Top 15 Stocks for 2021

Whether you’ll be investing in the stock market for the very first time in 2021 or are already a seasoned investor, choosing the right companies for your portfolio is particularly challenging in today’s market climate. Some stocks are still trading at historic lows, while others have risen to such steep valuations that investors are doing double or triple takes before buying in.

If you’re on the hunt for stocks that have a stellar track record of delivering value and growth to shareholders and can maximize your long-term gains through economic thick and thin, you’ve come to the right place. Here are 15 top stocks to buy in 2021 that you can hold for the next decade or longer.

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.

E-commerce is one of the few sectors that has boomed to new heights of success even as the economy has struggled. Part of this industry’s recession resilience can be attributed to the ever-growing popularity of online shopping. The fact that millions of people worldwide have been forced to stay at home for extended periods has also given way to enhanced patterns in digital shopping trends.

As one of the largest e-commerce companies in the world, Amazon (NASDAQ: AMZN) has continued to expand its market presence at all stages of the pandemic and return exponential growth for its shareholders. The stock has swelled nearly 70% over the past 12 months. And in the first three quarters of 2020, the company delivered net sales growth of 26%, 40%, and 37%, respectively.

Amazon’s diverse business model that encompasses a variety of industries from tech to entertainment drives above-average growth, and there’s no telling which new sector the company will enter next. Not only is this unstoppable stock a screaming buy for both conservative and risk-tolerant investors, it’s also one you can easily hold in your portfolio forever.

ALSO READ: Have $1,000? 3 Top Stocks to Buy in 2021 That You Can Hold for Decades

Zoom Video Communications (NASDAQ: ZM) has risen to popularity as a top stay-at-home stock, but the company has far more to offer investors beyond this near-term hype. Its platform has proven to be an integral tool for what is an increasingly remote workforce -- and one that won’t simply evaporate once the pandemic ends.

An October survey conducted by freelance marketplace Upwork found that “nine months into the pandemic, 41.8 percent of the American workforce remains fully remote.” The survey also reported, “By 2025, 36.2 million Americans will be remote, an increase of 16.8 million people from pre-pandemic rates.” Zoom is ideally positioned to meet the growing demand for remote workforce solutions, not to mention its value as a way for people to stay connected with friends and family around the world.

Zoom reported its revenue up 367% year over year in the third quarter of the company’s fiscal 2021 (ended Oct. 31). Management expects the company’s total fiscal 2021 revenue to hit nearly $3 billion, while analysts think the company can grow its average annual earnings by more than 130% over the next five years.

Teladoc (NYSE: TDOC) was undoubtedly one of 2020’s top stocks. The company’s fierce presence in the digital health market is only increasing with time as Teladoc continues to eclipse other competitors in telemedicine.

Teladoc made two major acquisitions in 2020 -- integrated virtual care platform InTouch Health and applied health signals provider Livongo. These acquisitions significantly expanded Teladoc’s market share while establishing the company as a full-service provider of a range of digital health solutions that cuts out the middleman and streamlines the user’s experience.

In the January-September period of 2020, Teladoc reported 79% revenue growth from the same time in 2019. User visits shot up by more than 160% during this period as well. Teladoc was delivering jaw-dropping growth before the pandemic, and as we step into 2021, the company continues to present impressive upside for long-term investors.

Fastly (NYSE: FSLY) is a leading cloud computing services provider. The company operates in a market that has exhibited remarkable recession resilience since the pandemic started. Cloud computing is an incredibly lucrative market as well -- one that achieved a valuation of $266 billion in 2019.

Shares of Fastly have surged by 290% over the trailing 12 months as it continues to deliver robust revenue growth despite economic headwinds. In the third quarter of 2020, the company reported its revenue up 42% year over year, while its dollar-based net expansion rate rose 10% from the prior quarter.

Fastly has nearly $310 million in cash and cash equivalents, and a lesser $96 million in total liabilities, so liquidity is another point of strength for the company. Analysts think the company can grow its average annual earnings by 30% over the next five years alone.

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Another top contender for the recession-proof portfolio, DocuSign (NASDAQ: DOCU) continues to benefit from the increasingly digital age we live in. Over the past 12 months, investors have watched it surge from about $75 a share to its current share price of around $230.

The company entered the pandemic stock market from a place of strength. It reported 39% year-over-year revenue growth in fiscal 2020 (ended March 12), while billings and subscription revenue both grew 38% during that 12-month period.

DocuSign’s performance throughout its fiscal 2021 has been nothing short of stellar. And in the company’s third quarter (ended Oct. 31), it grew its total revenue 53% from the year-ago stretch while generating $38 million in free cash flow. CEO Dan Springer said, “As companies accelerate the digital transformation of their business and agreement processes, DocuSign's role as an essential cloud platform continues to grow.”

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 marijuana industry tends toward volatility as a rule, but some stocks in this sector blew investors’ expectations out of the water last year. Green Thumb Industries (OTC: GTBIF) was one of these remarkable few.

Green Thumb owns a portfolio of cannabis brands that feature a range of products from vaporizer pens to medical cannabis. The company also operates more than several dozen different retail store locations across the U.S. In its financial statement for the third quarter of 2020, management reported that Green Thumb’s revenue grew 131.1% year over year, bringing its current assets to just shy of $160 million and its cash position to $78 million.

Shares of the company have grown by approximately 176% over the past 12 months. As Green Thumb continues to expand its retail presence and portfolio of brands, and cannabis legalization grows, shares of the company could continue to skyrocket. Risk-tolerant investors would do well to seize the opportunity to share in the company's ongoing success and its exceptional growth potential.

Shopify (NYSE: SHOP) is another invincible e-commerce stock that has consistently proven its mettle since the pandemic began. Shares of the company are trading at a premium, up 170% from its price just a year ago.

The pandemic continues to drive an onslaught of new buyers and sellers to Shopify’s platform, as evidenced by its notable balance sheet growth during each of the first three quarters of 2020. In these periods, the company’s total revenue grew 47%, 97%, and 96%, respectively. Shopify also reported that its gross merchandise volume during these quarters rose 46%, 119%, and 109% compared with their respective year-ago stretches.

With analysts projecting that Shopify will deliver triple-digit earnings growth over the next five years alone, there’s no better time than the present to buy this top e-commerce stock.

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In its fiscal 2020 (ended June 30), Peloton Interactive’s (NASDAQ: PTON) total revenue surged by 100%. The company’s first-quarter fiscal 2021 revenue jumped even higher (232% year over year), growing the platform’s total members to 3.6 million individuals.

If you’re wondering whether Peloton has any upside potential left after its meteoric rise in 2020, the answer is a resounding yes. Although at-home workouts may inevitably decline once a substantial portion of the population has been vaccinated and the general public is able to return to a sense of normalcy, it could still be a few years before we can fully greet prepandemic life with open arms.

Peloton’s fitness platform has introduced an innovative and interactive way of working out that users can do from the comfort of their own home any time they please. The novelty and scalability of Peloton’s business model aren’t limited to its pandemic-era growth, and long-term investors should consider this stock when building a winning investment portfolio.

The use of digital payments solutions has soared during the pandemic, but the increasingly cashless society we live in was accelerating these trends long before. PayPal Holdings’ (NASDAQ: PYPL) performance over the past few years to the present is a prime example.

The company reported 18% year-over-year revenue growth in 2018 and 15% revenue growth in 2019. Then, during the first quarter of 2020, PayPal’s revenue grew 12%, followed by record year-over-year revenue increases of 25% the following two quarters. PayPal’s total payment volume also broke records in both the second and third quarters, surging 29% and 38%, respectively, during these periods. Management said in the third-quarter report that it expected the company to acquire 70 million net new active accounts by the close of 2020 and grow its full-year revenue by 20% to 21% from 2019.

PayPal has plenty of growth left to pursue, and investors who buy in now could see substantial returns from this stock over the next five to 10 years.

Streaming services are fast overtaking the traditional movie theater experience, and companies like Roku (NASDAQ: ROKU) that make entertainment-enhancing products from wireless speakers to HD players are riding the coattails of this success. Roku is trading approximately 150% higher than it was just one year ago -- and 624% higher than it was three years ago, shortly after the company went public.

Roku has a history of generating significant revenue growth each year. For example, in 2018 and 2019, the company delivered respective revenue growth of 45% and 52% from the prior years. This growth streak continued unabated in 2020, with Roku reporting 55% year-over-year revenue growth in the first quarter, 42% in the second, and 73% in the third. Management has attributed the company’s ongoing success throughout the pandemic to “robust demand for TV streaming products, strong growth in advertising and the expansion of content distribution partnerships.”

Roku has proven to be a stalwart of the coronavirus stock market, but it’s important to look beyond its near-term success. The company’s popular products and thriving roster of brand partners can also continue to support its growth story for years to come as more viewers rely on digital forms of entertainment than ever before.

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.

Etsy’s (NASDAQ: ETSY) platform continues to attract buyers and sellers from around the world at an exponential rate. Etsy is a fantastic stock to incorporate in a recession-proof portfolio, both for its resilient business model and its yet-untapped growth potential. The e-commerce platform that heavily features specialty and handmade goods was a lauded success before the pandemic hit, and 2020 only further accelerated its growth.

In the third quarter of 2020 alone, active sellers on its platform surged by 42% from the year-ago period, while active sellers were up 55.4%. Etsy’s gross merchandise sales during the first nine months of 2020 grew 101% compared with the same period in 2019, while its revenue surged 102% in this time frame.

ALSO READ: Start 2021 Off Right by Buying These 3 Stocks

Apple (NASDAQ: AAPL) is one of those stocks that you can buy and hold for a lifetime. The company pays a dividend (albeit modest) that yields 0.6%, but it’s Apple’s continued ability to fuel meaningful growth by meeting the needs of its consumers with new and innovative products that really draws investors in.

Apple’s fiscal 2020 ended on Sept. 26. During that 12-month period, the company grew its total net sales 6% compared with fiscal 2019. Apple also reported net sales growth across all of its businesses in fiscal 2020, with the exception being its iPhone segment, which experienced a moderate 3% sales decline. However, Apple’s October launch of its much-awaited iPhone 12, which has been nothing short of a smash success, should add a notable boost to this segment over the next few quarters.

Investors can see just how much of a boost when Apple reports its financial results for the first quarter of fiscal 2021 on Jan. 27.

Microsoft (NASDAQ: MSFT) concluded its fiscal 2020 on June 30. Despite the market’s troubles during the second half of fiscal 2020, Microsoft grew its revenue by 14% and boosted its operating income by 23%.

In the first quarter of fiscal 2021 (ended Sept. 30), Microsoft reported its revenue up 12% from the year-ago period. The company also recorded healthy revenue increases across each of its three primary business segments during the quarter.

Microsoft doesn’t offer investors the same exponential gains some other tech stocks do. However, its consistent growth and durability regardless of sharp shifts in the broader market continue to make this stock a tempting long-term investment.

Cloud-based software company salesforce.com (NYSE: CRM) continues to report mouthwatering growth while adding to its existing liquidity, a combination that’s like catnip to shareholders. During the first three quarters of the company’s fiscal 2021 (the periods ended April 30, July 31, and Oct. 31), it reported year-over-year revenue growth of 30%, 29%, and 20%, respectively.

The latest bit of news that investors are buzzing about is the company’s upcoming acquisition of Slack, which it announced on Dec. 1. The purchase of Slack should add significant value to Salesforce’s current suite of products, thereby boosting its user base and effecting a notable revenue surge to its balance sheet. Factoring in the purchase of Slack, which is set to conclude by the middle of this year, management is forecasting 21% revenue growth in the company’s fiscal 2022.

The mega-cap stock has gained 28% over the past year, all while maintaining its stellar track record of growth in the worst economic recession since the Great Depression. As Salesforce continues to position itself for future success, it’s not hard to imagine that the best is yet to come for this stock.

ALSO READ: Got $1,000? 3 Stocks to Buy to Start 2021 With a Bang

Software-as-a-service (SaaS) stocks have a more recession-proof business model than most to fall back on, and Adobe Systems (NASDAQ: ADBE) is no exception. In its fiscal 2020 ended on Nov. 27, Adobe clocked 15% revenue growth from fiscal 2019. In addition, the company’s digital media and digital experience business revenues grew 20% and 12%, respectively, during this 12-month period.

Shares of Adobe have grown 533% over the past five years, and the stock currently trades approximately 45 times trailing earnings. Adobe isn’t a cheap buy, but then price isn’t always a determinant of a great stock. In reality, it’s Adobe’s longevity and ability to adapt to the changing needs of its customers that continue to make this stock a top growth play for the long-term investor.

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.

Concern regarding another market crash is still rampant among investors. Whether or not another market downfall materializes, it’s important to prepare your portfolio to withstand whatever economic headwinds may arise in the coming months.

As we step into the new year, keep your focus on the long-term horizon and invest only in companies that you fundamentally believe in and are willing to hold not just for a few months but for several years at minimum. There’s always an element of risk to investing. It’s also true that the market is particularly unpredictable right now.

All that being said, the stock market is still bursting with potential for both risk-tolerant and conservative investors who are willing to seize on compelling investment opportunities and wait to enjoy the fruits of their labor.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Adobe Systems, Amazon, Apple, DocuSign, Etsy, Fastly, Green Thumb Industries, Microsoft, PayPal Holdings, Peloton Interactive, Roku, Salesforce.com, Shopify, Slack Technologies, Teladoc Health, and Zoom Video Communications. The Motley Fool recommends Upwork and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2022 $1940 calls on Amazon, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool has a disclosure policy.