The bull market has been raging for much longer than expected, and fear-mongers are coming out en masse in a desperate attempt to be the first to announce an upcoming crash.
Indeed, many believed that a setback after the stellar performances of 2020 was going to be inevitable. This was not the case. At least not yet.
Stock market indices have been on the rise since the start of the year, with the S&P 500 showing the strongest growth of 20.75%. Throughout the year, most investors have fled to tech companies and others that have found a way to weather the pandemic.
Five stocks set to climb even higher in 2021
# 1 Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
As one of the world’s largest chipmakers, TSM is potentially in a good position. With a market cap of $ 591 billion and good growth prospects, TSM could benefit from the current chip shortage.
The company plans to take advantage of its gargantuan size to increase prices by around 10% for high-end chips and 20% for less advanced semiconductors.
Chip manufacturing is a technical and capital intensive business, which is why many companies design their own chips and contract them out for manufacturing. Notably, Apple Inc (AAPL) is part of TSMthe biggest customers of.
TSM climbed 25% in the first month of this year, and it is up nearly 10% since the start of the year, with what appears to be a lot of room – and catalyst – to climb further.
# 2 Fisker Inc. (RSF)
Fisker is a growing electric car company. It’s not just part of the future of electric vehicles, it’s the slightly more futuristic fringe. This is a highly speculative stock that tends to jump on sentiment news rather than fundamentals because it’s not producing anything – just yet. Fisker plans to launch its all-electric (and partly recycled) Ocean SUV at the 2021 Los Angeles auto show in November, and we believe that will be a fair share price driver, if only for a short time.
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The Fisker Ocean SUV would have a range of 300 miles and 200 miles off on a 30-minute charge. Boasting an 80 kWh battery and a full-length solar roof to improve vehicle efficiency and range, it is one of the most anticipated electric vehicles among start-ups.
It will certainly have tough competitors like Tesla, General Motors and Nissan, but it will be interesting to see how they break into the market given their great anticipation. After all, it has a “hook” that others don’t: it’s durable beyond “electric”.
The stock is down 8% year-to-date, but it could be worth buying lower, especially before November.
# 3 Amazon.com Inc. (AMZN)
A giant in its industry, Amazon is one of the few companies on the planet to be worth more than $ 1,000 billion. Jeff Bezos recently stepped down as CEO, handing over the job to his loyal lieutenant Andy Jassy who spent 24 years at the company running Amazon Web Services (AWS), which was a cash cow for the company. .
Amazon’s recent post-earnings decline has allowed stocks to trade at attractive levels. While earnings per share exceeded expectations, earnings fell short of Wall Street expectations for the first time in the past three years.
Despite this, Amazon has just experienced its third consecutive quarter of $ 100 billion and continues to be a giant. The company has experienced slightly slower growth recently, but continues to focus on the long term. This should continue to benefit its shareholders for years to come.
# 4 Bank of America Corp. (BAC)
Even after rallying 40% so far in 2021, Charlotte, NC-based Bank of America looks like a compelling buy, trading for just 14 times its profits. With a market capitalization of $ 350 billion, BAC is one of the safest financial stocks, offering a 2% dividend which it uses to pay 24% of its profits. This leaves sufficient margin to continue paying shareholders under adverse circumstances, and margin to increase payment with economic improvement.
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If interest rates rise as inflation continues, the financial sector will benefit. This includes BAC, and it wouldn’t be a bad idea to hold on if that happens.
YTD, BofA is up over 36% and on track for more gains.
# 5 Shopify Inc. (STORE)
Shopify Inc. is a multinational e-commerce company headquartered in Ontario, Canada. It is used by 1.7 million traders in more than 175 different countries. 457 million buyers order from Shopify merchants every year. That’s a 16.23-fold increase since 2014 when it went public.
Shopify makes selling easy for merchants, providing all the tools necessary to sell. They calculate sales tax, shipping charges, and securely accept credit card payments in a streamlined approach.
Last year, Shopify facilitated $ 119 billion in sales, a 95% increase over the previous year. They recorded annual revenues of $ 2.9 billion in 2020, an 85% increase from the previous year.
Shopify has grown steadily exponentially since going public, so it could be a worthwhile investment in the long run. Especially when you consider the transition from in-store shopping to online shopping from merchants.
Technology and finance are staple in this new age world, and as they continue to expand their reach, investors can find themselves in lucrative positions if they catch the right times.
Since the start of the year, investors have posted gains of almost 38%, with no sign of slowing down.
By Joseph Shobe for Safehaven.com
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