As every investor in 2020 will testify, the share market is still full of twists and turns. However, the most crucial factor analysts consider when determining the best shares to invest-in in 2021 is the same thing that was influenced in 2020: COVID-19, a virus that infects people.
According to fintech research, firms that gained from emerging and rapid trends resulting from COVID-related closings were usually among the top stocks in 2020. Conversely, a "return to normal life" and a recovering economy are projected to help many of the best stocks for 2021.
- CVS for Pets
Pet adoption is on the rise which is excellent news for companies like CVS Group, including some UK's most extensive veterinary services.
During the global pandemic, demand for pets grew. Around July 2019 and July 2020, the RSPCA's dog fostering pages saw a 600 percent rise in traffic, while cats' price increased by 40%. Pets are for life, as the saying goes.
The company operates 480 veterinarian services in the United Kingdom, Ireland, and the Netherlands, including three medical labs and seven pet crematoria. Animed, a rapidly expanding online veterinary pharmacy, is helping them out.
Despite all of CVS's advantages, it has one big flaw. The business depends on a steady supply of highly trained experts, which hasn't always been the case. In the past, the company has struggled to keep employees, and resulting wage rises have harmed revenue growth and the stock price. Although CVS has taken steps to minimize the danger, it remains a problem for the entire industry.
The PE ratio of 25.3 times earnings is high, but we believe CVS has a lot to give in the long run. Long-term investment opportunities can benefit from short-term lockdown crosswinds.
Ibstock, a brick, and concrete component maker hasn't had the year they'd hoped for in 2020. House Building and development in the UK came to a halt because of lockdowns, with revenue falling 36% during the first half.
Amid the crisis, Ibstock took measures to cut costs, slashing £20 million from its cost base for 2021 through job cuts and some underperforming plants' closure. Sales volumes in September and October were 90 percent higher than the same months last year, showing a strong recovery and recouping profits from a reduced cost base.
Over time, we believe Ibstock will have more to sell. It should profit, in particular from the government's efforts to invest millions of dollars in infrastructure and services.
House prices will fall next year as a result of the threat of high levels of unemployment. Ibstock, on the other hand, is more vulnerable to housing volumes than prices as a supplier to the market. Although the government may allow house prices to fall, we believe that construction levels should continue to rise.
Facebook is primarily an advertisement platform. With its advertising contributing to 98.5 percent of its total revenue in 2019, it is among the top ways for businesses to promote themselves.
As the world grappled with the coronavirus's economic fallout, it's not shocking that global ad spending has decreased. Many analysts predict that advertisement expenditure will drop by at least 7.4% in 2021.
As per fintech research, Facebook's statistics say that sales increased by 10% during the peak lockdown time and have continued to rise ever since.
Facebook has most of the resources necessary to capitalize on the increase. Still, its profit has remained stable, and we believe that as advertisement spend increases, digital channels capture a larger share of overall spend. This paves the way for a successful 2021.
Historically, US tech behemoths have sold at exorbitant rates. Facebook's P/e ratio of 26.9, on the other hand, is below its long-term average and seems to be fair considering the company's growth potential.
If you take out the $55.6 billion in cash, perhaps the company's true rating is even lower. Even with the rising financial risk, we believe Facebook is significant to consider in 2021.
These projections are not a powerful predictor of future performances. Gains are not assured and are subject to change. Previous achievements are no guarantee of future results, and investments fluctuate in value so that investors can lose money.
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