2020 was a cursed year that was plagued by multiple crisis and this took an unprecedented toll on our nation’s economy. Reports reveal that the COVID-19 pandemic dragged more than 90 million Americans below the poverty line and numerous small businesses were shut down. Nevertheless, as and when people started receiving their vaccines in 2021, it again became one of the best times to reap benefits of the low prices of the market on few domestic assets. Let’s take a quick look at the few stocks to watch out for that are all set for a take-off in 2021.
#1: Ulta Beauty
After spending a depressing life indoors, people are happy to be able to move out of their houses for attending social events. This will lead to an automatic boost to the beauty industry through sale of cosmetic products. During the pandemic, Ulta performed well and in spite of losing on its salon and store business since 2020, the company begun to make sales through its online division. The company also recorded a 90% boost in e-commerce sales and a slow 8.9% decrease in total sales.
Google/Alphabet is definitely one of the most diversified stocks but thanks to the COVID-19 pandemic that it saw a drastic reduction of the total number of online ads. Thanks that the company returned back to its normal state, the parent company of Google, Alphabet (GOOGL, $1,892.56) has also bounced back like never before. With the recovery of travel and hospitality industry, experts may wish to see a rebound in the total number of online ads. Google will definitely see a drastic recovery in travel-ads.
#3: US Foods Holdings
The pandemic hit the hospitality sector severely but as the normalcy has resumed, people will again visit their favorite restaurants. Therefore, US Food Holdings (USFD, $35.77) will reap huge benefit due to the increasing demand of restaurants and hotels all over the country. In 2020, March, USFD stock prices have plummeted by 50% thereby making it a low-cost stock. The biggest drop was in march during the pandemic.
As the recreational joints have reopened including bars and clubs, the sale of alcohol products has also gone through a surge. This is henceforth a lucrative and profitable time to choose stock positions in Diageo. Diageo is UK liquor giant that performed pretty well during the pandemic due to the diversified marketing layout. DEO has more than 150 production sites globally among which 9 are located in North America. This supply chain was disrupted by the pandemic.
#5: American Express
American Express (AXP, $126.16) has had a turbulent year due to the dwindling of credit card value because of restrained traveling and less expenses in the year 2020. This stock saw a 20% fall in revenue to $8.80 million and their net income also dropped by 40% to $1.09 billion in the third quarter. In spite of the fall in consumer spending in 2020, there are predictions that the AXP will make considerable gains in 2021 as more people will come out of their houses and businesses will get back to normalcy.
As 2021 brings in a new ray of hope for the stock market industry, investors should make wise and informed decisions about their money. You may choose any of the above listed stocks or WorldStocks if you want to try your luck in 2021.