With the markets closed for the New Year’s Day holiday, it’s time to reflect on the year and even consider some new investment options. When looking at the indexes, stocks rallied in 2020, but some major picks underperformed or were overlooked entirely.
Some of these stocks will be interesting choices for 2021 and could create strong returns for investors. Here are five that are worth considering in the new year.
Walt Disney Co. (NYSE: DIS)
Disney broke an internal record in 2020, with its first annual loss in over 40 years. However, the company is ready to rebound with strong momentum in its streaming service, Disney+, and the prospect of widespread cinema reopenings in 2021. With several Coronavirus vaccines coming to market, its theme park business should also recover over the next year.
Disney is one of the largest entertainment companies in the world and it owns the rights to countless multi-billion dollar franchises including Marvel, Star Wars, and the extensive list of Disney Princess films. Analysts see the stock going as high as $210 in the mid-term future, and the dividend may even be reinstated if earnings improve this year.
General Dynamics Corp. (NYSE: GD)
The stock in General Dynamics Corp. significantly underperformed the market in 2020, but an upside is all but inevitable, according to the Wall Street consensus. This aerospace and defense company develops rockets, missiles, warships, fighters, tanks, submarines, and electronic military technology.
With the passing of a new defense spending bill in the United States, this company is likely to see an upside. It currently has a backlog of more than $81 billion worth of orders, securing its revenue in the years to come. It has a reliable dividend with a yield of 2.97% at today’s price. High-end analyst targets see the stock reaching as high as $194.00 in 2021.
Cisco Systems Inc. (NASDAQ: CSCO)
Technology company Cisco Systems Inc. lost ground in the stock market in 2020, but its high dividend and high rebound potential make it an interesting pick. The dividend yield of 3.24% is reliable, and while it might dilute with stock price growth, it’s still one of the more generous to be found in the tech industry. The most bullish analysts see this stock hitting highs of $60 in 2021, which would be a significant upside over today’s price.
Cisco is an established tech company with a long-term business plan in cloud services and infrastructure. It’s not a company to overlook considering how important networking technology is to all sectors today.
Look for Growth Potential in Stocks This Month
2020 was a year of strong gains but many of the best performers are starting to plateau. The underperformers, like the three stocks listed above, could provide more upside and better returns for investors this year.
You may be interested
Job Hiring is Picking Up as Employers and Consumers Gain ConfidenceLamont J - March 29, 2021
The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…
Fed Could Maintain 0% Interest Rate Until 2024Adam R - March 26, 2021
The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…