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7 Stocks to Support Your New Year’s Resolutions in 2021

Posted on Friday, January 8th, 2021 by MarketBeat Staff
7 Stocks to Support Your New Year’s ResolutionsAfter a year like 2020, many Americans figure that just getting to 2021 was enough. But for many people, the start of a new year still means making resolutions. And while many Americans are still waking up to Groundhog’s Day, there is hope that things will look dramatically different in September than they do right now.

Some of the most popular resolutions include losing weight, exercising more, or taking steps to get our life and/or business more organized. And many pure-play companies lean into these trends and are doing well.

As an alternative to this, you can also invest in companies that are not pure plays but can still benefit from consumers looking to start fresh. Owning these stocks helps you manage your risk. If the trend holds, you can ride the wave. On the other hand, if the wave turns into a ripple, the stocks have other catalysts to get them through.

In this special presentation, we’ll take a look at both of these categories. We’ve got several pure-play companies that let investors buy stocks in companies benefiting from these trends. We’ll also give you a few stocks that fall in the latter category.

These are stocks that you might buy at any time and for many reasons. However, they present excellent buys as the new year begins.

#1 - Peloton (NASDAQ:PTON)

Peloton Interactive logo

Peloton (NASDAQ:PTON) began trading publicly in September 2019. At that time, the maker of connected fitness products was best known for a holiday ad that sparked a controversy that seems silly today for many reasons. But there has been perhaps no company that benefited more directly from the Covid-19 pandemic than Peloton.

With fitness centers and gyms closed, consumers were looking for a way to maintain their fitness routines. And Peloton’s line of bikes, treadmills, and ellipticals was able to provide consumers with an entertaining, convenient, effective, and most importantly … an at home experience.

As it turns out, many consumers are enjoying their experience which benefits Peloton since the company generates significant revenue from monthly subscriptions associate with its equipment. In fact, in the most recent quarter that the company reported earnings, it reported 1.33 million total connected fitness subscriptions which was more than double from the same quarter the year prior. That’s the kind of thing that gets investors excited.

Another thing that investors love is market share growth. Peloton is seeking to do this through a planned acquisition of Precor. The company announced in December that is was buying its competitor in a deal valued at $420 million.

About Peloton Interactive
Peloton Interactive, Inc provides interactive fitness products in North America and internationally. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include touchscreen that streams live and on-demand classes. The company also provides connected fitness subscriptions for multiple household users, and access to all live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes. Read More 

Current Price: $157.81
Consensus Rating: Buy
Ratings Breakdown: 24 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $135.39 (14.2% Downside)



#2 - Lululemon (NASDAQ:LULU)

Lululemon Athletica logo

Another pure play for fitness and weight loss resolutions is Lululemon (NASDAQ:LULU). Lululemon shares similar qualities to Peloton. It has a dedicated, passionate consumer base. And with its acquisition of Mirror, the company now has an at-home fitness component to add to its established brand of athleisure – a category the company has essentially invented.

Deutsche Bank analyst Paul Trussell recently reiterated his Buy rating for LULU stock. Trussell also stuck by his $402 price target, which would represent a gain of nearly 10% from the stock’s current level. And right now, Lululemon may be even more attractive because the stock has dipped slightly in the last month. Perhaps investors were expecting lighter holiday sales.

There is some concern that LULU stock is overvalued or “priced for perfection.” Those that argue that point would say that any hiccup in the home fitness trend would be a negative for the company. There are two counter arguments. First, is the consideration that home fitness is not just a bubble. And the second is that athleisure wear is now mainstream.

Investors will get a better feel when the company reports earnings the week of January 11.

About Lululemon Athletica
lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women, men, and female youth. It operates through two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training, as well as other sweaty pursuits; and athletic wear for female youth. Read More 

Current Price: $348.48
Consensus Rating: Buy
Ratings Breakdown: 22 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $382.75 (9.8% Upside)



#3 - Apple (NASDAQ:AAPL)

Apple logo

Moving away from the pure play fitness stocks, I’ll offer up Apple (NASDAQ:AAPL) for your consideration. Yes, the company is still best known for its iconic iPhone. And the recent release of the iPhone 12 should be reason enough to give the stock consideration. However as a play on fitness resolutions, Apple merits consideration.

In the last year, Apple has been seeing growth in its wearables sector. And that sector includes its Apple Watch which has become a category leader over competitors like Fitbit (NYSE:FIT). The attraction of the Apple watch is that the user doesn’t have to be wearing the device to track their workout. Apple also has multiple versions of its Apple Watch that makes it accessible for consumers of different income brackets.

Apple recently split its stock which makes AAPL stock attractively priced. The bottom line is you can buy AAPL stock to support the Apple Watch you receive as a holiday gift and benefit from owning the stock even if your fitness goals fall a little short.

About Apple
Apple Inc designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch, and other Apple-branded and third-party accessories. Read More 

Current Price: $127.14
Consensus Rating: Buy
Ratings Breakdown: 26 Buy Ratings, 14 Hold Ratings, 3 Sell Ratings.
Consensus Price Target: $119.52 (6.0% Downside)



#4 - Dick’s Sporting Goods (NYSE:DKS)

DICK

The last “fitness” stock I’ll ask you to consider is Dick’s Sporting Goods (NYSE:DKS). Dick’s was a pandemic winner for multiple reasons. The company was able to capitalize on the trend towards athleisure wear. The company has a private label brand, CALIA, which is now the company’s second-largest women’s brand in the company.

The company also benefited from the desire of individuals to go outside. Whether that was running shoes or golf clubs, Dick’s was able to provide several different avenues to draw consumers to its store or to its website. And make no mistake about it; being able to build its digital brand is a key to the company’s 2020 success. And it also sets the table for the company going forward.

Dick’s is also a company that is appealing for investors who look to invest according to their values. The company took a controversial stance when it banned gun sales at all of its locations. This did have an effect on its business but that has appeared to subside as Dick’s has substituted firearms for higher margin products that is helping the company become a four-season sporting goods store.

If you’re a fan of momentum investing, DKS stock is up nearly 13% in the last month.

About DICK'S Sporting Goods
DICK'S Sporting Goods, Inc, together with its subsidiaries, operates as a sporting goods retailer primarily in the eastern United States. It provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear and accessories. Read More 

Current Price: $66.33
Consensus Rating: Hold
Ratings Breakdown: 10 Buy Ratings, 12 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $55.57 (16.2% Downside)



#5 - Home Depot (NYSE:HD)

The Home Depot logo

The best reason I can give you to invest in Home Depot (NYSE:HD) is that the company didn’t need the pandemic to have a solid year in 2020. However the pandemic helped. Home Depot leans into the category of resolutions to have a more organized home.

We’ve all been spending a lot of time in our homes. And believe it or not, there may still be a need to cut the clutter. And many homeowners are realizing that they want to make better use of the space they have. After all, an open floor plan is great for entertaining. It’s not as desirable when you’re looking for the privacy of a home office or classroom.

Home Depot became a strong omnichannel story in 2019 and that carried right through in 2020. The company is not immune from competition. Lowe’s (NYSE:LOW) has upped its digital game. However both LOW stock and HD stock have been essentially mirror image performers which suggests there’s plenty of room for both competitors.  But the one advantage a company like Home Depot has is that it has many items that consumers can’t get from Amazon (NASDAQ:AMZN).

About The Home Depot
The Home Depot, Inc operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers. Read More 

Current Price: $275.59
Consensus Rating: Buy
Ratings Breakdown: 24 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $294.29 (6.8% Upside)



#6 - The Container Store (NYSE:TCS)

The Container Store Group logo

If you’re looking for a stock that looks more like a short-term pure play on home organization, I offer you The Container Store (NYSE:TCS). This is a stock that was a late bloomer in terms of pandemic winners. The show got a fourth quarter boost when Netflix (NASDAQ:NFLX) began streaming episodes of “Get Organized With the Home Edit.” On “Dumb Money Live” in September, co-host Jordan McClain labeled the show “a giant infomercial for The Container Store” and investors have rewarded the stock accordingly.

TCS stock is up 195% in the last four months and 16% in the last month. With many Americans expected to be staying indoors throughout the winter months, it would seem the company will continue to have catalysts for the next couple of quarters.

The Container Store needed the shot in the arm as the company had to shut many of its brick-and-mortar stores due to the pandemic. However in the last quarter, the company did post year-over-year increases in profits and revenue.

About The Container Store Group
The Container Store Group, Inc operates as a retailer of storage and organization products and solutions in the United States. It operates through two segments, The Container Store and Elfa. The company provides approximately 11,000 products designed to help customers. Its merchandise category includes Custom Closets, including elfa, Laren, and Avera branded products and installation services, as well as closet lifestyle department products; storage, long-term storage, and shelving; kitchen and trash; office, collections, and hooks; bath, travel, and laundry; gift packaging, seasonal, and impulse; and others. Read More 

Current Price: $11.99
Consensus Rating: Hold
Ratings Breakdown: 0 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $10.00 (16.6% Downside)



#7 - Shopify (NYSE:SHOP)

Shopify logo

Some people make resolutions for themselves or their homes. But what about their businesses? And particularly what if your resolution is to start or grow your business? That’s the case that I’ll make for Shopify (NYSE:SHOP).

Small business owners that are looking to have an online presence are turning to Shopify because it is a “one-stop shop” for building an online store, processing payments, and integrating inventory and shipments.

So not only can Shopify help a business get off the ground, it can help the business stay organized and in control.

SHOP stock is looking a little expensive and analysts have a consensus rating of “Hold” with a consensus price target that suggests the price may have a downside of over 10%.

However, the company is reviewed by over 30 analysts and has a wide range of price targets. And the stock is up about 6% in the last month suggesting that it has some momentum.

About Shopify
Shopify Inc, a commerce company, provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in Canada, the United States, the United Kingdom, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing. Read More 

Current Price: $1,170.47
Consensus Rating: Hold
Ratings Breakdown: 14 Buy Ratings, 15 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $1,057.72 (9.6% Downside)

 

No matter what the year 2020 brought to you, the best thing about a new year is the opportunity to have a fresh start. If you’re an investor, you may be looking at the market and wondering if and when the party is going to end. And the reality is that anybody that tells you that they know is lying.

But one way you can prepare your portfolio for whatever comes next is not to fight the trend. Or, in the case of new year’s resolutions, don’t fight consumer behavior. While this may not be a sure-fire way to select stocks, it is a great way to find stocks that are likely to be seeing their shares increase, if only on a short-term basis.

Investing in momentum stocks is different from buying “widow and orphan” stocks. And some of the stocks in this presentation contain more risks than others.

7 Clean Energy Stocks With A Bright Future

The debate over renewable energy (i.e., clean energy) versus nonrenewable energy derived from fossil fuels was always going to come down to dollars and cents. Since 2016, things haven’t been easy for renewable energy companies. As the United States pushed towards energy independence, the Trump administration imposed tariffs on the industrial segments. The sector was subject to less favorable policies by electricity regulators. Plus, competing energy sources like coal received more help.

But a funny thing happened over the past four years. Renewable energy companies continued to grow. This is continuing a pattern that renewable sources of energy are becoming cost-competitive for businesses. And that is increasing demand.

One of the best parts of this sector for investors is that there are many ways to play the sector. In addition to solar and wind, hydrogen stocks are becoming an intriguing way to invest in renewable energy.

So rather than looking at this election as a choice between bad and good, investors should really be viewing it as a case of “good or better.” Because no matter who wins the election, clean energy stocks will continue to grow.

View the "7 Clean Energy Stocks With A Bright Future" Here.







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