As the economy reopens, businesses that were hit hard by the pandemic like hotels and theme parks are expected to rebound. This gives savvy investors a chance to buy in while stock prices are low and make a tidy profit. Here are the 5 best stocks to invest in for a prosperous 2021.
5 Stocks for a Prosperous 2021
Lowe’s doesn’t have as much market share as competitor Home Depot. But experts believe that Lowe’s stock may be undervalued, which could make it a good buy for 2021.
In 2020, the store’s revenue grew by 19%, while Home Depot’s only increased 13%. However, this sales boom won’t last forever. Consumers spent more money on renovations during lockdown because they were stuck at home, but that will likely change as the economy reopens.
Luckily Lowe’s is aware of this and is pivoting its strategy. The store is focusing on professional contractors, which could provide the kind of sustained growth it needs to gain on Home Depot and give investors high returns.
Retail sales shifted online during the pandemic, which helped furniture giant Wayfair generate more business. The company has 10 million more active customers than it did a year ago. Repeat order volume has also increased significantly.
Deutsche Bank projects that this stock will be a good pick because Wayfair’s large repeat customer base will drive sales throughout 2021.
BJ’s Wholesale Club
BJ’s has experienced strong growth during the pandemic. In the fourth quarter of 2020, in-store sales increased by 15.9% and online sales rose by a whopping 168%.
Many Americans lost their jobs due to COVID, which has caused them to be more price-conscious at the grocery store. This increased frugality has benefitted wholesale clubs like BJ’s.
Experts believe that BJ’s is poised to continue growing this year, which makes it one of the best stocks for a prosperous 2021.
The Walt Disney Co.
Disney was forced to close its parks and halt its cruises during the pandemic, which hit the company hard. In the third quarter of 2020, Disney’s adjusted earnings were down 94% compared to the same quarter in 2019.
Luckily Disney had an ace up its sleeve, its streaming service Disney Plus. The platform gained 10 million customers in its first 24 hours and has since grown to over 100 million subscribers. Experts even believe that it could surpass Netflix if it keeps growing at the same pace.
Now that much of the country is vaccinated, the parks are also expected to have a strong summer season. So all signs point to Disney being one of the top stocks for a prosperous 2021.
Hilton Worldwide Holdings
Just like Disney, Hilton had a tough 2020. Its earnings dropped by a shocking 64% and its revenue per available room was down $55 compared to 2019.
Over 70% of Americans say they plan to spend more on travel post-pandemic to make up for lost time. They also indicated that they’re willing to spend more than a full paycheck on domestic travel and over two full paychecks on international vacations. The fact that Americans are willing to splurge on travel is good news for Hilton, which owns luxury brands like Waldorf Astoria and LXR Hotels.
If COVID cases continue to decline and Americans feel safe traveling this summer, Hilton hotels could experience a strong recovery.
Although there are no guarantees, these companies seem well-positioned to grow in 2021, which could make them a good addition to your portfolio.
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