Best Shares to Buy in 2021
2020 is set to go down in the history books. The coronavirus pandemic triggered significant shifts in consumer and business trends not seen since the Great Depression, while also creating some of the best shares to buy for 2021 and the next decade.
With a new president in the White House, a new relationship between the UK and EU and the landmark creation of the world’s biggest trading bloc for Asia-Pacific countries, 2021 is setting up to be another very interesting year.
If you want to know just some of the best stocks to buy in 2021 to capitalise on the historic trends and themes developing right now, then read on and make this year, your year! ▼▼▼
In this article, you will learn:
✅ Some of the best shares to buy now to bullet-proof your portfolio for the historic shifts in consumer and business trends happening right now.
✅ The best stocks to invest in around the world including from the UK, US, Europe and Asia-Pacific regions.
✅ The fundamental rationale and technical analysis clues on some of the best stocks to buy across different sectors such as retail, energy, banks and pharmaceuticals.
✅ How to open an Invest.MT5 account with Admiral Markets UK Ltd with as little as €1 so you can invest in stocks and ETFs from 15 of the largest stock exchanges in the world with fees from just $0.01 per share on US stocks!
✅ How to supercharge your trading platform completely FREE to access advanced trading and investing tools such as the Technical Insight Lookup Indicator which provides you with actionable trading ideas!
✅ How to open a Trade.MT5 account so you can trade thousands of stocks via Contracts for Difference (CFDs) to potentially profit from rising and falling markets, as well as trade using leverage so you can control a large position with a smaller deposit.
✅ And much, much more!
Why buy shares in 2021?
2020 created some huge divergences between global stock markets. By the end of the year, the US stock market was trading at record highs, with a few Asia stock markets as well. The rest, including Europe, were lagging behind the rest of the world.
While the coronavirus pandemic threw global markets out of sync, many analysts are predicting for the ‘great reset’ to happen. With central banks around the world continuing to support economies by providing cheap credit, that money is expected to flow back into the stock market.
2021 could be one of the best times in the past decade to identify the best stocks to invest in due to some significant macroeconomic and social changes. A few are highlighted below:
☑️ The Joe Biden impact from the White House.
☑️ A new relationship between the UK and EU.
☑️ The creation of the world’s largest trading bloc in Asia-Pacific.
☑️ A surge in demand for biotech and pharmaceutical stocks for vaccine protection.
☑️ A shift towards more renewable and clean energy sources.
☑️ The China story and its rapid economic growth, supported by the state.
☑️ A new commodity bull cycle caused by supply constraints and increasing demand.
☑️ A sector rotation not seen since the Great Depression.
In each of these situations, there are certain companies that are set to benefit. While no one can ever predict with 100% certainty which stocks will do the best and which ones will not, understanding the big picture themes can help to give investors an edge.
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How to find the best shares to invest in
Buying shares online is actually quite a simple process as our step-by-step walkthrough in a later section will show. However, identifying what shares to buy does require some skill, research and preparation. Even then, there is still no guarantee of success which is why risk management is important.
Buying shares: Risk management 101
Beginner investors often put their eggs all in one basket expecting their decisions to always work in their favour. For example, an investor might have £10,000 to invest and may choose to invest it all into just one stock. This means there is no capital left if another - perhaps better - opportunity comes along.
Also, a sharp - yet temporary - fall may cause the investor to make an emotional decision and exit early, thinking about short term fluctuations in price rather than the company’s long-term fundamentals.
One risk management technique used by many investors is to spread investments across different types of companies that operate in different sectors. When one sector is not performing well, another sector could be. This helps to build a more diversified and balanced portfolio that can help to balance out the effect of changing market conditions.
For example, an investor who has £10,000 to invest, may choose to invest £2,000 in five different companies throughout the year. Of course, the risk tolerance of each individual is different so it is worthwhile spending a bit of time building a plan on how you want to invest throughout the year.
Buying shares: Technical vs Fundamental vs Sector analysis
In the next section, we detail - what could be - some of the best shares to buy in 2021. The criteria for selection involves the following types of analysis:
☑️ Fundamental analysis. This type of analysis involves analysing a company at a financial level. This includes metrics such as sales performance, earnings trends, debt levels, new product announcements, the economic environment and so on.
☑️ Technical analysis. This type of analysis involves analysing a company’s historical trading price via a price chart. Trading patterns and technical trading indicators can often leave clues on who is the most dominant force in the market (buyers or sellers), as well as pinpoint potential turning points in a company’s share price.
☑️ Sector analysis. As discussed in the previous risk management section, having options across different sectors can help in building a diversified and balanced stock portfolio. The criteria aims to identify companies from a range of different sectors such as banks, utilities, financials, energy, retail and so on.
Now you know more about the criteria behind identifying - what could be - some of the best shares to invest in for 2021, let’s take a look at the list.
Best shares to buy in European and UK stock markets
Many fund managers are bullish on the prospects of European and UK stock markets in 2021, even though they lagged behind the US stock market in 2020. The rollout of a coronavirus vaccine, a new trading relationship between the UK and EU and a renewed effort from new US president Joe Biden to repair relationships with the EU are set to create some very interesting opportunities.
Even legendary bond fund manager and Pimco co-founder, Bill Gross, said that European stock markets could outperform in 2021 as they were shunned in 2020. Many believe there are also bargains to be had in sectors that were battered by the coronavirus pandemic such as travel, leisure and banks (due to governments banning dividend payouts). Let’s take a look at a few potentials!
✴️ #1 EasyJet PLC (EZJ): A covid recovery play that could fly away!
Shares in airline stocks around the world were battered during the lockdown restrictions from the coronavirus pandemic in 2020. However, with the rollout of a coronavirus vaccine, things are slowly starting to get moving again. The key emphasis on the word ‘slowly.’
While airlines focused on business travel may suffer due to new remote working opportunities, there are many people itching to go on holiday and to see family and friends around the world. EasyJet is well placed to take advantage of this with its share price crashing nearly 80% lower since 2015.
However, it is certainly not a momentum play and is most likely for the long-term value investor. EasyJet are dealing with a huge debt pile problem but have brought in some specialists to help deal with it.
▶️ Deutsche Bank upgraded its rating on the stock to ‘buy’ from ‘hold’ with a target price increase to 1,150p (GBP).
That represents significant upside from where the stock closed at the end of 2020, as the long-term monthly chart of EasyJet’s share price shows below:
Source: Admiral Markets MT5 Supreme Edition, EZJ, Monthly - Data range: from 1 Nov 2003 to 11 Dec 2020, accessed on 11 Dec 2020 at 12:45 pm GMT. Please note: Past performance is not a reliable indicator of future results.
In the chart above, it is clear to see just how far down EasyJet’s share price is from its all-time high price level of 1,928p (GBP) made in 2015. Interestingly, the fall stopped at a historical ascending trend line support (green line) and has since tried to claw its way back up.
On the way up, the price has stalled around the 800p (GBP) level and created a horizontal resistance line (dotted blue line). If price can stay above this level then it could be a sign longer-term investors are willing to buy back in for a long-term bullish play.
Whether this is the best share to buy or not for a portfolio will largely depend on the investors' style. As EasyJet continues to face some headwinds and as its share price is near rock-bottom levels, it is considered more of a value investment rather than momentum growth (as the next pick is) and is most likely more suited for long-term patient traders.
Value investors often invest for the long-term so being able to buy shares with low fees while collecting dividend payouts is essential. Fortunately, with the Admiral Markets Invest.MT5 account you can do just that and more!
✅ Invest in thousands of stocks and ETFs from 15 of the largest stock exchanges in the world.
✅ Open an account with just €1 minimum deposit.
✅ Invest from just $0.01 per share with minimum transaction fees of just $1 on US stocks.
✅ Receive free real-time market data, with no delays, at no extra cost.
✅ Create a stream of passive income by collecting dividend payouts.
✅ Use the world-renowned MetaTrader 5 multi-asset class trading platform.
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✴️ #2 Adyen NV (ADYEN): A digital payment beast in the making?
Adyen is a Dutch payment company that has more than 3,500 customers around the world. The company provides merchant services online to help businesses accept electronic payments. Most interestingly, since listing its share publicly on the Euronext exchange (Amsterdam) in June 2018, its share price was up more than 350% towards the end of 2020.
With more people moving online and more businesses going online, many analysts are bullish on the prospects for digital payment providers. The sector is certainly one to watch but one that is becoming increasingly crowded. But with Adyen securing a European banking licence and licences in Australia, Singapore, and Hong Kong while securing deals with eBay it’s one to watch.
Source: Admiral Markets MT5 Supreme Edition, ADYEN, Weekly - Data range: from 10 Jun 2018 to 11 Dec 2020, accessed on 11 Dec 2020 at 13:45 pm GMT. Please note: Past performance is not a reliable indicator of future results. Five-year data not available.
In the long-term, weekly chart of Adyen’s share price it is clear to see the uptrend that developed as soon as the company listed on the Euronext exchange in June 2018. The trend is confirmed by the 50-period (red line) and 100-period (green line) exponential moving averages also moving higher and separating away from each other. This indicator is often used to help confirm the trend of a market and for levels of support and resistance where the market could turn.
This type of stock is much more suited for momentum growth based investors as it is in an in-demand sector. While investors could embark on the traditional form of investing in purchasing shares of the company, momentum growth stocks are often favoured by traders who speculate on the rising share price using Contracts for Difference (CFDs).
This product enables traders to trade on leverage (meaning they can control a large position with a small deposit) and also potentially profit from rising and falling markets. With Admiral Markets you can open a Trade.MT5 account and trade CFDs on thousands of different instruments across stocks, indices, currencies and commodities! To learn more and open an account today, simply click on the banner below:
Best shares to buy in the US stock market
The US stock market experienced a rollercoaster ride in 2020 with the S&P 500 stock market index crashing 35% lower during the coronavirus pandemic but then rallying nearly 70% higher from these lows to new all-time high price levels.
It is also helped that it was an election year which tends to outperform the rest of the election cycle years. With a new president in the White House also comes new ideas. Joe Biden’s focus on renewable energy, climate change and healthcare helped these sectors perform well in 2020 and are likely to do so in 2021.
But there are also some fears that changes to tax and a harder stance on some businesses from the new administration could affect stock market gains. Nonetheless, a CNBC survey of analysts expected an 8-22% upside for the S&P 500 index in 2021.
So what companies are shaping up to be the best shares to invest in 2021 for US markets? Let’s find out!
✴️ #1 Tesla (TSLA): An electric vehicle play that could race away?
Tesla was one of the hottest stocks for 2020 and many investors believe it could be the same for 2021. The electric vehicle maker’s share price was up more than 600% due to a variety of factors.
One factor was the inclusion of Tesla to the S&P 500 stock market index - one of the world’s most famous and respected indexes. The addition was announced in November and took place later in the year. However, Tesla shares were already surging before this news - they just accelerated on it!
One of the other big factors is that many countries are moving towards cleaner energy sources, leading governments to accelerate plans to transition from petrol/diesel vehicles to electric cars. The increase in demand has helped Tesla who are expanding their operations with new plants in Shanghai, Berlin and Texas.
▶️ Goldman Sachs increased its price target for Tesla to $780 - the highest on Wall Street - citing a shift towards battery-operated vehicles that is accelerating at a faster than expected pace.
Source: Admiral Markets MT5 Supreme Edition, TSLA, Weekly - Data range: from 24 Mar to 11 Dec 2020, accessed on 11 Dec 2020 at 14:45 pm GMT. Please note: Past performance is not a reliable indicator of future results. Last five-year performance: 2019 = +25.70%, 2018 = +6.89%, 2017 = +45.70%, 2016 = -10.97%, 2015 = +7.91%.
It’s clear to see the long-term uptrend in the weekly chart of Tesla’s share price above. Such high momentum-based growth stocks can be a challenge for investors in finding price levels to enter. The uptrend has been so strong that the price has only been pulling back to the 10-period moving average (blue line) on the weekly chart.
While the weekly moving averages could provide levels for investors, these types of strong-trending stocks tend to be the focus of lower timeframe traders who capitalise on the momentum. For example, traders may employ day trading, or swing trading strategies to capitalise on the upward movement on lower timeframes such as the 1-hour chart or 10-minute chart.
In most cases, this would be done using Contracts for Difference as traders are able to profit from rising and falling markets while utilising leverage. This means traders can control a large position using a smaller deposit. Admiral Markets provides traders with investing and CFD trading accounts.
Leverage potentially helps traders to achieve higher profits in the market. Of course, the same also applies to losses. Traders risk losing their deposit faster when using leverage – so use it cautiously!
You can learn more about day trading strategies by watching the following 51-minute video by a professional trader showing you five day trading strategies and how to limit your losses:
✴️ #2 Disney (DIS): A sleeping giant in streaming?
Disney is most likely a company that needs no introduction. Since being founded in 1923 it has come a long way with subsidiaries including well-known names such as Pixar, Marvel, Hulu, 20th Century Studios, Lucasfilm and its Disney Parks and Experiences division.
However, what has most investors excited about is the company’s move into online streaming with its Disney+ service. While the industry is filled with other streaming giants such as Netflix and Apple TV+, analysts still remain bullish regarding Disney’s venture. For example, Goldman Sachs increased its price target for Disney’s share price to $200, representing more than 150% upside from its 2020 lows.
Investors also liked Disney’s December 2020 analyst day which included:
▶️ Figures showing more than 86 million users were subscribed to its Disney+ service, beating its 5-year target of 60-90 million in just the first year of launching.
▶️ An announcement that it expects to reach 230 million to 260 million Disney+ subscribers by 2024.
▶️ A plan to increase subscription prices for key European and US markets by $1 or €2.
Source: Admiral Markets MT5 Supreme Edition, DIS, Monthly - Data range: from 1 Apr 2007 to 11 Dec 2020, accessed on 11 Dec 2020 at 15:45 pm GMT. Please note: Past performance is not a reliable indicator of future results.
Shares in Disney had a rocky ride in 2020 which included a near 45% drop during the first half of the year due to the coronavirus pandemic, before a more than 100% rally higher a new all-time high.
Much of the decline was due to the closure of Disney’s Park and Resorts division. This is one reason investors are liking the company as it now diversifies into online streaming. The 50-period (red line) and 100-period (green line) exponential moving averages are also moving higher confirming the uptrend, while providing areas from where price may turn and bounce higher.
Did you know that you can view real-time price charts of thousands of stocks and other asset classes such as foreign exchange, commodities and indices from the MetaTrader 5 trading platform provided by Admiral Markets? With this state of the art platform you can perform technical analysis, access technical research tools and trade or invest directly from it!
Start your FREE download today by clicking the banner below:
Best shares to buy in the Asia-Pacific market
Many analysts believe that 2021 is going to be a year of strong performance in emerging markets. After all, the emerging market is home to 85% of the world’s population and is now considered to be the next engine of global economic growth.
Japan, China and Hong Kong’s stock markets have all overtaken both European and UK in terms of market capitalisation. However, they are still someway of the size of the US stock market. Nonetheless, dramatic shifts of global power are taking place right now which is why investors are bullish on the Asia-Pacific region.
With Admiral Markets you can trade on:
✅ Top Australian bluechip companies from the ASX 200 index.
✅ Nearly 200 shares from the Tokyo Stock Exchange.
✅ Over 100 Chinese ADRs (American Depositary Receipts) which are traded on the Nasdaq and New York Stock Exchange.
Let’s have a look at some of the most interesting ones for 2021!
✴️ #1 NIO Inc (NIO): An electric vehicle play that beats Tesla?
While most investors have heard of Tesla, not many may have heard of NIO. Both companies are leaders in the electric vehicle market and are actively traded by millennial investors.
NIO is a Shanghai-based electric vehicle company that had revenues of a mere $720 million in 2018 compared to Tesla’s $21.4 billion. However, for most investors, NIO is an exciting long-term growth play that is well-positioned to take advantage of the emerging growth in China’s electric vehicle market.
▶️ Deutsche Bank’s Edison Yu believes NIO could become China’s next ‘iconic brand,’ while Daiwa analyst Kelvin Lau has a $59 price target on the stock.
Source: Admiral Markets MT5 Supreme Edition, NIO.US, Weekly - Data range: from 9 Sep 2018 to 11 Dec 2020, accessed on 11 Dec 2020 at 17:45 pm GMT. Please note: Past performance is not a reliable indicator of future results. Five-year data not available.
In the above weekly price chart of NIO’s share price, it is clear to see the initial weakness that developed from its initial public offering in September 2018. However, during the coronavirus pandemic of 2020 investors surged into NIO shares helping the stock to rally nearly 1,500% higher for the year.
While there are some headwinds such as how the relationship between US President Joe Biden’s administration and China develops, the electric vehicle sector is likely to be high on many investors’ watchlists. NIO is a brand that has no hype around it, unlike Tesla which many buy simply because of its maverick founder Elon Musk.
So, what’s on your shopping list for 2021?
How to buy shares online
Buying and selling shares online can be done in just three simple steps:
- Open a share trading account.
- Download your share trading platform.
- Open a trading ticket and take your first trade!
How to open your Invest.MT5 share trading account
If you haven’t done so already you can follow these steps to open a share trading account. If you have done so already, feel free to jump to the next section on how to download your share trading platform.
To open a share trading account simply visit the Admiral Markets homepage and click on the green button labelled Start Trading from the top menu:
Input your name, email, password and telephone number to Sign Up. Once this is done you will have instant access to the Trader’s Room! From here, you can open live or demo accounts for investing and trading via CFDs, access your wallet for deposits and withdrawals and premium analytic products.
You can easily open a demo account by clicking on the Open New Demo Account text and then fill in your account type:
From here you can open your any type of demo accounts including Invest.MT5 for investing or the Trade.MT5 and Trade.MT4 accounts for CFD trading on stocks and other asset classes. When you are ready to go live you can open a live account from the same place and fill out a simple questionnaire and go through a verification process. Now you are ready to download your MetaTrader 5 share trading platform.
How to download your MetaTrader 5 share trading platform
From the Trader’s Room homepage, simply select Trading Platforms on the left-side menu. This will then give you access to download the MetaTrader 5 trading platform for PC and Mac but you can also use the Web Trader platform as well.
Simply follow your computer’s prompts to complete the download of your MetaTrader 5 share trading platform.
An example of the Admiral Markets MetaTrader 5 trading platform showing the price chart of Disney shares, the Stochastic trading indicator, a list of symbols and an open order ticket.
Disclaimer: Charts for financial instruments in this article are for illustrative purposes and do not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admiral Markets (CFDs, ETFs, Shares). Past performance is not necessarily an indication of future performance.
How to place a trade in the MetaTrader 5 share trading platform
Open up your share trading platform and follow these steps to place a trade:
- Open the Market Watch window by selecting View from the menu at the top of the platform or by pressing Ctrl+M on your keyboard. This will open up a list of tradable symbols on the left side of your chart.
- Right-click on the Market Watch window and select Symbols or press Ctrl+U on your keyboard.
- This will then open the window shown below which details all the markets available for you to trade on. From here you can add a wide variety of shares to your Market Watch window by selecting the relevant share or country and clicking Show Symbol.
An example of the Admiral Markets MetaTrader 5 trading platform showing the Symbols window.
After clicking the OK button in the Symbols window you can now view the different instruments in the Market Watch window. To view a price chart of a company’s share price, simply left-click on one of the stock symbols in the Market Watch window and drag it onto the chart area. From here you can now open up a trading ticket:
- Right-click on the chart.
- Select Trading.
- Select New Order, or press F9 on your keyboard.
- A trading ticket will open for you to input your entry price, stop loss and take profit levels and your share trading size (volume).
An example of the Admiral Markets MetaTrader 5 trading platform showing a trading ticket.
To learn more about the MetaTrader 5 trading platform, feel free to watch the video below:
Why buy stocks and shares with Admiral Markets?
Here are just a few reasons why you should consider buying and selling shares with Admiral Markets:
✔️Trade with a well-established, regulated company which includes regulation from the UK’s Financial Conduct Authority.
✔️Access the fastest and most popular online share market trading software called MetaTrader which you can use on PC, Mac, Web, Android and iOS operating systems.
✔️Open an Invest.MT5 account with just €1 minimum deposit and invest from just $0.01 per share with minimum transaction fees of just $1 on US stocks.
✔️Open a Trade.MT5 account to trade CFDs and potentially profit from both rising and falling markets while trading on margin.
One of the best ways to get started is to simply test all of the features, products and services provided by Admiral Markets for yourself! You can do this by opening a FREE demo trading account which enables you to trade and invest in a virtual trading environment until you are ready to go live.
Click on the banner below to open your free demo account and start 2021 the right way: ▼▼▼
About Admiral Markets
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