1) American Marijuana:
If you haven’t already noticed, marijuana stocks in North America have been red hot lately. When a choice is possible, United States pot stocks have far more market share available without many obstacles.
Federal legalization of cannabis is seriously unlikely in the next year or two, but the legalizations at the state levels are racking up as more time goes by. Given how the federal government is indicating a hands-off attitude towards regulation at the state level, not much is getting in the way of American cannabis stocks.
For instance, consider Green Thumb Industries. OTC:GTBIF is likely to be quite profitable for the entire year of 2021. This company has more than four dozen dispensaries already in operation, and it also has the right licenses to open nearly 100 more in more than 10 states. Green Thumb has decided to emphasize Nevada, a state likely to lead the nation in per-capital cannabis spending by 2025. They also focus greatly on Illinois, which greenlighted adult-usage sales at the start of 2020, opening up a possibly billion-dollar local market.
We learned quite a few things in 2020. One of them was that cybersecurity is not optional anymore. In fact, this service has become a basic need for companies and institutions of all sizes now and in the future. The planet is becoming increasingly digital, so the responsibility of protecting data, consumer and enterprise alike, is falling on the shoulders of cybersecurity providers.
Grand View Research forecasts 10-percent annual growth in the global cybersecurity market each year for the next five years, at least. By 2027, sales should be nearly a third of a trillion dollars. This isn’t going to be 2021 fastest-growing sector, and it might not even rate that high over the next few years. However, of all the high-growth industries, it has a very safe floor.
CrowdStrike Holdings, or NASDAQ:CRWD, is one name that intrigues me. Their Falcon platform is cloud-native, and it’s cheaper than security solutions that are based on-premises. It’s also responsible for the monitoring of more than 3 trillion different weekly events. The company not long ago announced that nearly two-thirds of its clients have at least four cloud module subscriptions, twice the numbers of three years ago. Any pullback on this is going to be a serious buying opportunity.
3) Precision/Personalized Medicine:
Even if numerous vaccines are successful in halting the global pandemic this year, it’s obvious that healthcare services intended to improve personalized treatment and convenience will be a hot commodity for some time.
Even though Wall Street estimates vary, many analysts expect the market for global precision medicine to grow between 10 and 12 percent each year for the next half-decade, if not longer. Once more, this isn’t the sector growing faster than everyone, but the floor is very safe.
If you want to see the power and sustainability in precision medicine, then look at Teladoc Health, operating as TDOC on the NYSE. This telemedicine company has witness triple growth in the virtual visits they handle throughout the pandemic. Their sales from 2013 and 2019 grew at a 74 percent annual compound rate. Since they used a cash and stock arrangement to acquire Livongo Health, an applied health signals company, they can now remotely monitor chronically ill patients, cross-promote products easily, and connect patients and physicians virtually.
4) Cloud Infrastructure:
Investing in stocks of cloud infrastructure companies is a great way to make $1,000 work for you in the year of 2021. I suspect we’ll see all sorts of cloud businesses see substantial money inflow this year and next. Given the pandemic, companies all over are increasingly aware of how crucial an online presence is, as well as the importance of remote work and data sharing. Anything involving the cloud’s building blocks will be hot properties for at least the next year.
IDC released a 2020 forecast for the next five years regarding infrastructure growth and the public service cloud, suggesting a 22.3-percent CAGR until 2023. In particular, stocks for infrastructure-as-a-service look to be the fastest-growth trend inside the cloud, with a 32-percent CAGR.
Even though Amazon clearly leads the market for cloud infrastructure services, you might get better growth potential from Alphabet. Alphabet’s Google Cloud outpaces Amazon’s Web Services in terms of growth, by far. Google Cloud’s margins are also better for Alphabet when compared to ad-based revenue it enjoys. In time, these oversized margins are going to fuel considerably expanded operational cash flow.
5) Gold Miners:
Gold stocks might not be something you consider unstoppable, but they might make Wall Street tremble in 2021. Physical gold has a chance to really shine right now, thanks to the Fed using a limitless quantitative easing program to prop up financial markets and nearly $17 trillion in planetwide investment-grade level debt carrying a negative yield.
Meanwhile, we’ve seen gold miners use the last half-decade to minimize their net debt through selling off non core assets in lieu of favoring mines giving them high-yield ore. As physical gold prices spike, gold stocks are going through their greatest financial circumstances they’ve seen for a long while.
For more information on stocks in 2021 read this Fund Manager January commentary to help you to make the most of your investments.