The Top 10 Best Stocks To Buy In April 2021

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Heading into 2021, stock market predictions ranged from hopeful to pessimistic. Many investors didn’t know what to expect after a year that saw both an election and one of the hottest markets ever. However, having officially turned the page on 2020, it’s safe to say nobody saw things unfolding the way they did last year; there were too many variables at play.

The Coronavirus forced Wall Street to experience one of the largest single-day drops in market history. Within a few months, the market rallied more than anyone could have ever hoped for. The rebound lasted into 2021, but investors are still left wondering what will happen this year. With that in mind, only one thing is certain: volatility has created several unique opportunities.

The best stocks to buy are now a direct result of the pandemic (and the impending recovery). Here’s a brief look at the best stocks to buy in the new marketplace.

10 Of The Best Stocks To Buy Right Now

It needs to be made abundantly clear: There is no such thing as a perfect stock. Stocks for beginners and veterans will all be different. Even today’s best performers aren’t guaranteed tomorrow. The Coronavirus has simultaneously crippled some of the most famous names across several sectors while catapulting new IPOs (initial public offerings) to the forefront of the recovery.

All things considered, now is an interesting time for the stock market. Quality companies have been undervalued while unprofitable, new entrants to Wall Street are extremely overvalued; there’s no making sense of a lot of what’s going on. That said, some stocks have managed to navigate the pandemic better than the rest of their counterparts.

Again, there’s no such thing as a perfect stock. However, these are some of the best looking companies in 2021:

  1. Medifast, Inc. (NYSE: MED)

  2. Alibaba Group Holding Limited (NYSE: BABA)

  3. AbbVie Inc. (NYSE: ABBV)

  4. Facebook, Inc. (NASDAQ: FB)

  5. Pinterest, Inc. (NYSE: PINS)

  6. NVIDIA Corporation (NASDAQ: NVDA)

  7. Ford Motor Company (NYSE: F)

  8. CrowdStrike Holdings, Inc. (NASDAQ: CRWD)

  9. The Trade Desk, Inc. (NASDAQ: TTD)

  10. Redfin Corporation (NASDAQ: RDFN)


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Best stocks to buy now

1. Medifast, Inc.

As one of the best stocks to buy now, Medifast is taking advantage of the health industry at a time when people need it the most. Medifast engages in the production, distribution, and sale of weight/disease management foods and consumables. It is a health and nutrition company that offers its clients access to specific diets. Medifast has done well for itself throughout the pandemic. More and more people prioritize health when activities are severely limited, and Medifast has been capitalizing on the uptrend.

2. Alibaba Group Holding Limited

This company isn’t only of the best stocks to buy in 2021. It has been one of the best stocks to buy for the last decade. Alibaba has grown to become an unrivaled technology company specializing in e-commerce, retail, Internet, and technology in China. Dubbed the Amazon of China, Alibaba has built out a vast network of e-commerce businesses used to supply the country with just about everything. If that wasn’t enough, Alibaba has a growing cloud computing business that has been developing for more than a decade. The unique offerings from Alibaba make it a one-stop-shop for the People’s Republic of China. All things considered, Alibaba was built to thrive in this environment.

3. AbbVie Inc.

AbbVie, maker of Humira—which is the best-selling drug globally—has faced a lot of headwinds in recent history. Specifically, competition threatening to take market share from Humira has forced many analysts to cast doubt on the pharmaceutical giant. Some pundits consider the stock undervalued. Nonetheless, AbbVie has a lot more going for it than its popular arthritis drug. The company has multiple growth assets beyond Humira, which will drive future revenue growth. The recent acquisition of Allergan is also expected to increase revenue for years. On top of its potential, AbbVie also offers a very competitive dividend yield, which long-term investors may consider a great value.

4. Facebook, Inc.

Facebook is the world’s most popular social media platform. As recently as the second quarter of 2020, Facebook had 2.7 billion monthly active users. “During the last reported quarter, the company stated that 3.14 billion people were using at least one of the company’s core products (Facebook, WhatsApp, Instagram, or Messenger) each month,” according to Statista. Facebook grows more valuable with each person that uses it, and active users don’t appear to be slowing down. The recent addition of a marketplace is only expected to increase revenue. All things considered, Facebook is one of the biggest companies in the world, and it’s only going to get bigger. With any luck, Facebook will also be one of the best stocks to buy 10 years from now.

5. Pinterest, Inc.

The best stocks to buy today are the ones capitalizing on new trends, and none may be doing a better job than Pinterest. The social media revolution is only getting stronger, and industry leaders are well-positioned to grow in size for the foreseeable future. Pinterest, an image-sharing social media site that allows users to accumulate links and create virtual pinboards based on their interests, is poised to take advantage of online trends.

In particular, Pinterest could start driving a lot more revenue sooner rather than later because of its algorithmic shopping potential. The company looks like it will create a great deal of ad revenue and become very profitable down the road. According to Statista, “Pinterest had 416 million monthly active users worldwide” in the second quarter of this year. “During that period, the visual bookmarking platform had 96 million MAU in the United States, compared to 321 million international monthly active users.”

6. NVIDIA Corporation

Nvidia specializes in programmable graphics processor technologies. The company revolves around three primary segments: graphics processing units, media, communications processors, and handheld and consumer electronics. When the company was brought public in 1999, it had a market cap of $228.5 million. Today, its market cap is $308.97 billion. The company is growing exponentially, and the advent of technology ensures NVIDIA will see plenty of demand moving forward. NVIDIA is one of the best stocks to buy now, and there’s little doubt it will remain a popular pick years from now.

7. Ford Motor Company

Ford has already established itself as a premier automaker. The F-150 is the best-selling truck globally, and Ford’s name is synonymous with the entire industry. However, investors shouldn’t be excited about its legacy; they should be excited about its future. Already trading at an attractive P/E ratio, Ford looks like an affordable investment in the future of electric vehicles (EV). The recently released Mustang Mach-E GT represents the company’s first serious push into the EV sector and should be just the beginning. In the future, Ford hopes to release an entire fleet of electric vehicles, one that could potentially compete with the likes of Tesla and other world-class automakers. With Ford’s already established footprint, it’s reasonable to assume they will produce and sell enough electric vehicles to make this automaker a giant in the industry once again.

8. CrowdStrike Holdings, Inc.

The advent of technology has shifted almost everything we do online or (more specifically) into the “cloud.” So much of what businesses do today can be traced to the cloud (in one way or another) and edge computing. At the very least, the cloud makes companies a lot more efficient, and more will turn to cloud services sooner rather than later. That said, as our dependence on the cloud grows, so too will our need to keep it secure; that’s where CrowdStrike comes in. CrowdStrike is a leading business in the cybersecurity sector and will be entrusted with keeping our transition to the cloud more secure than ever before. The market cap for cybersecurity businesses will grow along with our dependence on the Internet. No company is better equipped or more prepared to tackle malicious online activity than CrowdStrike.

9. The Trade Desk, Inc.

The Trade Desk may look expensive to new investors, but the latest correction in the NASDAQ has dropped the advertisement company by approximately 45.0% from its all-time high last year. The pullback appears to be more of a broader market correction than anything specifically associated with The Trade Desk. As a result, today’s price looks like a unique opportunity to start a position in a company that has the potential to disrupt the entire advertising industry. “The company operates a self-service cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns in various ad formats and channels, including display, video, audio, in-app, native and social, and on various devices, such as computers, mobile devices, and connected TV,” according to Yahoo Finance. The Trade Desk could become the undisputed online ad space leader, which suggests a huge market cap. In particular, more people are moving away from cable television and heading straight for streaming services, not the least of which The Trade Desk advertises for. As more people cut their cable, The Trade Desk will gain more market cap.

10. Redfin Corporation

Redfin represents the unique convergence between two huge industries with incredible tailwinds: real estate and technology. Technology speaks for itself and has been growing more disruptive for decades, and real estate is in the midst of a boom. Pent-up demand and increased savings thanks to government stimulus checks means more people will be looking to buy a home sooner than later. Additionally, the Fed dropped interest rates to historically low levels to stimulate buying over the course of the pandemic, and the plan worked. More people are looking to buy today, and more people are looking to buy online, which is Redfin’s specialty. Redfin is positioned to capture a large share of homebuyers in the future and should be able to return profits to patient investors. The company’s unique online portal will help people find, buy, and sell homes on the Internet. The application is beneficial in the wake of a pandemic. Several tailwinds should have this stock realize attractive returns for years.

What Are The Best Stocks With The Most Value?

As their name suggests, value investors tend to wait for stocks to drop to a more affordable valuation before they open a position. With that in mind, there may be no greater value on the market than The Boeing Company (NYSE: BA).

As perhaps one of the hardest-hit companies in the world, Boeing saw its 52-week range top out at $378.70, only to crater to $89.00 once the dust settled from the pandemic. In a matter of five weeks, Boeing’s valuation dropped by approximately 76.4%. The drop may be attributed primarily to COVID-19 and a distinct lack of air travel. However, Boeing’s valuation was already being suppressed due to several critical issues surrounding its most valuable asset: the 737 MAX.

The combination of COVID-19 and pre-existing issues surrounding the 737 MAX tanked Boeing’s stock, and for good reason. Not only did many people stop flying throughout 2020, but many also questioned whether or not Boeing’s planes were safe to use. As a result, the stock has yet to rebound completely and sits well below where it was before the pandemic.

However, it is worth noting that Boeing is starting to look more and more like the best value on the S&P 500. If for nothing else, the light can be seen at the end of the tunnel. Significant progress has been made on getting the 737 MAX up and flying again, and more and more people are getting vaccinated. In the event these two indicators play out the way Boeing hopes, buying shares of the aerospace company at today’s prices could represent one of Wall Street’s best values.

What Are The Fastest Growing Stocks?

The market created in the wake of the pandemic has shifted the balance of power. The teach-friendly NASDAQ, in particular, has experienced significant gains since the market bottomed out last year. Thanks—in large part—to more people staying at home (and working from home), technology stocks have excelled where brick and mortar businesses have retracted. While we are at it, utility companies stand to benefit from the remote work trend as well.

Brian Martucci, a professional finance expert at Money Crashers, suggests the pandemic may act as a tailwind for today’s fastest-growing stocks. “As long as the pandemic and its economic repercussions remain front and center, expect defensive plays like utility stocks and technology plays (especially those that enable remote work) to outperform the broader market,” says Martucci.

The new economy has created some obvious winners in the stock market, but two stocks appear to stand out from the competition:

  • Zoom Video Communications, Inc. (NASDAQ: ZM)

  • Amazon, Inc. (NASDAQ: AMZN)

Zoom Video Communications, Inc., otherwise known as Zoom, became Wall Street’s poster child overnight in 2020. The platform quickly became people’s preferred method of communication, while quarantine orders prevent many from going out at all. With more people staying in, Zoom’s revenue increased 355% year-over-year to $663.5 million; that’s one of the largest increases from a single company ever. There is absolutely no doubt COVID-19 amplified Zoom’s results, but this company appears to have only just begun.

One of the other big winners is none other than Amazon. Already one of the world’s largest companies, Amazon inherited a lot more business when “shelter-in-place” orders kept people from leaving their homes. The online retailer quickly became everyone’s go-to source for everything from groceries to household cleaning agents. With e-commerce expected to continue growing, there seems to be no reason to doubt Amazon’s growth prospects moving forward.

What Stocks Have The Most Momentum?

The tech-heavy NASDAQ has pushed higher and higher on the backs of companies that benefit from the pandemic. With more and more people working out of a home office, many tech stocks are building momentum at a time when other industries are reeling from uncertainty. It is safe to say the following stocks all have more momentum during the pandemic than they ever did leading up to it:

  • Fastly, Inc. (NYSE: FSLY)

  • Teladoc Health, Inc. (NYSE: TDOC)

Fastly is an edge-computing company that enables websites to optimize for speed and security. As a result, Fastly has gained a lot of momentum in today’s increasingly digital economy. With more businesses expected to transition online, more are turning to Fastly to make sure they can meet consumer demand.

Teladoc is another beneficiary of today’s “new normal.” As the name suggests, Teladoc is a virtual healthcare platform that enables patients to speak with doctors from the comforts of their own homes. Not surprisingly, Teladoc has gained a lot of momentum with the pandemic and more people being scared to go into hospitals. More importantly, however, the company’s revenue growth has experienced plenty of momentum of its own.

What Are The Best Stocks To Buy And Hold?

This is where things get a little tricky, as the best stocks to buy and hold will vary from investor to investor. To that end, there isn’t a single stock that can be crowned the best long-term investment for every trader; there are too many people with their own individual goals. What one investor may deem a great stock, another may write-off entirely.

Instead of looking for the best stocks to buy and hold, investors must first determine what they want out of their investment. Is it income generated from dividends? Is it unparalleled growth over decades? Both?

Building a long-term portfolio will require investors to diversify between the stocks that meet specific investing needs. As it turns out, there are a number of stocks that can provide both growth and dividends, not the least of which include:

  • Realty Income Corporation (NYSE: O)

  • STAG Industrial, Inc. (NYSE: STAG)

  • American Tower Corporation (REIT) (NYSE: AMT)

  • Brookfield Infrastructure Partners L.P. (NYSE: BIP)

Summary

Determining the best stocks to buy in 2021 isn’t as simple as reading an article and starting a position in a new company five minutes later. In reality, investors must first understand what they want out of their investment portfolio before they even consider investing a dollar in a single stock. There is no way of knowing the best stocks to buy unless you set a goal. How long is the investing window? Do you prefer passive investments or active investments? What is your risk tolerance? All of these questions, and many more just like them, must be answered before anyone can determine the best stocks to buy.


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FortuneBuilders is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”), or any state securities regulatory authority. The information presented is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing provided shall constitute financial, tax, legal, or accounting advice or individually tailored investment advice. This information is for educational purposes only is not meant to be a solicitation or recommendation to buy, sell, or hold any securities mentioned.

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