The Best Stocks to Buy as We Approach 2021
2020 has been a tumultuous year for markets, but some clear winners have emerged that may pose an opportunity for savvy investors.
2020 has stretched the volatility of the stock market, but that has been more of an advantage than a disadvantage to shrewd investors. When looking for good stocks, it is always advisable to ignore the short-term volatility and focus on the long term. We have discussed the best stocks to invest in as we approach the end of 2020 with both short-term and long-term performance in mind:
1. AMZN stock
AMZN stock has been on one of the wildest growth curves of the past couple of years. In November 2019, it traded at $1,700 per share. Now it is up to more than $3,340.
AMZN’s earnings are predicted to grow 20%, meaning a share could go for a whopping $4,000 in 2021. The reason for this is that the pandemic is still around, and people prefer online shopping to in-person store visits. Secondly, the company is expected to keep on with its tradition of running ahead of the festive season. Thirdly, online shopping is high on the rise with or without the pandemic, and Amazon is the clear leading light in the industry.
Despite the pandemic, Semiconductor builder Broadcom has kept on with its dividend growth for the ninth year in a row. The stock’s short-term value has also been tipped to continue rising with an increase in demand from telecom and cloud data center service providers being recorded. The 5G iPhone surge and WiFi and RF content increases are also expected to spark a wireless industry growth from October going forward.
3. DiamondPeak Holdings
Lordstown Motors and DiamondPeak Holdings made a merger agreement back in August. Despite the combination still awaiting completion, the news set off a 140% growth for the DiamondPeak stock.
It may seem too late to make a move, but the latter months of the year are expected to cause another sudden change in the growth trajectory, with Lordstown Motors now having a whopping $675 million to finance its growth.
4. Wheaton Precious Metals
Gold has always been risky, but these are different times. The federal and state governments have imposed stay-at-home orders for the first time in decades, and that has made the Wheaton Precious Metals stock quite intriguing. Lack of monetary weapons in the Federal Reserve prompts the adoption of accommodative policies, and that sounds like great news for gold.
5. Smith & Wesson Brands
The US election date is fast approaching, and with Joe Biden and Kamala Harris going into the race with a good chance of unseating Donald Trump and Mike Pence, there are fears among gun advocates that the pair will look to enact new gun legislation. That, of course, would be a win for Smith and Wesson, and while the fears alone are expected to spark a surge, it is a win for the Democrats that is expected to cause the ultimate stir for the firearm manufacturers.
The stock market is not one to abide by expert predictions. However, if 2020 doesn’t have any more surprises in store for us, the above stocks should deservedly be somewhere up in your list of considerations.