There’s no single stock that’s best for all investors as all our needs are different – and what’s best for you might not be best for someone else. No-one can say for certain which direction stocks will go; these are ideas for your own research and should not be taken as financial advice.
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What are the best stocks of 2021?
These 20 US-listed stocks are well worth watching in the year ahead.
U.S. stocks are continuing on an impressive run so far in 2021. The NYSE Composite is up more than 6% year to date, 8% over the past year and 77% above the Covid-driven low of March 2020. The Nasdaq Composite has done even better, up more than 10% YTD, 44% over the past year and 104% off those lows.
If you’re feeling bullish about the stocks in 2021, but you’re not sure where to start, we’ve put together a list of 20 Nasdaq and NYSE stocks that may be worth watching in the year ahead.
How to pick stocks
Unfortunately, there’s no single winning strategy to filter “good stocks” because the most important consideration is your own circumstance. Besides, the best stocks are those that perform well in the future, and past performance is no guarantee. If 2020 taught us anything, it’s that stock market predictions are often wrong.
But that doesn’t mean you shouldn’t do your homework or be afraid of investing. Whether you care more about short-term capital gains or long-term dividend growth, it’s important to know whether a stock is performing well, making a profit, paying dividends or going backwards.
Stocks to watch in 2021
To help identify stocks to watch for 2021, we used Finder’s proprietary algorithm to filter Nasdaq- and NYSE-listed companies that have strong fundamentals. We take into account historical prices, dividends, revenue growth, (low) price volatility and profit margins, which might indicate a quality stock.
To avoid smaller, more speculative stocks, we only include companies with a market cap of more than $10 billion. In order to better compare historical data, we filtered out stocks that have been listed for less than five years. This methodology no doubt filters out some good stocks, and not making this list is not a negative.
This also doesn’t mean these are the best stocks for you. Always do your own research, and chat with a professional when in doubt.
The algorithm was last updated 27 January 2021. This list and data was compiled Feb. 15, 2021.
How did we pick this list?
We use a proprietary algorithm that rates stocks based on price performance, profit, revenue and dividends. The information provided is general in nature, not personal financial advice, and your personal objectives, financial situation or needs have not been taken into consideration. The companies displayed on this page may not be the best for you, and you’re encouraged to do your own research. Always remember that past performance is no guarantee of future results. Investments can go up and down, and we do not guarantee the performance of or returns of any investment. For more information about our algorithm, head to our stock ranking page.
1. Ubiquiti (UI)
Ubiquiti develops networking technology for service providers, enterprises, and consumers, and consumer electronics for professional, home and personal use.
- Communications equipment
- Exchange: NYSE
- Dividend yield: 0.45%
- Price-earnings (P/E) ratio: 43.96
2. eBay (EBAY)
eBay is an Internet retail marketplace that connects buyers and sellers worldwide.
- Internet services
- Exchange: Nasdaq
- Dividend yield: 1.14%
- Price-earnings (P/E) ratio: 17.80
3. Logitech International (LOGI)
Logitech International is a manufacturer of computer peripherals and software.
- Consumer electronics
- Exchange: Nasdaq
- Dividend yield: 0.73%
- Price-earnings (P/E) ratio: 21.74
4. Thermo Fisher Scientific (TMO)
Thermo Fisher Scientific provides analytical and other instruments, laboratory equipment, software, consumables, reagents, instrument systems, chemicals, supplies and services worldwide.
- Laboratory equipment
- Exchange: NYSE
- Dividend yield: 0.17%
- Price-earnings (P/E) ratio: 31.78
5. Genmab A/S (GMAB)
Genmab is an international company specializing in the creation and development of therapeutics for treatment of cancer.
- Biotechnology
- Exchange: Nasdaq
- Dividend yield: N/A
- Price-earnings (P/E) ratio: N/A
6. Horizon Therapeutics (HZNP)
Horizon Therapeutics is a biopharmaceutical company that develops and sells medicines used to fight rare and rheumatic diseases.
- Biotechnology
- Exchange: Nasdaq
- Dividend yield: N/A
- Price-earnings (P/E) ratio: 24.72
PerkinElmer (PKI)
PerkinElmer produces analytical instruments, genetic testing and diagnostic tools, medical imaging components, software and medical instruments.
- Medical technology
- Exchange: NYSE
- Dividend yield: 0.19%
- Price-earnings (P/E) ratio: 23.18
8. The Scotts Miracle-Gro Company (SMG)
The Scotts Miracle-Gro Company manufactures, markets and sells consumer lawn and garden products.
- Agricultural inputs
- Exchange: NYSE
- Dividend yield: 1.01%
- Price-earnings (P/E) ratio: 28.77
9. Marvell Technology Group (MRVL)
Marvell Technology Group designs, develops and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits.
- Semiconductors
- Exchange: NYSE
- Dividend yield: 0.45%
- Price-earnings (P/E) ratio: 25.86
10. KKR & Co. (KKR)
KKR & Co. is a private equity and real estate investment firm specializing in direct and fund of fund investments.
- Private equity
- Exchange: NYSE
- Dividend yield: 1.12%
- Price-earnings (P/E) ratio: 14.46
11. Microsoft (MSFT)
Microsoft develops, licenses, and supports software, services and devices worldwide.
- Software-infrastructure
- Exchange: Nasdaq
- Dividend yield: 0.91%
- Price-earnings (P/E) ratio: 36.49
12. NVIDIA (NVDA)
NVIDIA designs graphics processing units used in gaming and other industries.
- Semiconductors
- Exchange: Nasdaq
- Dividend yield: 0.11%
- Price-earnings (P/E) ratio: 97.79
13. QUALCOMM (QCOM)
QUALCOMM develops technologies and products used in mobile devices and other wireless products and connected devices worldwide.
- Semiconductors
- Exchange: Nasdaq
- Dividend yield: 1.76%
- Price-earnings (P/E) ratio: 25.27
14. Bio-Rad Laboratories (BIO)
Bio-Rad develops specialized products for the life science research and clinical diagnostics markets.
- Medical devices
- Exchange: NYSE
- Dividend yield: N/A
- Price-earnings (P/E) ratio: 5.67
15. Chegg (CHGG)
Chegg provides digital and physical textbook rentals, online tutorin, and other student services.
- Education and training services
- Exchange: NYSE
- Dividend yield: N/A
- Price-earnings (P/E) ratio: N/A
16. HDFC Bank Limited (HDB)
HDFC Bank is India’s largest private sector bank by assets.
- Financial services
- Exchange: NYSE
- Dividend yield: 0.52%
- Price-earnings (P/E) ratio: 42.57
17. Taiwan Semiconductor (TSM)
Taiwan Semiconductor Manufacturing is a semiconductor contract manufacturing and design company.
- Semiconductors
- Exchange: NYSE
- Dividend yield: 1.56%
- Price-earnings (P/E) ratio: 38.70
18. BeiGene (BGNE)
BeiGene develops and commercializes cancer therapeutics.
- Biotechnology
- Exchange: Nasdaq
- Dividend yield: N/A
- Price-earnings (P/E) ratio: N/A
19. Garmin (GRMN)
Garmin designs, develops, manufactures, markets and distributes navigation, communication and information devices.
- Scientific and technical instruments
- Exchange: Nasdaq
- Dividend yield: 1.87%
- Price-earnings (P/E) ratio: 24.56
20. Hologic (HOLX)
Hologic develops and manufactures diagnostics products, medical imaging systems and surgical products for women’s health.
- Medical instruments and supplies
- Exchange: Nasdaq
- Dividend yield: N/A
- Price-earnings (P/E) ratio: 15.74
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*Signup bonus information updated weekly.
Disclaimer: The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
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