10 STOCKS THAT COULD DOUBLE IN 2021
After the tremendous success of 10 STOCKS THAT WILL DOUBLE IN 2020, I have compiled a new list of 10 more stocks that I believe have the potential to double in value over the NEXT 12 months!
With the market being close to an all time high and with recent tech IPO's such as Snowflake trading at an astronomical price-to-sales ratio of 175, it's not going to be easy to find hugely undervalued growth names.
That said, as short sighted and unimaginative investors continue cramming into the obvious growth industries, many opportunities are being overlooked and, by getting into these future industries early, we can grow our investments at an incredible rate.
“People don’t like the idea of thinking long term. Many are desperately seeking short term answers because they have money problems to be solved today.” - Robert Kiyosaki
Without further ado, here are the10 stocks that I believe could double in 2021:
1. GW PHARMA (currently $95)
Unlike other cannabis companies, GW considers itself more of a healthcare business! Rather than relying on the growth of recreational marijuana use, the company is producing breakthrough cannabinoid treatments such as the hugely successful Epidiolex (the only FDA approved cannabinoid on the market).
Right now, GW gets almost 90% of their revenues from the success of Epidiolex in the US. However, their hit drug has recently been approved in Europe and GW is slowly rolling out their operations across the UK, Germany, Italy, Spain & France.
Not only is GW's reach getting larger, but the company will become more diversified as their exciting pipeline of treatments (Sativex, CBDV & Epidiolex for other uses) hit the market.
2. UBER (Currently $33.70)
After recovering strongly from a low of $15 at the start of the pandemic, Uber still has a lot more room to grow. The company is positioned well within some huge growth industries including rides (cars, scooters & bikes), food delivery, freight and self-driving technology.
Competition is going to be tough in all of these areas but that will always be the case in such high growth sectors. The company also recently acquired "Postmates" for $2.65bn which will give them a 30% market share in the US food delivery space.
3. DoYu (Currently $15)
A live streaming and Esports company best described as the Twitch of China! Doyu will be merging with rival HUYA in 2021 and, with the backing of Chinese giant "Tencent", the new company has everything it needs to be the undisputed leader in the Chinese video game streaming industry!
Surprisingly for a company delivering such high growth, Doyu is already profitable and the stock is a lot cheaper on a price to earnings basis than other gaming stocks with Esports exposure including Call of Duty and Overwatch creator Activision Blizzard.
4. TILRAY (Currently $5.50)
Famous for being the first cannabis company to IPO on an American stock exchange (2018), Tilray rose 600% in its first 3 months of being a publicly traded company. Unfortunately for the stock, these kinds of astronomical rises tend to form a bubble which once popped sends the stock crashing.
After 2 years of selling pressure and a 97% decline in its share price, the under-researched and overleveraged speculative investors will have exited the stock by now. Therefore, I think that the share price can start to climb higher over the next 12 months, especially if the Democrats win the US election this year given that they are likely to legalise cannabis on a federal level.
5. BAIDU (Currently $130)
Baidu stock has underperformed for 2 years due to the headwinds facing its core advertising business (Slowing Chinese economy & increased competition for ad spending). Baidu has responded by investing billions into the expansion of its ecosystem beyond their existing Google like Search engine.
The company has hired thousands of developers to build Smart Mini Programs on the Baidu App and they have the best selling smart speaker in China which was valued at $2.9b after a funding round last month. The company also recently debuted the first level 4 autonomous vehicle in China and they continue to lead within the Chinese streaming market through their investments in IQIYI.
6. EASYJET (Currently $470)
The stock is currently trading at around 75% lower than its usual price due to the coronavirus. This is a temporary problem for the travel industry and when it returns (which it will), investors will come back to pick up shares in high dividend paying airlines such as Easyjet!
Easyjet remains a risky investment based on the fact that we don't know exactly when travel will resume however, providing Easyjet can weather the storm, it will 1 day return to all time highs (400% higher than where it trades today).
7. BOEING (Currently $167)
Quite frankly, Boeing got away with murder this year. After multiple years of record shareholder buy backs ($45b) designed to prop up their earnings per share (EPS), the aeroplane manufacturer and defence specialist needed saving by the US government and US tax payers.
Not only has Boeing got a way with one, but the travel ban arguably came at a good time for them. The pause on travel has given Boeing time to sort out its 737 mess and it looks like the model will be approved to fly again soon. I believe we have seen the worst for the travel industry and going forward, Boeing's finances will only get better.
8. ETHEREUM (Currently $350)
The question is "Will the world adopt a decentralised computing platform"? If so, is the answer Ethereum? Decentralisation in a time where people continue to learn the extent of how much the government and media can control what we see and hear seems like an important progression.
Ethereum's first mover advantage gives it a very good chance of being one of the eventual winners in the cryptosphere and given the number of projects (Dapps & DeFi) currently being built on the platform, the rising amount of active addresses and the upgrade to Ethereum 2.0, I'm confident that Ethereum will continue to grow as the technology on which it's built gains wider adoption.
9. MOMO (Currently $14.45)
The Chinese app company began to fall out of favour with investors when their revenue growth came to a halt in 2018. That was until the company found a huge new source of growth when it acquired "Tantan" otherwise known as the "Tinder of China". Unfortunately for Momo investors, the global pandemic has prevented people from meeting up like they used to and the stock has found itself in a downward spiral.
Competition is tough and Momo is losing ground on its competitors but the company remains at the heart of a huge addressable market as millennials in China continue to flock to mobile social platforms. If Momo can innovate like it used to then it could tap back into the hugely lucrative Chinese advertising market.
10. AURORA CANNABIS (Currently $4)
Aurora cannabis was once was the second biggest cannabis stock by market cap. Recently though, the company has been slaughtered after making a string of terrible decisions (overpriced acquisitions, overproduction of cannabis & excessive dilution of stock). The stock now has a market cap of less than $500m and, despite the risk associated with this stock, the reward potential is huge if the company can get its act together.
If Aurora can survive the financial repercussions of these terrible decisions then I believe that the stock offers tremendous upside potential. They have one of the largest marijuana growing capacities in the world and relationships in both the US & Europe. This stock most certainly carries a lot of risk but sentiment is at an all-time low and even the slightest bit of good news could cause Aurora cannabis to at least double in value!
Remember, these aren’t necessarily the ‘best’ 10 stocks to invest in given that the majority of these companies carry significantly more risk than many others out there. However, with this risk comes greater reward and when combined with their history of volatility and a fair valuation, I believe that they can all double or even triple in value in 2021.
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