With many hundreds of millions of people around the world looking forward to the end of 2020 and the uncertainty that it has brought to the global arena, investors are likewise turning their sights towards 2021. It has understandably been an up and down year when it comes to investments. It has been difficult to make sense of it all. That is why it is important to look for solid investments that have the potential to bring many of those portfolios back into positive territory relatively quickly. With that in mind, here are some stocks to look out for in early 2021.
People are spending more time at home these days. That means that many people are finding that they have more time to spend on hobbies and crafts. This renewed interest in that sector of the economy is what Pinterest has capitalized on. It is such a simple concept, but they have developed a visual search engine that craft lovers have found so useful. It is possible to find advice on a range of home decor items, fashion, and even beauty. In just the past year, Pinterest has seen the number of active users each month increase by 39%. This means that 416 million people spent a significant amount of time on the site last year. That translates into tremendous revenue growth. This has occurred mostly by way of advertising space.
Blue Apron
Blue Apron is another major company in this sector. While it has spent the last few years losing revenue, that is starting to show signs of a reversal. This is a gourmet meal kit company that will send food right to the doorstep of the consumer. This is yet another way that a company is capitalizing on the fact that people are staying home more and are less willing to go out. Not everyone has the time or the knowledge to cook at home, so this is a concept that appears to be catching on. In the last quarter alone, Blue Apron has seen an increase in sales in the neighborhood of 10%. If this continues, then it is definitely a stock to look out for in early 2021.
Bumble
This is a technology stock that seems to be shunning the Corona Virus slump that many businesses find themselves in. In fact, the Bumble IPO might just be one of the hottest startups to invest in over the course of the coming year. According to Money Morning, “Bumble has been one of the winners of this post-pandemic economy”. That means you can count on this company to make some waves entering 2021. Bumble is essentially a dating app with a twist. They have created a unique spin on the sign-up process that users love. In the post-pandemic world, people will be looking for ways to meet new people without putting themselves out in massive crowds just to do so. Bumble appears to be on the cutting edge of taking advantage of this new movement, so it is an investment that you will want to consider making.
Invitation Homes
It seems that the trend of younger families and couples shunning the suburbs for urban areas is starting to reverse the other direction once again. However, home prices are often out of reach for this segment of the population. This has resulted in high demand for rental homes in areas across the country. Invitation Homes has capitalized on that and is buying up single-family homes at a record rate. They have been known to own as many as 5,000 homes in a city. This translates into enormous revenue growth in areas where the rental market is tight.
Teladoc Health and Livongo Health
With more and more people today turning to Telehealth as a way to see the doctor, it is not surprising that these two stocks are worth watching. In fact, these are two companies that have just recently joined forces. While these companies lost money last year, the fact that they are joining forces speaks well to the future. Look for revenue to increase substantially in the coming year.
These are just a few of the stocks to look out for in early 2021. You just want to make sure that any stock you choose fits within your overall investment strategy. You want to feel comfortable with the mix that you have in your portfolio, so take time in the coming months to determine what moves you want to make as the calendar gets ready to turn the page on another year.
