10 Stocks That Could Double Your Money in 2021

As difficult as it might be to believe, 2020 has almost come to an end. Now that the new year is nearly upon us, there’s no better time than the present to work on cultivating a balanced, diversified stock portfolio. Whether you’re a seasoned investor or have recently embarked on your investing journey, there’s something for everyone on this list of 10 stocks 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.

A leading manufacturer of streaming devices, Roku (NASDAQ: ROKU) has had an incredible year of growth. In fact, the company’s performance is fast outpacing Netflix’s, and shares of Roku have climbed by more than 130% since January.

In the third quarter, the company grew its net revenue and account growth rate 73% and 43%, respectively, on a year-over-year basis. Management also reported that Roku’s third-quarter gross profits were up 81% from Q3 2019, while streaming hours reached the 14.8 billion mark during the three-month period. As fewer people go to movie theaters and demand increases for alternative means of accessing entertainment, companies like Roku are ideally situated to pivot and cater to the fast-changing needs of consumers.

ALSO READ: If You Put $1,000 Into Roku Stock Last January, Here's How Much You'd Have Now

Whether you’re looking for a specialized mug, artisan jewelry, or one-of-a-kind furniture by an expert craftsman, e-commerce website Etsy (NASDAQ: ETSY) has it all. The innovative online marketplace is changing the way people shop, and more buyers and sellers are flocking to the platform than ever before in the wake of the COVID-19 pandemic.

The stock has gained 266% since the beginning of the year and is currently trading at 95 times trailing earnings. Etsy’s third-quarter financial results blew investors’ expectations out of the water -- its revenue rose 128% compared with the same interval in 2019. There were also 42% more active sellers on Etsy during Q3 2020 than in Q3 2019, while the number of active buyers on the platform rose 55.4% year over year.

While the COVID-19 pandemic has certainly been a catalyst that’s spurred growth across the e-commerce sector, these shopping patterns won’t simply go away once a vaccine has been widely distributed. Analysts estimate that Etsy will grow its earnings by nearly 60% every year over the next five years alone. If you’ve been holding off on buying this stock up until now, it’s not too late to invest in Etsy for its growth potential.

According to global advisory firm Staffing Industry Analysts, more than 50 million people performed gig work in 2018, with expenditures in the gig-based labor market hitting roughly $4.5 trillion that year. As “the world’s largest online workplace,” Upwork (NASDAQ: UPWK) presents a unique investment opportunity with plenty of upside to spare. The stock is still fairly cheap at around $30 per share, but it has gained more than 200% since January.

When Upwork reported its third-quarter financial results on Nov. 4, the company had surpassed its guidance for the three-month period. Upwork’s third-quarter revenue represented 24% growth from Q3 2019, while the company’s marketplace revenue also grew double digits year over year at 26%.

Micron Technology (NASDAQ: MU) makes semiconductor devices. The company is quickly gaining steam in this highly lucrative industry, one that is expected to achieve an $831.5 billion valuation by 2024.

During the fourth quarter of fiscal 2020 (which ended on Sept. 3), Micron Technology reported 24% year-over-year revenue growth, even though its full-year revenue declined from fiscal 2019.

But investors could be looking toward a much brighter future. Management updated the company’s Q1 fiscal 2021 revenue guidance on Dec. 1, and shares were up 5% by trading close that day. The company is now projecting revenue of $5.7 billion for the upcoming quarter, which is considerably higher than its previously forecast Q1 fiscal 2021 revenue of $5.2 billion. Analysts are projecting that Micron Technology will grow its revenue by more than 14% per year over the next five years.

ALSO READ: 3 5G Stocks to Buy in December

Bank stocks haven’t had an easy time of it this year, but Axos Financial (NYSE: AX) continues to beat the odds. In fact, the bank holding company grew its net income 18% in fiscal 2020 and increased its total assets by more than 23% from fiscal 2019.

Axos Financial’s Q1 fiscal 2021 performance was nothing short of dazzling, with the company’s net income up 30% from the year-ago period. Its loan and lease portfolio also surged 12% year over year, while total deposits were up roughly 15% compared with the same quarter in fiscal 2020.

In the company's Q1 report, CEO and President Greg Garrabrants expounded on the company’s growth story and factors that have helped it avoid the pitfalls the wider banking industry currently faces. “Our diverse consumer and commercial banking and securities businesses continue to generate strong earnings growth, as reflected in the 33.3% and 14.7% year-over-year increases in our earnings per share and our book value per share, respectively. We achieved a record quarter in mortgage banking as a result of 148% year-over-year increase in single-family agency loan originations and robust gain-on-sale margins.”

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.

The Trade Desk (NASDAQ: TTD) is a cloud-based platform that provides state-of-the-art digital advertising solutions to a global clientele. Shares of the company have surged by close to 240% from the beginning of the year to the time of this writing.

Astronomical increases in ad spending this year across a diverse assortment of industries have led to The Trade Desk’s top and bottom lines seeing explosive and unprecedented growth. The company’s third-quarter revenue rose 32% year over year, while its net income grew by more than 100% from Q3 2019.

The Trade Desk has maintained a customer retention rate of 95% for half a decade, continuing to do so during this past quarter. Management is currently projecting between $287 million and $291 million in revenue for the final quarter of 2020, a considerable jump from its third-quarter revenue of $216 million.

Buying airline stocks is a pretty risky business these days. But investors who are willing to withstand the near-term volatility may wish to take a modest position in airlines with solid underlying fundamentals in hopes of a notable rebound in 2021. Southwest Airlines (NYSE: LUV) is one of those stocks that could make a comeback next year, even though travel patterns aren’t expected to return to prepandemic normalcy for at least a couple of years beyond that.

There’s no doubt that Southwest’s current revenue situation is bleak -- the company reported a 68% drop in operating revenue during the third quarter. However, Southwest also has more liquidity than many of its competitors ($15.6 billion). By contrast, its long-term debt (not counting current maturities) is far less at $10.1 billion.

ALSO READ: A Vaccine Is Coming. Here Are the Airlines That Will Recover First

For the more risk-tolerant investors in search of travel stocks to buy on the dip, another potential contender is Delta Air Lines (NYSE: DAL). The company has been able to avoid pilot furloughs, despite reporting an average cash burn of $24 million a day and nearly $7 billion in pre-tax losses during the third quarter. Delta closed the third quarter with $16.5 billion in cash and cash equivalents, just shy of its total current liabilities ($19.7 billion).

Delta CEO Ed Bastian stated, “While our September quarter results demonstrate the magnitude of the pandemic on our business, we have been encouraged as more customers travel and we are seeing a path of progressive improvement in our revenues, financial results and daily cash burn.”

It’s likely not a prudent move to take up a substantial position in this company at the moment. That being said, investors willing to ride out the ups and downs that Delta is sure to experience over the next few years could eventually see some encouraging returns as travel patterns slowly start to resume in 2021 and beyond.

Innovative Industrial Properties (NYSE: IIPR) is a real estate investment trust (REIT) company that focuses on acquisitions in the medical-use cannabis sector. The top stock pays a dividend that yields 2.9%, which is distributed to shareholders on a quarterly basis.

Innovative Industrial Properties’ third-quarter revenue surged nearly 200% compared with the same quarter in 2019, while net income grew 205% year over year. The stock had zero secured debt on its balance sheet at the close of the third quarter, with a robust $161.1 million in cash and cash equivalents.

Fiverr (NYSE: FVRR) is another top freelance marketplace that has benefited from increased demand for remote work and services during the ongoing pandemic. Shares of Fiverr have swelled by a mind-blowing 700% from where the stock was trading in January.

Management reported third-quarter revenue growth in the upper double digits (88%), while active buyers on the platform surged 37% during the three-month period. The company has boosted its guidance for the full-year 2020 and is projecting between 74% and 75% revenue growth compared with 2019.

Top analysts are expecting great things from Fiverr in the coming years, even though it’s inevitable that pandemic-driven growth figures may wane at some point. They project that the company will grow its revenue by more than 77% every year for the next five years alone.

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.

There’s no magic bullet when it comes to investing in the stock market. However, even during times of widespread economic uncertainty, such as those in which we are currently living, there are always viable investment opportunities.

If you haven’t already, work on crafting a well-developed personal investment thesis. Ensure that you have a solid grasp of the personal level of risk you’re willing to introduce into your portfolio before incorporating additional companies into your basket of stocks for the new year.

The more risk-averse investor searching for high-growth opportunities may prefer to stick with tried-and-true stocks in industries that have outperformed the market or remained largely unaffected during the pandemic (e.g., tech).

On the other hand, investors willing to navigate imminent bumps in the road could find attractive buying opportunities in 2020’s more-browbeaten industries (such as travel), although it’s advisable to make any such stocks a smaller slice of your overall portfolio. If you do decide to invest in a riskier stock, it’s a good idea to ensure that the company has enough liquidity to support the near term and/or services that serve a particular niche with enough of a consumer base to generate long-term growth after negative trends from the pandemic subside.

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Axos Financial, Etsy, Fiverr International, Innovative Industrial Properties, Netflix, Roku, and The Trade Desk. The Motley Fool recommends Delta Air Lines, Southwest Airlines, and Upwork. The Motley Fool has a disclosure policy.