3 Stocks That Could Double in Value in 2021

Investors will be relieved that the tough year of 2020 is coming to an end. 2021 is a mere few weeks away and brings with it the hope of a steady economic recovery. The markets have been volatile up until the very last month of 2020, even if indices are trading high.

With vaccine distribution just about to get started, there is certainly hope that the worst is behind us. There will likely be a few more weeks of several recorded cases. But it can safely be said that on a global level, the worst is behind us. Consequently, there are several stocks that have the potential to grow significantly next year.

3 Stocks to Consider as 2021 Approaches

We’ve listed three stocks here that might have growth potential in 2021, even if full economic recovery will take a few quarters. Investors have the opportunity to enter the market now and possibly earn handsome returns.

1. Magnite, Inc. (NASDAQ:MGNI)

Magnite is a digital advertising company that was formed in 2020 via a merger between Rubicon Project and Telaria. Originally Rubicon Project, the company went public in April 2014. It acquired several companies between its founding and IPO.

The company advertises itself as an atypical ad tech company, aiming to be as transparent as possible. With a market cap of $2.1 billion, Magnite has several institutional investors backing it. Roughly three-quarters of backers are professional investors.

• In its Q3 2020 report, Magnite revenue was $61.0 million for Q3 2020, up 62% from Q3 2019.
• Net loss for Q3 2020 was $10.5 million, or $0.10 per share.
• Revenue for Q4 2020 is expected to be between $72 million to $75 million.

2. Freshpet, Inc. (NASDAQ:FRPT)

The pet care industry is growing at a tremendous rate, which looks like it will continue for the foreseeable future. Companies like FreshPet will benefit significantly from this trend. The company manufactures fresh, refrigerated food and treats for cats and dogs.

FreshPet currently sells its products across the United States, Canada, United Kingdom, and the Netherlands. The products feature in some of the biggest retailers, including Walmart, Target, and Whole Foods. It is also known for its viral and engaging marketing approach.

• In Q3 2020, reporting net sales of $84.2 million, an increase of 29% year-over-year.
• It also reported an increase in net sales in Q2 2020, growing 33.2%.
• The company expects to exceed net sales of $320.0 million, a 30% increase from 2019.

3. Sea Limited (NASDAQ:SE)

Sea Limited is a consumer internet company that provides digital entertainment, commerce, and financial services. It originally started as a game development company, a space which it continues to function in. Garena, its game business, is extremely popular in Asia.

The company has done well in the past years, posting good revenue growth with every passing year. This is unsurprising, given the growth of the video games industry. Its financial services business is its fastest-growing business.

• The company’s YTD performance saw it more than quadruple in 2020.
• It expects to raise at least $2.57 billion in a secondary stock offering.
• Revenue doubled in Q3 2020 to $1.2 billion.
• Sea Limited was awarded a full banking license in Singapore.

Conclusion

2021 is sizing up to be a pivotal year for the markets. With several emerging industries blossoming, investors will rethink their portfolio, considering techniques like impact investing. A keen-eyed investor will spot new trends and high-potential stocks with good research and careful planning.

What do you think of the stocks mentioned here? Do you have any recommendations of your own? Let us know what you think in the comments below.

Disclosure: Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.