What are the up-and-coming stocks I should expect?
During these uncertain times, investors are sure to look for the up-and-coming stocks of the year! Get them now, so you benefit once the companies go back to normal! The pandemic caused an economic downturn that crashed various stock prices.
We’ll start by talking more about our recommendations for 2021’s most promising stocks. However, we understand that many of our audience won’t know much about the stock market. That’s why we’ll share some investment tips later.
When stocks go down, most people outside the market think it’s a bad thing. However, most investors see a golden opportunity instead. This may be your time to bag the up-and-coming stocks of the year at low prices!
The up-and-coming stocks of 2021
#1. Coinbase (COIN)
Binance and Coinbase are two of the biggest crypto exchanges in the world. However, the latter got a public listing a few months ago. In other words, you can now buy Coinbase stock.
You’re probably aware of how popular cryptocurrency is nowadays. You might have noticed your friends on social media rave about their first bitcoins. Data proves the trend is growing in the US.
According to MarketWatch, 1 out of 10 Americans invested in cryptocurrencies this year. It is still growing, too. Next year, over 57 million people are likely to purchase cryptos.
The company is responding well to the trend. It recently added Shiba Inu (SHIB) coins to its listings. It’s a crypto that wants to beat a similar coin called Dogecoin (DOGE).
You might be scratching your head as to why we’re talking about crypto. This is about stocks, right? Well, Coinbase lets you benefit from the stock and crypto market!
You may not be interested in crypto, but you can’t deny how popular it is nowadays. By investing in a company that deals with digital assets, you can benefit without holding cryptos.
Not all is well for Coinbase, though. The SEC plans to sue the crypto exchange. Still, it may not be a cause for concern. A similar thing happened to a cryptocurrency called Ripple (XRP).
Perhaps the same can be said for Coinbase. It was sued by the SEC, yet it’s still here. What’s more, it continues to grow even outside of the United States.
One thing is for certain: the crypto trend will continue to grow. At the time of writing, the stock price was $256.42. This could be your chance to benefit from this red hot trend!
#2. Coursera (COUR)
As much as we don’t want to talk about the pandemic, we must. It affected so many aspects of society. You probably changed things in your life because of it.
Still, people have tried to resume their activities through digital methods. Many adults are now working from home. Meanwhile, their kids get online learning.
Specifically, the online learning trend is here to stay. The World Economic Forum reported that many companies are responding to this new development.
Coursera is one of these companies. It’s been offering online courses for years. Yet, the online learning trend has been a boon for it. Coursera’s 2020 revenue went up by 59% year-over-year.
This was nearly double its 2019 revenue growth of 30%. It’s because more people subscribed to its courses. Also, schools work with it to provide online learning to students.
This is why Coursera is planning to improve operations in India. It wants to take advantage of the growing trend. You might want to benefit from this up-and-coming stock as well!
At the time of writing, the price of Coursera stock was $37.28. It may go up even higher because of the growing online learning trend!
Read More: The Best Long-term Dividend Stocks This Year
#3. Fiverr (FVRR)
Many people lost their jobs due to the coronavirus lockdowns. Meanwhile, other companies furloughed workers. They all had time to reflect on their careers while stuck indoors.
This caused an unusual worldwide event called “The Great Resignation.” People realized that they didn’t like their current jobs. As a result, they left in search of better roles.
Many of them found an alternative source of income in the Gig Economy. It’s the current freelancer workforce that grew larger because of the remote work trend.
You’ll find them on online platforms like Fiverr. They perform all sorts of professional work and odd jobs. You may even find someone to write guest posts for you!
Specifically, Fiverr benefited a lot from the trend. It received an 88% sales growth in its latest quarter. At the time of writing, its market cap was around $6.5 billion.
The remote work trend won’t be going away anytime soon. When we wrote this article, the pandemic was still ongoing. This meant numerous companies remained shut down.
This is not a good sign for other economic sectors. Yet, this might be a great signal to buy Fiverr stock. Each was worth $183.49 at the time of writing.
#4. Roku (ROKU)
You’ll find one of the best up-and-coming stocks of the year from an unlikely source: connected TV! The Smart TV market is growing right now. And it’s because of the lockdowns.
Most people are just stuck indoors. Of course, they’ll find ways to pass the time. One of the most popular go-to choices is online streaming services.
More people are watching Netflix nowadays. People may now watch with their friends from far away with Teleparty. We have other services like YouTube TV and Sling TV.
It can be a hassle to keep track of all their separate accounts, though. That’s why connected TVs like Roku TV became popular. It allows people to keep the streams in one place!
Now, the United States and South Korea are racing to dominate this market. Specifically, Roku has been performing well due to these trends.
It recently got 1.5 million more users. Its total net revenue went up 81% year-over-year to $645 million. The connected TV trend is still growing, though!
This means Roku might be one of the up-and-coming stocks you need this year. At the time of writing, the stock price was $337.85.
Why should I look for the up-and-coming stocks?
If you’re not a stock investor, you’re probably never heard of the companies we mentioned. You may even think we should have listed more popular companies like Apple.
Large companies often don’t leave room to grow. They’ve been operating for a long time. This gave them time to increase profits and enter new industries.
Unfortunately, it can’t sustain this performance forever. The company will run out of ways to grow. It might have entered all the fields that it could.
This means their stock prices won’t go up that much. Imagine if you bought at $300.00 per share. If it only reaches $305.00 after several years, you only earned five dollars!
On the other hand, a young company has plenty of room to grow. Its products are probably catching a popular trend. It has numerous industries it could enter.
Let’s use the Apple stock price on September 13, 2008 as an example. It closed at $5.03. At the time of writing, it was $154.07. If you bought on that date, you might have earned $140 by now!
How do I find the up-and-coming stocks right now?
We just talked about our top stock picks for the year. Though, you should look for more yourself. How should you go about it, though? Should you look at the Wall Street Journal for answers?
Should you just look to the Motley Fool and other well-known sites for answers? How about following what famous investor Warren Buffet is doing with Berkshire Hathaway?
They could all give you clues for your investment strategy. Yet, you shouldn’t look to them for all the answers. Here’s how you can invest in the up and coming stocks properly:
- Set goals – Why do you want to invest? Make sure you’re clear about what you expect from your assets. It will change the types you’ll need for your portfolio. For example, stocks might be too slow if you want quick profits.
- Study assets – Find the assets that match your goals. Then, learn how they work. This will help you figure out your potential portfolio picks. More importantly, you should never invest in anything you don’t understand.
- Check the companies – Buying stocks means owning part of a company. That’s why you should know how it’s performing. Check its track record and business model.
- Read the market – Be aware of what’s going on in the global economy. Understanding how everything is connected will help you narrow down the stocks to buy. Take our article about Air Canada stock, for example. We said it might not be a good stock pick because flights are still severely limited by COVID-19.
- Set your budget – Only use the money you can afford to lose. Spend only on the most promising stocks.
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You could learn more about the other up-and-coming stocks here at Inquirer USA. For example, here’s our article regarding the best growth stocks.
Why stick to just one type of asset, though? Luckily, we also have articles about these other assets! You have bonds, real estate, mutual funds, and even cryptocurrency.
Note that this article is meant for educational purposes. We advise you to research potential investments by yourself. As we said, don’t use the money you can’t afford to lose.
Learn more about the up-and-coming stocks of the year
Can you get rich from stocks?
Yes, you can become rich from stocks. That’s how Warren Buffett made his fortune and became the “Oracle of Omaha” we know today! However, you should not rely on just one type of asset. Doing this will help you reduce risk and maximize profit from investing.
What stocks are going to rise soon?
Here are the stocks to watch for 2021:
- Coinbase (COIN)
- Coursera (COUR)
- Fiverr (FVRR)
- Roku (ROKU)
You may find better options that aren’t on our list. After all, the market may have shifted dramatically by the time you’re reading this. Also, we can’t list all the great growth and small-cap stocks out there. You must find them yourself.
Do you owe money if a stock goes down?
This depends on how you got the stock in the first place. If you bought it with your hard-earned money, you’d only miss out on earnings. On the other hand, it’s different if you borrowed money to get the stock. This is why we keep reminding readers only to use the money they can afford to lose.