Amidst the challenges, there were big value creation opportunities in fiscal year 2020. Tesla (NASDAQ:TSLA) skyrocketed by 696% during the year. Similarly, Zoom Video (NASDAQ:ZM) has surged by 405%. The list of stocks generating multi-fold returns is a big one, and the broad markets might seem expensive. However, using the bottom-up approach, investors can still find stocks that can deliver huge returns in 2021.

With all of that in mind, I will focus on four stocks that can deliver multi-fold returns over the next 12 months. I believe that these stocks are equally attractive beyond the given investment horizon.

So, let’s discuss these stocks that are set for huge returns in 2021:

• Workhorse Group (NASDAQ:WKHS)
• dMY Technology Group (NYSE:DMYT)
• Laird Superfood (NYSEAMERICAN:LSF)
• Li Auto (NASDAQ:LI)

Now, let’s dive in and take a closer look at each one.

Stocks Set for Huge Returns in 2021: Workhorse Group (WKHS)

I believe that WKHS stock is among the top speculative bets for the coming year. And if the company can secure a long pending deal, WKHS stock is set for huge returns in 2021.

As an overview, Workhorse Group has positioned itself as a provider of electric vehicles for last-mile delivery. The company already has technology validation from the likes of FedEx Corporation (NYSE:FDX) and United Parcel Service (NYSE:UPS).

As of late, Workhorse Group has been expecting a major contract from the U.S. Postal Service (USPS). The company believes that the contract can be worth $6.3 billion. However, USPS has been delaying the contract award — which has kept WKHS stock sideways after an initial surge.

That said, I believe that some exposure to the stock makes sense at current levels. And if Workhorse can secure the USPS contract, returns can be multi-fold.

In addition, the USPS contract is not the only contract in sight. As the adoption of commercial electric vehicles increases, the company is positioned for big orders. For example, Workhorse received an order for 500 trucks from Pritchard Companies in November 2020. More recently, the company received a purchase order for more than 6,000 vehicles from Pride Group Enterprises on Monday.

Overall, WKHS stock looks positioned for huge returns in 2021. And the stock is also worth holding for the long-term once order inflow gains traction.

dMY Technology Group (DMYT)

SPAC listings have been a major investment theme in FY2020. That said, DMYT stock is another SPAC that has been in limelight. In just the last two months, DMYT stock has surged by 103%. However, I believe that the stock is set for huge returns in 2021.

Back in July 2020, dMY Technology Group announced a business combination with Rush Street Interactive (NYSE:RSI). The latter is in the business of online gaming, which is just starting to gain traction in the United States.

Then, Rush Street Interactive subsequently posted strong results for the third quarter of 2020. In addition, the company has provided a strong guidance for FY2021. This is the key reason for DMYT stock surging higher in the recent past.

Overall, Rush Street is already on a high growth trajectory. Last year, the company reported revenue of $64 million. For the current year, revenue is expected to surge to $225 million. Furthermore, the company has guided for revenue of $320 million for FY2021.

Sustained growth coupled with guidance for positive cash flows is the key reason to believe that DMYT stock is set for huge returns in 2021. And as more states legalize online casinos, the guidance can be potentially revised on the upside.

Stocks Set for Huge Returns in 2021: Laird Superfood (LSF)

LSF stock was listed in September 2020 at $22 per share for its initial public offering (IPO). However, the stock has trended higher to above $45 since that time. That said, I believe LSF stock is another name that’s positioned for huge returns in 2021.

Collectively, Laird Superfood offers plant-based superfood products. A key reason to like the stock is the fact that the company is in an early growth stage. For Q3 2020, the company’s net sales increased by 118% year-over-year to $7.6 million.

In the same quarter, the company rolled-out its liquid creamer through the United States. But, the impact is likely to be seen in the coming quarters. Thus, I would not be surprised if top-line growth remains well above 50% in the coming quarters.

It’s also worth noting that the company started with three stock-keeping units (SKUs) in FY2015. For the current year, the company is expected to have 34 SKUs. This includes powered creamers, liquid creamers, hydrate and beverage enhancing supplements, among others. So, as the product range increases, top-line growth is likely to remain robust.

The novel coronavirus pandemic has also accelerated the adoption of healthier food alternatives. And with the company offering keto, plant-based and gluten free products, the demand is likely to be strong as product visibility increases.

Li Auto (LI)

Electric vehicles (EVs) are likely to be an attractive investment theme not just for the next year, but for the next decade. For FY2020, global EV sales is likely at $1.7 million. That said, sales are expected to increase to 8.5 million by FY2025 and 116 million by FY2030. Also, China is expected to maintain leadership position in EV adoption.

This factor makes LI stock attractive with the company already on a robust growth trajectory. LI stock touched a high of $47.70 in November 2020. However, the stock has witnessed correction all the way down to $31. I believe that these are attractive levels to accumulate the stock.

Additionally, the company’s vehicle deliveries have witnessed sustained growth in FY2020. For Q3 2020, the company reported 28.9% top-line growth quarter-over-quarter. I also like the fact that the company is already free cash flow positive. Li Auto did have a follow-on public offering, which is the key reason for the stock correction. However, I don’t see further equity dilution in the coming year with FCF increasing.

The company has also inked a strategic co-operation with Nvidia (NASDAQ:NVDA) for a premium smart SUV to be launched in 2022. Therefore, the pipeline is exciting and vehicle delivery growth is likely to sustain. And thus, I will not be surprised if LI stock doubles from current levels in FY2021.

On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.