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8 Winning Stocks to Make Money in 2021

By Rich Duprey - Jan 11, 2021 at 1:23PM
Golden piggy bank and 2021

8 Winning Stocks to Make Money in 2021

Stay focused on your financial goals

So 2021 is starting off to be just as interesting and crazy of a year as 2020, but investors should stay laser focused on their own goals and not all the noise that's swirling around.

In that vein, concentrate on finding stocks that will make money in 2021 as if your financial well-being depended upon it (because it does) and look to the following eight companies to unlock that achievement.

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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Apple storefront at dusk.

1. Apple

Not enough attention is focused on Apple's (NASDAQ: AAPL) App Store, which last year helped its services revenue -- Apple's second-largest segment -- jump 16% to over $53.8 million, primarily due to App Store sales. The company just announced that consumers spent $1.8 billion during the holiday week spanning from Christmas Eve to New Year’s Eve and set a single-day record on New Year's Day with $540 million spent on digital products.

The iPhone is still Apple's main path to growth, and its supplier Taiwan Semiconductor Manufacturing just reported record quarterly revenue on high demand for 5G iPhones, indicating the entire Apple ecosystem is still firing on all cylinders heading into 2021.

ALSO READ: 3 Cheap Stocks to Buy in 2021

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DraftKings sports betting app on smartphone

2. DraftKings

Daily fantasy sports and sports betting leader DraftKings (NASDAQ: DKNG) went public last April through a merger with a special purpose acquisition company (SPAC), one of the most popular ways to take a company public these days. Its stock has quadrupled in value since, but there's good reason to think it can continue that streak in 2021.

With a large built-in fantasy sports fan base, it has a ready audience for sports betting, which has helped it become the second-largest sportsbook in the country behind FanDuel. As more states legalize sports wagering, DraftKings will continue to be one of the leading players in the league. New Jersey has become the sports betting capital, and next door New York is now mulling over how best to implement sports betting in its state.

With an even more populous state and the home to championship teams across all pro leagues, it could be a lucrative opportunity for everyone. Online sports betting has been what's kept casinos afloat during the pandemic, which should continue to fuel DraftKings' rise.

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Additive manufacturing 3D printer

3. Nano Dimension

Nano Dimension (NASDAQ: NNDM) is disrupting the 3D printing field with proprietary dielectric ink used in the additive manufacturing process of creating multilayered chips and advanced electronics components. Its next-generation 24/7 DragonFly LDM has been bought by 60 customers so far, and Nano recently announced 10 customers upgraded to it from older machines.

That sounds like a small operation -- and it is -- but one that could soon be rapidly growing as the company's printing technology enables users to have on-site prototyping in a matter of hours instead of weeks.

The risk is the growth-stage company has been diluting investors with stock offerings to raise cash. This happened most recently at the end of December, when it sold 33 million shares at $7.50 each, a near 18% discount to where it was trading. But the company said it planned to use the money for potential deals. This year could be when Nano Dimension really takes off.

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NIO E6 coupe driving on city street.

4. NIO

NIO (NYSE: NIO) has been a standout performer in what is becoming an increasingly crowded field of Chinese electric vehicle (EV) manufacturers. Because Beijing is pushing for the massive adoption of alternative-powered cars, the market is exploding, and NIO has emerged as one of the leaders.

It also just revealed its newest EV sedan features autonomous driving capabilities and a larger battery pack with a reported range of over 600 miles. And subscribers to NIO's new battery swap service can change their car batteries in less than five minutes at swap stations rather than the more traditional and slower route of recharging their car at an outlet.

But competition is fierce, notably with Tesla's (NASDAQ: TSLA) Model 3, which is made in Shanghai; the Warren Buffett-backed BYD (OTC: BYDDY); and XPeng (NYSE: XPEV), which also produces luxury EV sedans. New, lower-cost models are coming from NIO, too.

ALSO READ: Your 3 Best Profit Opportunities in 2021

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A cruise ship at sea

5. Norwegian Cruise Line Holdings

Although the cruise ship industry ran aground in 2020 because the COVID-19 pandemic kept all ships in port, Norwegian Cruise Line Holdings (NYSE: NCLH) has the potential to be a big winner in 2021.

Broad distribution of coronavirus vaccines here and abroad will allow the public to feel confident once more about taking cruises just as ships set sail again this year. Norwegian has a competitive advantage with more cruise ships that are smaller and dedicated to luxury voyages than freestyle cruising versus either of its bigger rivals. That will play well with a public looking to avoid large crowds.

Norwegian has sufficient cash to last out the storm. And with pricing having stabilized, even after accounting for discounting due to credits given for canceled voyages, there should be a clear path toward returning to profitability.

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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Illustration of facial recognition software in use on city street

6. Palantir Technologies

Data analytics firm Palantir Technologies (NYSE: PLTR) counts among its customer base the CIA, National Security Agency, FBI, defense agencies, and more.

Those agencies typically use Palantir's primary platform, Gotham, which it says "enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants."

Its newest platform, Foundry, is used by the aviation industry after it was first adopted by Airbus. The technology allows businesses to merge capabilities between back-end data management systems and their front-end data analysis to optimize their technological infrastructure. It's been used by pharmaceuticals like Germany's Merck KGaA (OTC: MKKGY) and information and communication giants such as Fujitsu, which just became Palantir's first distributor of Foundry modules in Japan.

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Smiling family in front of a house with a For Sale sign.

7. Rocket Companies

Mortgage lender Rocket Companies (NYSE: RKT) has been a disappointment since going public in August, up only 10% compared with a 15% gain by the S&P 500 in that same time frame. But 2021 could be a year for better growth.

The Federal Reserve predicts housing prices will rise at about half the rate they did in 2020, which ought to encourage more buyers to purchase homes, as could record-low mortgage rates. That should boost the prospects of Rocket, the parent of Quicken Loans and Rocket Mortgage, and because it sells off the loans it originates rather quickly, it has lower risk than other lenders.

Also, it doesn't have large numbers of sales agents, preferring instead to allow its Rocket app perform most of the grunt work, thus keeping expenses low. While its stock will rise and fall based on the overall health of the housing market, this could be another good year for Rocket Companies to rise.

ALSO READ: Start 2021 Off Right: 3 Top Tech Stocks to Buy Now

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White Tesla Model X on the road.

8. Tesla

As noted when discussing NIO, the expansion by Tesla (NASDAQ: TSLA) into China to capture a large part of the burgeoning EV market there represents a unique opportunity to see sales really take off.

Analysts now expect Tesla to deliver as many as 1.7 million EVs in 2025, a 30% increase over prior forecasts -- a prediction that Elon Musk, who just became the world's richest man, agrees is doable.

There's no question Tesla's valuation has risen to dizzying heights, up over 800% in the past year and leading some to question the sanity of the analyst upgrades. But with Tesla really being two companies -- one an EV automaker and the other an energy company -- there are those who believe the latter can become a $75 billion business in its own right, which could justify a further increase in the carmaker's stock.

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Person leaping chasm from 2020 to new year 2021

A special moment in time

The whirlwind of a year we just left behind could give rise to a volatile 2021. That means investors need to be ready to capitalize on rare opportunities to continue making money this year.

Sure, we could be building up into another gigantic bubble that will soon pop -- something we've been warned will happen for years now. Or it could be yet another unique chance to increase the value of our portfolios yet again.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool owns shares of Palantir Technologies Inc. The Motley Fool has a disclosure policy.

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