It would be an understatement to say that 2020 was an interesting year in financial markets. But 2020 is behind us, and we must look to the future. What will be the best action in 2021? Now what comes to our mind is which stocks are likely to perform well in 2021 and 2022. This article is devoted to some fairly best stocks and also explains to you why investing in these stocks in 2021 could well be a wise choice.
Sectors To Focus On In 2021
As for the sectors most affected by the health crisis, everyone agrees that they will need more time to restore their health as their incomes recover. Another sign that stocks in other industries that have performed poorly are expected to rise in 2021, is that tech companies are expected to experience slower earnings growth, which means the time is right. may have come for other sectors to thrive.
Energy and Infrastructure:
The energy sector is undergoing radical change. Alternative and renewable energy sources are particularly on the rise and this trend is expected to continue in 2021. The Europeans are setting an example when it comes to the use of renewable energy and this time around it seems that Americans also stand ready to take the plunge towards a more sustainable world with a Biden administration that intends to invest billions in sustainable energy and infrastructure.
Although wind power and solar power represent only 8% of the electricity used worldwide, this use is expected to increase exponentially over the next few years. According to an investigation report by the IEA (International Energy Agency) nearly 40% of the world’s electricity production should be produced by wind or solar energy by 2040. Investing in companies that produce sustainable energy should arouse the enthusiasm of many investors.
Action Ticker Price Market capitalization
Atlantica Sustainable AY $ 39.17 $ 4.34 billion
Clearway Energy CWEN $ 26.48 $ 5.51 billion
NextEra Energy BORN $ 77.2 $ 151.42 billion
Healthcare:
The health care sector was brutally confronted with the pandemic. You might think COVID-19 is a blessing for businesses in this industry, but for most of them the health crisis has been ruthless. Comfort surgeries (operations planned in advance because there is no medical emergency) generate significant benefits for device manufacturers and hospitals, but many operations have been postponed or canceled due to the coronavirus.
In addition, many people whose elderly have canceled their care to avoid exposure to the coronavirus. Although problems with this virus persist, encouraging progress in vaccine research has raised some optimism among investors. Some businesses may benefit from a return to normal life. There are therefore many stocks in the healthcare sector that could be among the best stocks for 2021.
Action Ticker Price Market capitalization
Stryker SYK $ 262.67 $ 98.96 billion
Teleflex TFX $ 397.91 $ 18.6 billion
UnitedHealth Group A H $ 417.7 $ 394.18 billion
The Technology Sector:
Technology has clearly shaped modern civilization and the global economy over the past 25 years. Companies are constantly innovating and keep inventing new methods to create new technologies and improvements to make people’s lives easier. In all sectors including healthcare, security or energy, education, airline, technology has helped improve many things. This trend is expected to continue over the next decade. While Wall Street analysts say a slowdown in the growth of many tech companies cannot be ruled out, this should not prevent the sector from being among the best sectors of 2021. Stocks of tech companies will continue to be in high demand.So it’s no surprise that a few stocks in the tech sector are on the 2021 best stocks list.
Action Ticker Price Market capitalization Amazon AMZN $ 3,656.64 $ 1,840 billion
Apple AAPL $ 148.56 $ 2,480 billion
Microsoft MSFT $ 289.67 $ 2,180 billion
Financial Sector
Banks are a great indicator for measuring the health of an economy, especially if you are interested in the health of the world’s largest banks such as JPMorgan, Citigroup, Wells Fargo, Credit Suisse, etc. The recovery in the markets has not been favorable to the financial sector, with most companies in this sector lagging behind companies in other sectors. Stocks of companies in the financial sector are currently cheap. Growth or earnings could therefore be conducive to healthy growth in their stocks.
Banks are also a good investment when the economy begins to recover as interest will gradually rise giving them a great opportunity to take advantage of a recovering economy. Most banks also recorded positive results during the peak of the pandemic. The financial sector could therefore be one of the big winners of 2021. Certain stocks of the financial sector should be included in the ranking of the best stocks for 2021.
Action Ticker Price Market capitalization
Bank of America BAC $ 37.7 $ 323.06 billion
Wells fargo WFC $ 44.59 $ 184.32 billion
Citigroup VS $ 66.71 $ 137.89 billion