Growth Stocks to Watch in 2021
Introduction
The stock market is continually fluctuating, and investors must stay aware of the latest trends and movements to make informed decisions. As we enter 2021, many stock experts suggest that growth stocks will have the most potential for strong returns. Growth stocks are shares in companies that are expected to grow at a faster rate than the average market, offering investors the potential for high returns. In this article, we will discuss some of the top growth stocks to watch out for in 2021.
Amazon (AMZN)
Amazon is an E-Commerce company that has played a vital role in shaping the online retail industry. Amazon's stock gained almost 80% in 2020, and it's expected to continue with the growth trend this year. Amazon's revenue growth accelerated in 2020, with a significant increase in online shopping due to the global pandemic. Amazon continues to expand its reach with services like Amazon Music, Prime Video, and Amazon Web Services. With the growth trend in e-commerce and Amazon's continued expansion, this stock is a top choice for many growth stock investors.
Tesla (TSLA)
The electric vehicle market has experienced significant growth in recent years, and Tesla is at the top of the list of electric car manufacturers. Tesla's stock was one of the top-performing stocks of 2020 and continues to grow in 2021. Tesla's future expansion plans include the development of energy storage and solar technologies. Additionally, consumer demand for electric cars is likely to increase as governments enact more stringent regulations to combat climate change. Tesla's innovative approach and future expansion plans make it an attractive choice for growth investors.
Zoom Video Communications (ZM)
Teleconferencing and remote work became an essential part of our daily lives during the pandemic, and Zoom Video Communications has played a crucial role in this shift. Zoom's stock rose by over 500% in 2020 as the demand for video-conferencing services increased. The company has been continually improving its services by adding new features and enhancing security. Zoom is expected to continue its growth trend in 2021, given the continued remote work trend and the company's upcoming ventures into other communication services.
Apple (AAPL)
Apple is one of the most well-known companies globally, and its stock has consistently performed well over the years. Apple has been one of the top-performing technology stocks giving investors high returns. Apple's continued expansion into new areas like the home, automobiles, and health sectors signifies its potential for growth in the future. Apple's future growth rate is expected to be led by the popularity of their services, such as iCloud, Apple Music, and Apple Pay.
Alphabet (GOOG)
Alphabet, the parent company of Google, is a giant in the technology sector. Google's search engine dominance, along with its advertising platform, has made Alphabet a top-performing stock for years. Alphabet's expansion into new ventures such as self-driving technology, artificial intelligence, and smart homes will likely drive the company's growth in the coming years. Overall, Alphabet offers a well-diversified investment that is expected to perform well in various economic conditions.
Conclusion
Growth stocks have the potential to outperform the market in 2021, and there are plenty of options to choose from. Amazon, Tesla, Zoom, Apple, and Alphabet remain some of the top growth stocks to watch out for this year. However, investors should keep in mind that investing in growth stocks comes with higher risk and volatility. It's always essential to conduct thorough research and analysis before committing to any stock investment. Nevertheless, investing in growth stocks can be a great way to grow your portfolio and enjoy higher returns.