stock market, but you’ve got to know what you’re going to buy or sell. A good understanding of growth stocks will help you get there.
At the beginning of a bull market, you can almost choose stocks randomly and find yourself a winner. Now that we are entering the current bull market's ninth year, growth stocks have appreciated considerably. It's becoming far more challenging to find stocks with real opportunities for appreciation.
Growth companies are still largely outperforming their value counterparts in the United States and the rest of the world largely because of low-interest rates, improved corporate earnings, and global economic growth. Over the last five years, the S&P 500 Growth Index has returned 14.22% per year. During the same time, the S&P 500 Value Index returned just 12.94%.
Now that the bull market is now nearly a decade old, stocks have become very expensive. Value investors are largely sitting on the sidelines, and growth investors have a hard time figuring out where the remaining growth opportunities exist.
If you are looking for growth stocks in an increasingly small field, we have identified the 10 best growth stocks to buy right now based on their expected earnings growth over the next several years. These companies are all growing rapidly and will likely see double-digit earnings growth next year.
View the "Best Growth Stocks - Best Stocks to Buy Now".