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10 Explosive Stocks That Could Double Your Money in 2021

By Rich Duprey - Oct 23, 2020 at 11:00AM
Money raining on person smiling and celebrating.

10 Explosive Stocks That Could Double Your Money in 2021

Returns that could be twice as nice

Investors were taken on a roller-coaster ride in 2020 that saw many stocks crash in March and subsequently regain all the lost ground and then some.

Although there was good reason for doubt at the beginning of the year, the volatility should remind investors to have a sufficient long-term mindset so as to not get spooked out of a stock only to see it turn around and rocket higher.

Even those that have gained can continue to do so because good businesses can continue performing well for extended periods of time. Pulling your money out of a stock can seriously undermine your total returns over the long haul.

With that in mind, though, here are 10 companies that could double your money in 2021.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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Lab technicians looking at a specimen

1. CRISPR Therapeutics

Gene-editing specialist CRISPR Therapeutics (Nasdaq: CRSP) more than doubled in value in 2019. And it's on track to double again in 2020 -- and could very well double again in 2021.

The biotech leads other gene-editing companies in hematology, with it and partner Vertex Pharmaceuticals targeting novel treatments for beta thalassemia and sickle cell disease.

The reason CRISPR is so far out in front is its CRISPR platform is simpler to use, costs less than competing gene-editing techniques, and can accelerate the editing process, offering the potential for scientists to cure genetic diseases once thought incurable.

ALSO READ: The 3 Best Stocks to Invest $100 in Right Now

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Woman taking a selfie on a smartphone while on a rooftop

2. Fastly

As you might expect from its name, Fastly (Nasdaq: FSLY) accelerates the delivery of data and apps over the internet. It does this through content delivery networks and edge computing, which taps into servers located closer to users to reduce loads on main source servers.

The latter market is really only just being tapped into, and Fastly is a pioneer whose services are used by companies such as Shopify and Spotify. Fastly's biggest customer, though, is TikTok, the Chinese video-sharing app that's hugely popular with teens but is suspected of being a national security risk by the Trump administration.

Fastly just reduced its revenue guidance for the third quarter because of performance issues at TikTok arising from the international brouhaha, causing Fastly's stock to slump 30%. Yet if a sale to Oracle can be worked out, TikTok can regain its balance, boosting Fastly's base again.

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Woman holding a box with clothes in it

3. The RealReal

Retail is a tough space today, but The RealReal (Nasdaq: REAL) is a unique player in that its platform is used to sell used clothes, a segment that's on fire.

Within what's called the circular economy, The RealReal has staked itself out as the premier upscale goods site for selling authenticated, consigned luxury merchandise. It recently signed on Gucci and has on its roster other well-heeled brands including Chanel, Louis Vuitton, and Prada.

Because of the pandemic, brands have been seeking ways to shed excess inventory in a way that doesn't demean their cachet, and The RealReal has seen a 46% increase in brand consignments since the COVID-19 outbreak.

Offering a virtual consignment is a benefit while physical retailers are still having difficulty in luring consumers to the mall, giving The RealReal a chance to gain in the months ahead.

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Man making online payment with dollar signs floating out of smartphone

4. Square

Digital payment platform Square (NYSE: SQ) has thrived as the go-to small business provider for point-of-sale devices, loans, and other analytical tools. More recently it has seen significant growth in its peer-to-peer Cash App payment system, which recently hit 30 million users. While Venmo and Zelle, which is owned by seven of the largest U.S. banks, make up the bulk of the market, Square has a real opportunity to see its Cash App become a significant driver of profit margin expansion and could be a billion-dollar business for the payments provider.

ALSO READ: 3 Top Stocks That Can Make You Bank This Decade

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Person looking at Pinterest images on tablet.

5. Pinterest

Idea-aggregation site Pinterest (NYSE: PINS) might be mostly thought of as a place to go to get the creative juices flowing. But as the pandemic locked people in their homes and they looked for things to do, helping them buy the products and tools to achieve those ideas has become a big opportunity.

Earlier this year Pinterest launched its Verified Merchant program, which maximizes the availability of Shoppable Pins. More recently it added a Shop tab to Pinners' boards that will let them see in-stock products based on what they’ve been pinning.

E-commerce is still in its early days for Pinterest, but considering it has 367 million monthly active users, this could be a huge revenue-generating opportunity.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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Websites flying out of computer monitor

6. Shopify

If the pandemic taught us anything, it's that e-commerce is the future of retail. Even without a physical presence, retailers were able to meet the demands of consumers through online shopping. Powering many of those enterprises was Shopify (NYSE: SHOP), which served as the backbone to help them set up shop or expand their existing operations.

Second-quarter sales nearly doubled from the year-ago period, while gross merchandise volumes soared 119%. Shares are up 170% this year, and over 240% higher for the last 12 months. But with eMarketer forecasting e-commerce to account for less than 15% of total retail sales in 2020, it means there is significant growth potential still ahead of Shopify.

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Women wearing aerie brand loungewear

7. American Eagle Outfitters

Once known primarily for its logoed lifestyle clothing that nearly became irrelevant to today's teen consumer, American Eagle Outfitters (NYSE: AEO) transformed itself into a necessary retailer amid an overall decline in shopping malls, where it remains a fixture.

Yet it wasn't its self-named stores that engineered the turnaround, though they're benefiting. too. Rather, its Aerie lingerie brand is challenging the aging Victoria's Secret. Sales soared 32% this past quarter as digital sales rocketed 142% higher, but with just 335 stores compared with nearly 1,000 American Eagle outlets, there is still a tremendous runway in front of this growing lingerie brand.

ALSO READ: 5 Unstoppable Stocks to Buy With $5,000

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Mickey Mouse at a Disney theme park.

8. Disney

Few stocks have been battered on more fronts by the pandemic than Disney (NYSE: DIS). The entertainment powerhouse has seen its theme parks, movies, retail stores, and ad-supported broadcast channels all disabled because of the COVID-19 outbreak. Streaming video over Disney+ has been the one bright spot.

The symbiotic relationship among each of these avenues that was such a revenue driver during normal times became a significant liability when the economy was all but shut down. Even as a sense of normalcy returns, visitors are scarce at its parks (and its California venue remains closed), moviegoers are limited to how many seats they can fill at the theater, and ad budgets are still skeletal for the immediate future.

Disney's stock is down 14% year to date, but all of these segments will bounce back, and undoubtedly quite strongly when they do, which makes the House of Mouse's stock a bargain at these levels.

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9. Teladoc Health

Teladoc Health (Nasdaq: TDOC) is the leading player in virtual healthcare via app-based doctor consultations. It's a position that will expand dramatically after the company completes its $18.5 billion acquisition of Livongo Health as it moves into the complementary sphere of chronic disease management, too.

The deal gives Teladoc the opportunity to offer end-to-end patient care through one portal. With an estimated $121 billion addressable market in the U.S. alone, Teladoc should be able to further pad its lead in virtual care as patients seek more ways to lower their total cost of healthcare.

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Hand putting out a cigarette in an ashtray.

10. Altria

Smoking rates continue to decline while cigarette alternatives are on the rise, and tobacco giant Altria (NYSE: MO) finds itself perfectly positioned amid all of them.

Its Marlboro brand of traditional cigarettes still commands 43% of the market, even as the pool of smokers shrinks every year. But it also is manufacturing, marketing, and selling in the U.S. the IQOS heated tobacco device from Philip Morris International, so far the only electronic cigarette currently approved for sale while having also earned a reduced-risk label from the Food and Drug Administration.

Despite the woes that followed Altria's $12.8 billion investment in Juul Labs, that e-cig still holds a 53% share of the market, and Altria has also invested in nicotine pouches and snus, as well as smoking-cessation products.

Altria's stock is down 25% from recent highs and trades at less than nine times next year's earnings estimates. With significant pricing power and customer retention, this tobacco giant is ready smoke the markets.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Previous

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Blocks showing percent marks follow a climbing red arrow

Double or nothing

While low-priced stocks are seen as having an easier time in doubling in value, letting your winners run also ensures you don't cut short the success of your portfolio's best performers.

Don't go into the stock market looking to double your money in a short period of time, but don't be blind to the opportunities that exist to help you reach that goal, too. These 10 stocks should go a long way toward lifting your portfolio higher in 2021.

Rich Duprey owns shares of Altria Group. The Motley Fool owns shares of and recommends CRISPR Therapeutics, Fastly, Livongo Health Inc, Pinterest, Shopify, Spotify Technology, Square, and Walt Disney. The Motley Fool recommends Vertex Pharmaceuticals and recommends the following options: long January 2021 $60 calls on Walt Disney. The Motley Fool has a disclosure policy.

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