21 stocks to buy for 2021

The stock market always has a few surprises in store, as any investor in 2020 would attest. But by and large, the biggest factor experts are considering as they identify the best stocks to buy for 2021 is the same factor that dominated 2020:

COVID-19.

2020’s top stocks typically were tied to companies that benefited from new and accelerated trends resulting from COVID-related lockdowns. However, many of the best stocks for 2021 are largely expected to benefit from a “return to normalcy” and a healing economy.

Continued progress in the response to COVID-19, including further stimulus, will be the key to sustaining the recovery. An earnings rebound in 2020 and strong earnings growth in 2021 may allow stocks to grow into somewhat elevated valuations. Cost efficiencies achieved during the pandemic may persist.

Exactly when during 2021 you can expect to see these gains is another story altogether. That hinges on issues such as when and if the government will produce a stimulus bill, and how long it will take vaccines to be distributed. COVID-19-impacted service industries may be the last to bounce back.

Here, then, are the 21 best stocks to buy for 2021. A few of these stocks have been bulldozers for a long time and simply look primed to continue their success for yet another year. Many more of these stocks are clear “recovery” plays that took it on the chin for much of 2020, but are largely expected to turn things around in 2021.

1. Alibaba Group
2. Castle Biosciences
3. Hilton Worldwide Holdings
4. IEC Electronics
5. PayPal Holdings
6. Pinterest
7. Twilio
8. Upland Software
9. Wayfair
10. Microsoft
11. Stryker
12. Tennant
13. United Parcel Service
14. Bank of America
15. Intel
16. JPMorgan Chase
17. LyondellBasell
18. Dow
19. Enterprise Products Partners LP
20. Ares Capital Corporation
21. Oneok