Quite a few stocks on Robinhood's list of the 100 most popular stocks on its trading platform could be winners next year. Many of them have delivered impressive gains in 2020.
However, there are a few on the list that I think are almost surefire picks to report better financial results next year than they did this year. Here are three popular Robinhood stocks set to generate huge sales growth in 2021.
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1. Moderna
This one is a no-brainer. You're unlikely to find a better pick to deliver strong sales growth in 2021 than Moderna (MRNA 1.55%).
The biotech is set to rake in a boatload of cash next year from its COVID-19 vaccine. Moderna has agreements in place to supply over 420 million doses of mRNA-1273 to several countries, including 200 million doses to the U.S. At the low end of the company's announced price tag for the vaccine, that amounts to well over $13 billion on the way in 2021.
In the first three quarters of 2020, Moderna recorded revenue of less than $233 million. All of this stemmed from collaborations and grants rather than actual product sales. Moderna is a lock to post dizzying top-line growth next year.
It remains to be seen, though, whether or not the biotech stock will turn in another great performance. Moderna's shares have skyrocketed more than 600% so far this year. Much of the potential for mRNA-1273 is already baked into the share price now. However, it's possible that stumbles by other coronavirus vaccines could open up even greater opportunity for Moderna and pave the way for another year of big gains.
2. Disney
Disney (DIS 0.15%) isn't as much of a sure bet to deliver massive sales growth in 2021 as Moderna is. However, expect the House of Mouse to nonetheless see sales skyrocket.
This year has been abysmal for Disney in several respects. The COVID-19 pandemic forced the company to shut down its theme parks for longer than ever before. Disney's studios delayed the debuts of multiple movies because theaters were closed. The company's cruise lines completely shut down. Its TV networks endured advertising revenue declines.
Thanks to Moderna and other drugmakers with COVID-19 vaccines, though, next year should be a much better one for Disney. There's reason to be cautiously optimistic that the U.S. and the world could turn the corner on the pandemic. That would set the stage for Disney to bounce back in a big way.
The company's Disney+ has been an enormous success and could also drive additional tremendous growth. With new Marvel and Star Wars movies and series on the way, Disney should be poised for a monster year in 2021.
3. Square
Square (SQ 0.18%) is another company that experienced both good news and bad news in 2020. Let's start with the bad news. The pandemic hurt many small and medium-sized retailers who form the core of Square's payment processing customer base.
Now for the really good news: Cash App, its peer-to-peer digital payments app, has delivered fantastic revenue growth so far this year. The number of average daily customers on the app nearly doubled year over year in Q3.
Sure, there are some questions about whether or not the pandemic-fueled momentum for Cash App will continue. I suspect that it will. But there's no doubt whatsoever that an end to coronavirus-related lockdowns will boost Square's payment processing business. That's what hopefully will happen in 2021.
Square's share price might seem on the pricey side after soaring more than 270% year to date. Mizuho analyst Dan Dolev, though, thinks the stock could jump to $300 -- a premium of nearly 30% above Square's current price. I won't be surprised if Square indeed delivers this kind of strong performance next year.
