Wondering where to invest in 2021? Looking for what stocks will boom in 2021? Worried the stock market will crash in 2021? Or maybe even what stocks will double in 2021? Then you’re in the right place!
The next stocks to explode in 2021 come from a range of different backgrounds and industries. Some of them are picking up speed after a rough 2020, while others are reaching new highs.
And some stocks are like rocket ships, waiting on the launching pad, ready to shoot up into the stratosphere at any second. All they need is that little push and BOOM, they explode into uncharted territory and “boldly go where no man has gone before”.
It’s these juicy stocks that have a huge potential to make stock traders a great deal of wealth if they can spot them and get in at the right time.
But stock traders don’t always spot them at the right time, sometimes these stocks shoot right past them and they’re surprised they never saw them. They just weren’t looking hard enough!
2021 has the potential to be a particularly interesting year for the stock market. First and foremost, we’re still pushing through the coronavirus pandemic and the economy may see some recovery from this year (hopefully).
This could mean that stocks that struggled or even spiralled down in value might stand a chance of recuperating, presenting stock traders with excellent buying opportunities.
In the end, though, the stocks that will really explode are the ones that offer consumers something truly unique that you just can’t get anywhere else.
These stocks tend to be industry disruptors, leaders, and problem solvers. It’s their innovation that gives them value.
In this article, we’ll look at 10 of the potential stocks to explode in 2021! Check them all out and remember to do your own research!
The Next 10 Stocks to Explode in 2021!
Here’s our list of stocks to explode in 2021:
- Peloton Interactive - Growth of up to 348% in 2020!
- MarketAxess - Today’s fastest growing stock?
- Taylor Wimpey - Getting ready for a rebound after a tough 2020?
- Shopify - Could it rise by 300% by 2025?
- Rolls-Royce - Leaders in the aerospace industry are on the up
- Square - The future of sending money?
- Veeva Systems - A unique combination of cloud computing, science and pharmaceuticals
- Spirit Airlines - The best buying opportunity of 2021?
- Netflix - The king of streaming is still going strong
- Plug Power - Future leaders in environmentally friendly technology?
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What Are The Next Stocks To Explode?
1. Peloton Interactive (PTON) - Growth of up to 348% in 2020!
Peloton Interactive stock trades with the ticker symbol ‘PTON’ and is looking pretty ready to explode in 2021!
Headed by CEO John Foley, Peloton Interactive has been doing immensely well since early 2020. So well, in fact, US president Joe Biden even has one.
Peloton Interactive stands out from other exercise equipment brands because they not only sell exercise bikes, but you can also subscribe to online training sessions which you can participate in through the bike’s screen.
Should I buy Peloton stock? And is Peloton stock a good buy?
Well, according to Wall Street Zen, Peloton stock is forecast to reach approximately $200 in 12 months and give the stock a ‘Strong Buy’.
Gov Capital is even more bullish, predicting that Peloton’s stock price will be $473.215106, according to their prediction system in roughly the same period.
With the pandemic still in full swing, it’s not too surprising that such a product is doing so well. Most of us are stuck at home with nowhere to exercise and we interact less with people than we used to.
Connor Smith writing for Barron’s in November 2020 stated that “[t]he pandemic has pushed Peloton’s shares up 348% in 2020”. And with no end in sight yet, who knows how much higher it might go.
there is arguably a lot more to come from Peloton Interactive. That’s why it’s number one on our list of the next stocks to explode.
Have you considered buying PTON stock?
2. MarketAxess (MKTX) - Today’s fastest growing stock?
MarketAxess is an interesting financial company that operates as a financial platform for institutional investors and brokers to trade bonds, most of which are investment grade and/or high-yield debt.
Dan Caplinger of The Motley Fool highlighted that perhaps one of the biggest reasons to buy MarketAxess stock in 2021 is how it continued to grow during the pandemic, even after stock prices soared 80% during 2019.
Looking into MarketAxess’s price history, it has done exceptionally well in the last year. According to Yahoo Finance, on the 10th of February 2020, MarketAxess opened at $342.01. A year later, it’s opening at $567.07!
Stock traders should also watch out for MarketAxess’s competitors of which there are many (including MetaTrader, one the biggest tools for trading, offered by most brokers).
But what should give stocks traders confidence is that they’re growing exceptionally well. According to MarketBeat, MarketAxess reported $1.91 earnings per share in the final quarter of 2020.
On top of that, they also forecast MarketAxess will reach earnings of $2.27 per share by the second quarter of 2022.
Even more bullish are Wallet Investor, who forecast that MarketAxess will reach $703.833 in a year, a huge increase!
All in all, Market Axess is likely to remain in our portfolio of the next shares to explode for many years.
Have you considered buying MKTX stock?
3. Taylor Wimpey (TW) - Getting ready for a rebound after a tough 2020?
When considering if you should buy Taylor Wimpey shares, the first thing you should remind yourself is that it is one of the largest housebuilding companies in the UK and it has a history of acquiring different companies to continue growing.
In fact, Taylor Wimpey was formed as a merger between two companies Taylor Woodrow and George Wimpey back in 2007.
Looking back at Taylor Wimpey’s historic share price, you can see that the company has had several swings up and down over the years, reaching a peak of approximately £232.40 in February 2020 before taking a nosedive.
So, it might be hard for some to believe that Taylor Wimpey is a good investment.
But what you need to remember is that the company practically ceased all work in February 2020 when lockdown measures were introduced in the UK. This meant there was a long period where no construction work was being carried out whatsoever.
Getting in now might be a great opportunity if traders believe that it will pick up again when lockdown measures are relaxed.
Alejandro Arrieche writing for Capital.com agrees that Taylor Wimpey is in ‘a dip worth buying’.
He stated: “the combination of pent-up demand and historically-low mortgage rates seems to be providing a boost for the housing market, as most homebuilders in the UK have reported a surge in new orders”.
According to The Economy Forecast Agency, Taylor Wimpey share price is forecast to reach a maximum of £153 by December 2021.
We don’t see Taylor Wimpey slowing down any time soon, so it’s among our top picks in 2021.
Have you considered buying TW stock?
4. Shopify (SHOP) - Could it rise by 300% by 2025?
At a glance, Shopify is a Canadian eCommerce platform where merchants can set up an online store.
What makes them stand out a little more from their competitors is the introduction of their ‘Shopify POS’ (point of sale), which allows merchants to sell their products in person too.
Originally starting as an online store for snowboarding equipment, Shopify has grown into a huge company that enables some of the world’s biggest brands to reach consumers online, including The Economist, Heinz, Penguin Books, and Red Bull.
Some analysts, such as Samad Samana, forecast Shopify’s 2025 stock to soar over 300% to a total valuation of $10 billion!
But this claim was back in November 2020, when Shopify’s current price was near $988. As of February, the price is already $1,432.99, which may mean that Samana’s estimate might be pretty low.
Stock traders thinking if they should buy Shopify stock, should take a look at Shopify’s price history, to get an idea of their potential.
As of February 2020, Shopify was trading as low as $479.11. And looking at today’s price, it’s practically tripled!
We think Shopify stock could be a lot bigger than that by the end of 2021.
Have you considered buying SHOP stock?
5. Rolls-Royce (RR.L) - Leaders in the aerospace industry are on the up
Rolls Royce is one of the few UK-based companies to make our list of the next shares to explode.
While known for their luxurious cars, Rolls-Royce is technically more of an ‘aerospace’ company and surprisingly is the world’s second-largest producer of aircraft engines, and that is where their real value comes from.
Anybody wondering if Rolls-Royce shares are good to buy should start by looking at their history.
Founded more than 100 years ago, those that know their cars will know that Rolls-Royce has had a bumpy journey, even entering voluntary liquidation back in 1971.
Perhaps it’s not too surprising as luxury car companies, whose products are super expensive, sometimes have trouble turning a profit.
But those days are largely behind them. Looking into Rolls-Royce’s share price prediction for 2021, Jonathan Smith writing for Yahoo Finance said he believes the price will reach up to 210p “with a stretch target of 240p”.
According to Statista, Rolls-Royce makes up 30% of the aircraft engine market with General Electric being their primary rival. What makes them stand out is the high quality of their products, which are known to be some of the best in the world.
And looking back at Rolls-Royce stock history, you can get an idea of what the stock is capable of, reaching highs of £238.98 and lows of £212.67 in January 2020, according to Investing.com.
Have you considered buying RR stock?
6. Square (SQ) - The future of sending money?
Square is a financial services company that offers a diverse range of different products, primarily focusing on enabling mobile payments.
Interesting fact: Square’s CEO is Jack Dorsey who is also the CEO of Twitter (so you know there’s probably some big players backing them).
Square’s primary product is its Cash app that allows users to easily send and receive money, as well as donate money to an important cause or even tip professionals. It also offers users the ability to take out loans as well.
The very nature of the app has put Square and PayPal stock in direct competition with each other. In fact, Square may just be the best hedge against PayPal.
But in reality, PayPal may even present very weak competition against Square, as PayPal recently started charging inactive accounts, a move that won’t win them any popularity contests.
Square’s stock forecast for 2021 is looking pretty good. CNN estimates that in 12 months Square could reach a maximum of $304.
And Gov Capital gives Square stock a 2025 forecast of $1300.774, which is humungous!
Do remember though, the competition over banking and money sending apps is getting quite heated with several different apps surfacing in recent years - even Facebook’s Messenger app is introducing money sending capabilities.
Have you considered buying SQ stock?
7. Veeva Systems (VEEV) - A unique combination of cloud computing, science and pharmaceuticals
Founded by Peter Gassner and Matt Wallach, Veeva Systems is perhaps the most interesting stock pick of this article.
Veeva Systems is a cloud computing company that provides services to pharmaceutical and life sciences applications. It’s a very specific niche, but one that could end up revolutionising how health-related applications work.
Perhaps it’s not too surprising that Veeva Systems is predicted to do well in 2021 because as the coronavirus continues to rage on, many pharmaceutical companies need assistance with research and development.
They cover a wide variety of needs such as software and data (which can be used for research purposes) and offer support via their partners as well.
Looking into Veeva, it is clear that they’re a growing company. On the 31st January 2020, Veeva reported earnings of “$1,104.1 million, up from $862.2 million one year ago, an increase of 28% year-over-year”.
On top of that Veeva has partnered with a wide range of other companies, including Adobe, AWS, and Microsoft, to name a few.
And then looking at Veeva Systems stock forecast, CNN gives Veeva a high estimate of $340 and a low estimate of $255 for the next 12 months, the median being $320, which is still higher than at the time of writing.
8. Spirit Airlines (SAVE) - The best buying opportunity of 2021?
Spirit Airlines is an interesting pick for our list. For those that don’t know them, they are a super low-cost airline based in the US (also operating in parts of Latin America and the Caribbean) and are the eighth-largest commercial airline in North America.
But the question is, should stock traders be buying Spirit Airlines stock right now? Arguably, it’s a pretty bad time to be an airline - not many of us are planning on going anywhere soon.
And indeed, Spirit Airlines stock did take a heft tumble in March 2020, but the important thing is they are starting to slowly trend upwards again, and it is that movement that is most important. 2021 could be prime buying time for Spirit Airlines stock.
Stock traders should closely watch statistics related to airline travel, especially around the summertime and Christmas where people are more likely to fly to get a sense of if investing in Spirit Airlines is worth the risk.
Checking in on Spirit Airlines stock price history, according to Yahoo Finance, the airline reached a yearly low of $8.01 in May 2020 and has since risen to $32.68 by February 2021, a great recovery.
And looking at Spirit Airlines stock forecast for 2021, MarketBeat suggests that Spirit Airlines 52-week range high could reach up to $44.80.
Read More: Top 8 Tourism Stocks To Buy In 2021
9. Netflix (NFLX) - The king of streaming is still going strong
Is there any better stock than Netflix? Probably not! In the last decade, Netflix has gone from being an industry disruptor to an industry leader - though arguably, its rivals are starting to gain ground.
Looking at Netflix’s stock price history, it has been on the up and up pretty much since the beginning, particularly gaining ground at the beginning of 2020.
According to Macrotrends, Netflix started 2020 at $329.8100. At the time of writing, it is more than $200 on top of that number.
And Investor Wallet is positive about Netflix’s future, giving Netflix stock a forecast of $640.408 in one year and $964.439 in five years, potentially making Netflix stock a great long-term investment.
Traders wondering if they should buy Netflix stock need to keep track of their rivals, primarily Amazon Prime Video, Disney+, Hulu and HBO Max, all of which are becoming big players in the streaming game.
Stock traders might even consider these other stocks as good hedges against Netflix if things don’t turn out well.
We’re very bullish about Netflix, as are most analysts. Anytime the shares pull back, consider loading up on more.
Have you considered buying NFLX stock?
10. Plug Power (PLUG) - Future leaders in environmentally friendly technology?
Plug Power is headed by CEO Andrew J. Marsh and Chairman George C. McNamee and develops hydrogen fuel cells to replace conventional batteries. Supposedly, their technology allows batteries to recharge in minutes.
Anyone wondering ‘should I buy Plug Power stock?’ will be excited to hear that in January 2021, Plug Power signed an agreement with French car manufacturer Renault, and will launch a joint-venture by the end of the first half of 2021.
They aim to become leaders in LCV (Light Commercial Vehicles), such as vans and pickup trucks. If they succeed, Plug Power stock might even start rivalling the likes of Tesla.
And there is even the possibility that the Renault partnership could lead to partnerships with other European car manufacturers in the future and move on to other types of vehicles as well. The whole idea behind could revolutionise the car industry and bring it to the 21st century.
Looking at Plug Power’s stock forecast for 2021, Wallet Investor predicts that the stock will be worth $75.086 in one year.
On top of that, they also gave Plug Power a 2025 stock prediction of $102.051, suggesting that it may be a good stock to sit on for a couple of years.
Have you considered buying PLUG stock?
Knowing which stocks to explode can be challenging – especially if you are an investment newbie that has little understanding of how to research stocks. With this in mind, this article has outlined the next stocks to explode in 2021.
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Where should I invest in 2021?
You are the one who needs to answer that question! We can only give you pointers and you must decide what to do with that information.
Remember, that people on the internet can host a wide variety of opinions on where to put your money. Traders may have knowledge in some industries but not others, so what might look like a great stock pick for one trader, might look terrible stock to another.
Looking back to 2020, predictions were wildly off, but no one could have forecasted a global pandemic!
It reminds us of the very nature of predictions - they’re not certain, we cannot guess what’s going to happen in the future with any certainty. We can only make estimates based on what we know from the past.
‘Expect the unexpected’ is a quote that gets thrown around a lot (where exactly it comes from, who knows?), but in the context of the stock market, it rings true.
You should mentally prepare yourself to be shocked, surprised, and even disappointed. The worst can indeed happen, even in the best of times and you need to be able to react to it.
But in the end, it comes down to these questions:
- What kind of stock trader are you?
- Do you day trade?
- Are you in it for the long-run or do you have a specific interest in a certain type of stock?
- And on top of that, what is your appetite for risk? Low or high?
If you’re looking for something more potentially risky, Rolls-Royce might be a good fit for you.
While if you’re more interested in finance (and understand the technology behind it), MarketAxess and Square could be excellent choices.
Then there’s Netflix and Peloton which could both continue to pick up if we continue our quarantine lifestyle.
And stock traders looking for industry disruptors should be watching both Shopify and Plug Power, who both stand significant chances of squeezing their way up to the top of their respective industries.
Finally, stock traders should look at stocks that have a chance at solving real issues in different industries and parts of the world.
For example, Taylor Wimpey as one of the largest house building companies in the UK has a lot to gain from the ongoing housing crisis and Veeva Systems may revolutionise the pharmaceutical industry.
The choices for 2021 are abundant, just make sure it’s one you’re happy with!
If you remember anything from What Is The Next Stock To Explode 2021? 10 To Look Out For, make it these key points.
- Market disruptors, problem solvers and industry leaders lead the way for top stocks to explode in 2021. Many of the top stocks for this year offer something unique that consumers cannot get anywhere else - this gives them value.
- Some of the stocks on this list are still recovering from 2020, such as Spirit Airlines. Which makes them perfect buying opportunities as they get back on their feet.
- Many of the predictions for 2020 went straight out the window! No one expected a pandemic, and it still can continue to disrupt the stock market, so bear that in mind.
- In the end, what you decide to invest in is up to you! Don’t invest in stocks you don’t understand. You should have good knowledge of the industry and understand the value the stock provides.
Still not sure what to expect from the stock market in 2021? Maybe these FAQs will help you out.
Will the stock market crash in 2021?
It’s a question that’s been on everyone’s mind the last few years, but so far, we seem to have evaded it and we continue to see conflicting predictions from economists and traders.
Many believed that the pandemic would lead to a stock market crash in 2020 or 2021 and indeed the concern was pretty real, but we never saw the bite we were expecting.
Business Insider, quoting Jefferies’ managing director Desh Peramunetilleke stated that “[the market is unlikely to see a] prolonged unwinding”, and that investors should not be afraid to buy in any dips in 2021.
Explaining that while Wall Street has been warning everyone that there is a stock market bubble, it likely won’t be popping in 2021.
Factors that might burst the bubble include “an unexpected interest rate hike” or a “‘total relapse’ of COVID-19, immediate US tax hikes, ‘crippling tech regulations’ and an escalation of the US-China tech war”, but Peramunetilleke said that the chances of any of these things happening was low.
The Motley Fools’ Sean Williams had a slightly different opinion. While reminding us that “the S&P 500 finished 2020 higher by 16% [and] begun 2021 on a high note”, he also believes that stock traders should be prepared for the possibility of a 20% stock market decline.
Williams states that “anytime the Shiller P/E ratio crosses above and sustains 30 in a bull market rally, it’s eventually resulted in a minimum decline of 20%”, citing that the last two times this happened was “the Great Depression and dot-com bubble”.
Are stock market crashes caused by traders or technical malfunctions?
Senior Contributor to Forbes, Simon Moore, reminds us that “crash events are often technical events driven by trading imbalances”.
What he means by this is that historically crashes tend to happen due to technical reasons, not the actions of traders and he reminds us that we now have devices, such as circuit breakers, in place to prevent crashes.
Moore believes what we should be more concerned about is “the prospect of lower returns over the coming years”.
So, all-in-all, perhaps a stock market crash as we tend to define it will likely not happen in 2021, but we should still bear in mind that a decline in the stock market is still a possibility.
What will the stock market look like in 2021?
In 2021, we may see some economic recovery that could potentially boost the stock market.
Ryan Ermey, writing for Acorns Grow states that “as the economy recovers, stocks will continue to rise”, adding that “analysts expect the economy to grow in 2021” as vaccine distribution picks up.
On top of that, Ermey also added that Wells Fargo expects “small firms to lead the way in 2021, with large companies slated to underperform the average stock”.
With that in mind, it may be wise to focus more on smaller companies rather than larger ones.
John Jennings writing for Forbes gave what he called an ‘unsatisfying’ prediction for 2021, saying: “[m]y prediction for what the market will return in 2021 is the same as my 2020 prediction: it will probably be up, but it might be down”.
Keywords there being ‘probably’ and ‘might’. So, while to him, at least the stock market is more likely to be up in 2021, there is still the chance that it ‘might’ not.
Another thing stocks traders should look out for is if stocks that did well during the pandemic may stop surging, or at least peter out of momentum.
2020 saw stocks like Netflix, Amazon and Zoom do really well largely because they were companies that people could use from the comfort of their homes with an internet connection.
If we see a strong recovery from the coronavirus in 2021, perhaps these stocks may stagnate as consumers’ habits change.
Reddit, GameStop and Robinhood
Perhaps one of the most interesting stories stocks traders should keep in mind for 2021 is Reddit and GameStop.
As CNN’s Allison Morrow described it, it is very much a ‘David and Goliath story’. With young, amateur day traders on the page Reddit WallStreetBets playing the role of David and Wall Street short-sellers playing the role of Goliath.
Morrow explained the Redditor’s goals as to: “Drive up stock prices to score profits for themselves, and at the same time, force the establishment investors to abandon bearish bets against struggling companies such as GameStop (GME), AMC (AMC), Macy’s (M) and several others”.
Now while you may initially think that a group of amateur day traders would stand little chance against Wall Street ‘pros’, you should probably be told that the WallStreetBets group has 8.8 million followers.
Acting together, the group managed to push the price of GameStop stock up to $347.51, its highest ever and several hedge funds that aimed to short GameStop got pretty worried.
Why is all this important to stock traders?
It’s important because we may see more of this throughout 2021. Reddit is becoming a hub where retail day traders can act together as a single unit and have a real impact on the market.
So, wherever you get your stock market news from, make sure you also check up on Reddit every now and then.
But wait, there’s more to this story…
A short time later, Robinhood, a mobile app for trading soon got in trouble when they blocked their traders from continuing to buy GameStop and other stocks that Redditors had pushed up, only allowing them to close their positions.
Robinhood cited ‘volatility’ as the reason behind the block which angered many Redditors who were using the app to buy GameStop stock. To them, it felt like Robinhood had teamed up with the hedge funds and Wall Street short-sellers.
The issue brought both the political left and right together in the USA, with people on both sides agreeing that Robinhood should not be able to block traders from opening and closing positions.
We may see some movement away from Robinhood and even a potential investigation into this kind of activity during 2021.
Please Note: Past performance is not an indication of future performance. The value of investments can go down as well as up. Any opinions, news, research, analyses, prices, or other information contained on this website are provided as general market commentary, and do not constitute investment advice. Trading Education shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information provided.
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