Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
The final quarter of 2020 is bringing to end an uncertain year. Some industries have survived mostly unscathed, and others have done tremendously well. However, most are in a middle ground, with uncertainty ahead for them as a new wave of virus cases emerges.
3 Stocks With Good Growth Potential in 2021
The first two quarters of 2021 will be extremely important in determining the overall recovery of the market. Most likely, individual industries will pick up slowly, with those more affected by lockdowns taking more time to recover. This is an inevitability.
Prudent investors will be able to take advantage of the fact that we are heading into a recovery. Even if this is a halting recovery, it is an improvement nonetheless. And there is no doubt that there will be some stocks that do particularly well as 2020 comes to an end. With that in mind, we have laid out three stocks that look good for growth in 2021.
Barrick Gold is a mining company that produces and sells gold and copper. Headquartered in Canada, the company operates in 13 countries through 16 mining sites. Until 2019, it was the world’s largest gold mining company. It expects to produce between 4.6 to 5 million ounces of gold and between 440 to 500 million pounds of copper in 2020
While the coronavirus has impacted mining production elsewhere, Barrick Gold has said that its production is unaffected. The company’s preliminary production numbers in both Q2 and Q3 2020 give investors reason to be optimistic. It is likely then that Q4 and beyond will be even better.
Third-quarter preliminary gold production was marginally higher than the second quarter of 2020.
The company is on track to achieve full-year production guidance.
Preliminary Copper production sales were lower than the previous quarter.
A 10.8% drop in Q3 gold production is expected as their mine in Papua New Guinea remained shut.
Zynga is an American game development company whose primary focus is on mobile and social networking games. Most well known for the Farmville games, Zynga has also made games such as Zynga Poker and Words with Friends 2.
Like many entertainment companies, Zynga has benefited from the stay at home orders imposed by the pandemic. Online gaming, like streaming, has soared in popularity since the start of the global lockdowns. With gaming being one of the most valuable entertainment industries at the moment, Zynga might stand as one of the top growth stocks you can find in October 2020.
In June 2020, Zynga announced that it had purchased Turkish developer Peak for $1.8 billion.
A revenue of $2.2 billion is projected for the entire year.
Dollar Tree is a US-based chain of discount stores that sell items for $1 or less. The company is exceptionally well-known in the gaming sphere and is a Fortune 500 company. It operates over 15,000 stores across 48 US states, as well as operating in Canada. Products include food, snacks, toys, books, and more.
The company will hire 25,000 employees for the holiday season, indicating that the its finances are doing well. Combined with the revenue-generating holiday season, quarterly reports also suggest that the company is in a good position.
The company reported a net income of $261.5 million in Q2 2020 at $1.1 per share.
Total same-store sales rose by 7.2% during the quarter.
The company expects to open 500 new stores by the end of the year.
The key takeaway is that there is an opportunity to invest now and possibly make in 2021. More than the specific stocks, think about how you can position yourself for the upcoming recovery. These stocks are only starting points, but there will be others worth examining with technical analysis as well.
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What do you think of the stocks listed here? Do you have any stellar stocks of your own to recommend? Let us know 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.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.