2020 has been one of the most volatile years on record. All thanks to the novel coronavirus, fears of the U.S. elections, wildfires, earthquakes, riots in the streets, economic disarray, a wild hurricane season, lockdowns … the list goes on.
However, markets have perked back up in these final weeks of the year.
All on news we may be nearing a desperately needed vaccine.
“The strong results from the Pfizer vaccine were better than most expected and means we could be opening back up sooner than expected,” said Ryan Detrick, chief market strategist at LPL Financial, as quoted by CNBC. “Coupled with an economy that continues to surprise to the upside and the stock market is now pricing in the prospects of a much better economy in ’21.”
With hopes 2021 will be far less volatile, here are some of the top stocks for the New Year.
Companies to Invest In for 2021 – NIO (NIO)
Nothing seems to slow this electric vehicle stock. Months ago, NIO was on death’s door as a going concern. Now, it’s flying higher on exceptional demand and delivery numbers. In fact, since bottoming out at $2.11 in March, NIO stock is now up above $48 and could see $50, near-term.
As I noted in October, “Things have changed for the better for the EV company. With solid monthly growth and earnings, coupled with higher demand for electric vehicles, I believe the NIO stock could bolt. I also expect to see further upside once its next delivery numbers are released.”
NIO delivered 5,055 vehicles in October, a new monthly record representing a strong 100.1% year-on-year growth. That followed September’s 4,708 vehicles delivered — a growth rate of just over 133% YoY.
Expecting more record-breaking deliveries, I believe NIO could hit $50.
Over the last few days, shares of Pfizer jumped from an October low of $34.25 to a recent high of $41.99. From here, PFE stock could easily see higher highs on news its vaccine is 90% effective.
As noted by Pfizer Chairman and CEO Albert Bourla:
“It is a great day for science. It is a great day for humanity when you realize your vaccine has 90% effectiveness. That’s overwhelming,” Bourla said on CNBC. “You understand that the hopes of billions of people and millions of businesses and hundreds of governments that were felt on our shoulders, now… I think we can see light at the end of the tunnel.”
At the same time, consider BioNTech (NASDAQ:BNTX). After all, the two are working on the same vaccine found to be 90% effective. BTNX just hit a high of $115 and could see $120 very soon on the vaccine excitement. Thursday’s 7.1% retreat could signal a buy opportunity on this dip.
With the pandemic keeping ships at port, Carnival investors jumped ship – and fast.
In fact, CCL stock is down from a February high of $43.60 to below $15, as of now. (The March low was under $8.50.) After all, companies weren’t allowed to sail, which was putting a massive debt in earnings, while raising the fear of bankruptcy. However, with Pfizer’s news of a vaccine, and pent-up demand from those stuck at home for far too long, cruise lines, like CCL could see more upside.
“Travel executives are hopeful that an effective vaccine will speed up the timeline around when travelers will feel comfortable getting back out and about again,” reported CNBC contributor Seema Mody.
A Biden administration is likely a positive for solar stocks, pushing alternative energy names like SunPower higher. For one, under a new regime, the U.S. is likely to rejoin the Paris Climate accord. As well, he has laid out a $2 trillion clean energy infrastructure plan, with hopes for net zero emissions by 2050.
In addition, he has said he wants to “upgrade four million buildings and two million homes over four years to meet new energy efficiency standards,” as noted by The Conversation. Over the last few months, SPWR stock has run from a June low of $4.69 to $19.37. Assuming the former vice president is sworn in as the 46th president on Jan. 20., I wouldn’t be shocked to see it closer to $30.
The last time I weighed in on the Albermarle, I said it could easily challenge a recent high of $101 shortly. That was on Oct. 7, as the lithium name traded at $96. Today, it’s up to $118.64 and ALB stock could head higher on the lithium boom.
Remember, as reported by Barron’s Al Root:
“There’s only one thing standing between Tesla and world domination, the global supply of lithium. And that’s good news for lithium producers. Right now, the world mines roughly 400,000 tons of lithium a year, enough to power 2 million to 3 million electric vehicles, though only a third of that goes to EVs right now. That number will have to increase perhaps as much as tenfold to meet Musk’s goal, and that doesn’t take into account other automakers.”
The company is moving forward as a critical partner on two U.S. Department of Energy lithium research projects. Albemarle will work with two of the agency’s labs on the company’s approved projects. The first, in collaboration with Argonne National Laboratory, is “Advanced Brine Processing to Enable U.S. Lithium Independence.”
The second project, in partnership with Pacific Northwest National Laboratory, is “Scaling Up of High-Performance Single Crystalline Ni-rich Cathode Materials with Advanced Lithium Salts.”
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.