Stocks Everyone is Talking About in 2021

Trending Firm Analytics

You may be surprised to find that GameStop, BlackBerry, AMC or Nokia are not on this list…

More and more individuals are starting to realize the values of investing into the greatest wealth creator. The era of the internet puts a multitude of resources at our fingertips with stock market training courses, online guru’s and e-books all available with just a click of a button! More prominent is the desire of the new generation to create generational wealth, retire early and grow their assets while minimizing their liabilities. Some may say the stock market is risky but, if you do your research and invest into some long term holds your chances of gaining are much higher. Here are some highly discussed stocks and their reasons for trending!

11. AliBaba (BABA)

Alibaba Group Holding Limited is a Chinese e-commerce company and low valued stock with good sustainable growth rates. It performed well in the second quarter of FY21 and insight into why suggests its dominant market position and contributions to the cloud, advertising, technology and smart device markets. AliBaba operates two of the worlds largest online market places which aids its growth in gross merchandise value and its monthly active users. The company had gotten a lot of negative buzz in late December when the Chinese government launched the antitrust investigation against it. On the flip side, many had said this was the perfect entry point to buy shares. The stock jumped 23% in January and this company has high profitability and low debt which makes it favourable for long term growth!

10. Unity Software (U)

Unity Software is at the hub of the gaming industry as game developer platforms work to make the use of 2D and 3D interactive content more accessible. On December 17 they announced a partnership with Snapchat to increase its ad distributions and gain access to Snapchat’s software development kit. Although, it is common knowledge that this stock is overvalued it is on a lot of peoples watchlist since its IPO debut in September and noteworthy performance with growth up over 100%. In comparison to 2019 its annual sales, revenue and net growth have gone up tremendously! The company is unique in its spendings by putting more of their money in research and development rather than marketing and coming up with innovations that can lead to superior performance!

9. Rocket Companies (RKT)

Rocket Companies is a combination of multiple finance and consumer service brands including Rocket Mortgage, Rocket Loans, Rocket Auto, etc. It is best known for its mortgage brand which has a much higher net income margin compared to leading competitors. According to Wall Street analysts the low valued stock will out compete all other independent mortgage originators out there . The reason why Rocket’s net profit margin sky rocketed(pun intended) in the spring of 2020 was due to historically low mortgage interest rates to combat the pandemic. It is a good hold for a few years but its growth will most likely not last in the long term.

8. Tattooed Chef (TTCF)

Tattooed chef is a plant based food company with a focus in frozen foods and another low valued stock with a massive growth potential. They currently sell under private label sales at Walmart, Sam’s Club, Costco, and Target. Since they are a vertically integrated company with self sustainability they are able to expand and grow quickly. The buzz around this stock’s last quarter is due to its doubling sales in branded products and launch of its e-commerce site. Not to mention its recent launch in the ever so popular alternative meat products! They have also doubled their manufacturing capacity allowing them to distribute to more companies.

7. DraftKings (DKNG)

Coming in at number 7 a digital sports entertainment and gaming company! With sports gambling becoming widely accepted in Western Society this stock and its users are scaling up. Draftkings has many partnerships including NFL, major league baseball, etc. and have made large marketing strides by adding star sports professionals like Michael Jordon to their advisors board. This stock could be risky due to its volatility and dependence on the sport season but, there was a lot of potential growth at the beginning of 2021 with the beginning of the NBA season. In September ESPN announced that DraftKings will become ESPNs co-exclusive fantasy sports and sports book provider. That month was also a good time for the stock with the NFL season start, the NBA playoffs and NHL playoffs all falling in the same week, and the stock continued to be a trending topic for the months following!

6. Fubo Tv (FUBO)

Its fitting that this follows after DraftKings as Fubo the streaming service recently had a surge when news that they would be buying Vigtory and entering the sports betting industry hit! In December alone the stock was up 82% and the management announced accelerating Q4 numbers. Fubo TV’s subscriber count continues to grow exponentially and its turning into the dominant live TV streaming platform for sports fans. FuboTV is at the hub of converting viewership from linear live TV to streaming live TV.

5. Square Inc. (SQ)

Jack Dorsey the CEO of Square and Twitter is making big moves by attempting to disrupt the finance industry. Square is a mobile payment company and data processor that a lot of small businesses use. Cash App is also by Square and has an ecosystem that allows you to send and receive money, buy fractional shares, invest in stocks, and cryptocurrencies. Unlike traditional banks Square collects massive amounts of data which helps their clients grow and turn them into long term customers. Since they know so much about their clients, they would be able to give out bigger loans with lower risks. The company has over 2 billion dollars in cash and cash equivalents. In the last year alone Square has gotten 247% returns, it has beaten its revenue and earnings per share target for the current year and the last 2 years! It recently got FDIC approval to be a bank so they can now originate loans to the merchants that use their system.

4. Palantir Technologies (PLTR)

Palantir Technologies is a data analytics company specializing in artificial intelligence and machine learning to simplify data for businesses. The company gets half its revenue from the U.S army and government contracts which includes things like distributing the COVID-19 vaccine to catching high risk terrorists. They also aid private sector companies like Airbus and Chrysler. The stock was up 200% only 2 months after going public in September and it hit a billion dollars in revenue in 2020 and was up 44% year over year.

3. Plug Power (PLUG)

With Biden winning the U.S presidential elections and renewable energy becoming more prominent in most developed countries; electric vehicles and electrical vehicle charging stations are taking over the market! Plug Power is a hydrogen fuel cell energy company with good long term investment potential and deals upheld with Amazon and Walmart. In the past year alone they were up 593%. South Korea’s SK group even put in 1.5 billion dollars into a contract buyout at the beginning of this year. Not to mention, the company exceeded their 2020 gross billings target and are raising their 2021 and 2024 estimated targets up by 25M and up to 1.7B respectively. With public offering to common staff this company will garner more cashflow in the long run.

2. Clover Health Investments (CLOV)

It seems IPOC’s 3.7 billion dollar merger with Clover Health had been all over the news by the end of 2020. Clover health is a Telehealth company and a major player in the medicare advantage arena. Medicare advantage companies get reimbursed by the American government in order to ensure medicare that was planned for those over the age of 65 and clover uses technology to lower the cost of this process! It is a low valued stock that has been exponentially growing. Some say its undervalued with its current estimated value to revenue ratio lower than 36% of its peers in the same market. They have also partnered with Walmart’s health insurance service which is licensed to 50 states!

1. Nio (NIO)

Fun fact! If you had invested $2K into NIO in March of 2020 you would have had over $50K by the end of last year! The stock has increased by 1775.89% in just this past year alone and blew up around Nio day with the reveal of the high performance, premium, all electric sedan, ET7! Nio designs, manufactures and sells electric vehicles and is currently publicized just as much as Tesla. Currently, the company only operates in China but first vehicles from the manufacturer are to be offered in Europe. The Chinese government would rather not let an American company dominate the EV market and will bail it out in tough financial times. Unlike its competitors, Nio offers battery as a service which makes it more appealing to the masses. Huge hedge fund companies have already invested into Nio which will allow it to grow and become more profitable later on. With selling around 43K cars in 2020, and the CEO wanting an annual production of 150K cars for 2021 it is likely to hold bullish intent!

As we approach the end I do want to reiterate that these are simply trending stocks that are highly discussed and this list as a stand alone should not be taken as financial advice! With that being said the intention is to encourage people to look into their own stocks and start investing. If interested in these stocks it may be good to look into some ETFs or index funds! The stock market is a scary place but, the rich often say if you are keeping your money in a savings account you are actually losing purchasing power. The interest rates of a savings account may seem safer but they are often lower than inflation rates. The potential of higher returns alone is the reason some people take leaps to start investing! Will it be yours?