Top 7 Best Long-term Stocks to Buy in 2021
Whether you are a prolific or novice trader, you want to make a profit out of your investment. And while it is hard to predict markets, the bottom line is that it only goes up. Now, the question is, which are the best long-term stocks to buy in 2020? Well, for more details, read on!
Best long-term Stocks
If you look forward to minting profits in years to come, then you are better off trading long-term. In this section, we have compiled seven stocks that will reap profits year over year. let’s have a look.
1. Shopify (ticker: SHOP)
Shopify is among the leading commerce platforms that allow merchants to sell their products to customers globally. The company was founded in 2006 and had a revenue of $1.58 billion in 2019. It also owns other companies such as Tictail, Oberlo, Handshake Corp., and Tiny Hearts Limited, among others.
The company had a 35% share of America’s online sales and a 1.7% share of global online sales in 2019 making it one of the promising stocks to buy in November and beyond. Over the past five years, the company has maintained steady growth even in the wake of a harsh global economic environment.
This is why buying the Shopify stocks would be the right move if you trade long term. Besides, its gross margins are at a high 60% and its growth in the next five to 10 years remains compelling. And when we look at the current situation as the holidays approach, most consumers are more likely to do online shopping.
Here, Shopify is expected to reap big. In fact, as Facebook (FB) looks to expand its footprint in the eCommerce sphere, its DTC Facebook and Instagram shopping features are dependent on Shopify. As such, as these online shops grow, so will Shopify. This is another compelling reason why it is the best long-term stock to buy today.
2. NextEra Energy (ticker: NEE)
NextEra Energy is an electric utility company that boasts of being the biggest producer of green energy namely solar and wind energy. While its stocks were hit hard by the March market crash, since then, they have been gradually improving.
Besides, the company is only but growing. This is unlike major oil and gas companies in the USA. As more people embrace green energy, the company is poised to grow year after year. Its Florida customer base uses almost half of its 45.5 gigawatts generated electricity.
And the rest? It sells it to other consumers in other states. Not to forget that NextEra wants to increase its production capacity with a 14.4 gigawatts project in the pipeline. There are growing rumors that the company might acquire Duke Energy further cementing its dominance in green energy production in Florida.
3. Facebook (ticker: FB)
Since going public on May 18, 2012, Facebook shares have among the favorite for most investors. And it is for this reason that it was among U.S. News' Best Stocks to Buy for 2020. While it might not be the best choice for a short-term investment, it is ideal for those who look at long-term gains.
Besides, Facebook apps dominate much of the online advertisement sphere, which is a billion-dollar industry. And as the company continues to expand its footprint in e-commerce, the stocks are expected to grow. Also, most users and businesses are using some of its apps for video conferencing and video streaming.
Currently, Google (GOOG), its fiercest rival, finds itself embroiled in lawsuits around the world. This will only improve Facebook’s dominance in the online sector. In fact, consensus expectations are that 2021 will be a rapid-growth year, and revenue is poised to grow 24% and earnings to grow 26.5%.
4. PayPal Holdings (ticker: PYPL)
PayPal is among the top virtual payment companies in the world. Its shares soared 85% in 2020 given the shift to online buying. The company, through its digital payment platform Venmo, will allow its users to trade cryptocurrency soon. The best part: users will be able to buy products with cryptocurrency using their app.
This will only make PayPal grow ten-fold. While Wall Street predicts PayPal to make $4.55 per share in 2021, its revenue is not poised to grow rapidly since it is gradually investing in its business model and products.
This is acceptable since most businesses – large and small – are embracing e-commerce and PayPal wants to take advantage of this by providing them with an easy-to-integrate system in their payment systems. In fact, the company is to spend $300 million on new products.
5. ViacomCBS (ticker: VIAC)
While buying ViacomCBS shares might seem not a good idea, it is an ideal option for long-term gains. Why? Because it is poised to be among the best video streaming in the future. The media giant owns Nickelodeon, CBS, MTV, BET, and others. The company has already secured rights to air NFL from January 2021.
The company also values its shareholders by offering a 21% payout ratio and 3.3% yield in dividend. Through its free streaming app PlutoTV, the company was able to attract at least 26.5 million viewers in the second quarter of 2020.
The company even surpassed its target of 16.5 million paid subscribers and now aims at 18 million by 2021. ViacomCBS will focus on leveraging sports airing rights since sports events accounted for 88% of TV viewing in 2019.
Berkshire Hathaway is a company owned by the world’s renowned investor Warren Buffett. The company manages a range of businesses in finance, insurance, energy, utilities, real estate brokerage, and more. It also invests in stocks of companies such as Apple, American Express, and Coca-Cola co.
The advantage of buying Berkshire Hathaway stocks is that it has a wide portfolio touching at least all aspects of our daily life. This means that it is an extra-secure investment.
7. Walmart (ticker: WMT)
Walmart is referred to as one of the largest brick and mortar stores and logistic companies in the world. Its prices are also pocket-friendly hence attracting more customers both online and offline. Walmart’s quarterly revenue increased to $134.7 billion which was higher than critics predicted.
Besides, Walmart has had a seamless transition from a brick-and-mortar business model to e-commerce. This is because of the presence of 11,400 stores in 26 countries making it possible to offer last-mile delivery to most of its customers.
Fastest growing stocks
Unlike long-term stocks, here, you have to consider growth investing. What is growth investing? You may ask. This is investing in small startups or companies that are expected to witness exponential earing in a short period compared to other players in the market. Most investors prefer growth investing since the returns are impressive. Here are three stocks you can buy now!
· MercadoLibre (ticker: MELI)
MercadoLibre is an Argentinian company that is based in the United States. The company deals with an online auction and e-commerce businesses. It has more than 174.2 million users and spans across most Latin American countries such as Chile, Colombia, Mexico, Brazil, and more. Stock value has seen a 61.5% increase through 2020 thanks to more people using its eCommerce platform.
· Shopify (ticker: SHOP)
Shopify is one of the leading online commerce platforms. Over the past five years, it has witnessed a return of up to 5000% in investment and there are no signs of slowing down. This is thanks to a large number of small businesses using the platform to sell their products. There is also a 48% rise in subscription and 132% in merchant solutions further making the stock a must-buy.
· Tesla (ticker: TSLA)
Tesla is an automotive and energy company based in Fremont California. It is well known for electric vehicles and solar energy. Its shares have seen a 500% improvement in 2020 and it seems things will get better in 2021. Daniel Ives, an analyst at Wedbush predicts that the stock price of Tesla will jump from $500 to $560.
Best value stocks
Value stocks are stocks that trade at a lower price compared to a company’s fundamentals such as dividends, revenue, profit margins, and earnings. They are a favorite to most investors since they predict the price will go up to reflect the real health and value of the company. One of the most notable value investors is Warren Buffett. Here are the three best value stocks you can buy in 2020.
· Brighthouse Financial Inc (ticker: BHF)
Brighthouse Financial is a company that provides insurance cover to more than 2 million Americans. And as more U.S. citizens embrace individual insurance, its shares are expected to grow in 2021. Besides, the company has a robust market presence it targets life sales of up to $250 million in 2021.
· Medifast (ticker: MED)
Medifast is a health and nutrition company that sells products such as weight loss products, healthy snacks, meals, and more. It has a 40% growth rate in stock value and its EPS is expected to grow by 37% by the end of the year. Besides it has a robust 27.1% cash growth year-over-year, which is above average when compared to its competitors.
· NRG Energy (ticker: NRG)
NRG Energy is a power utility company that produces provides ownership, develops, constructs, and operates power facilities. It distributes electricity to more than 3.7 million Americans. The company uses natural gas, coal, oil, nuclear, and renewables to produce 23,000 megawatts of electricity.