The year 2020 was a year that investors will remember because it led the market in strong returns despite job losses and global pain. There was a flux between winners and losers. For example, technology stocks in 2020 rallied very well in the field of communication and information technology. However, the financial industry and energy stocks plummeted.
Naturally, investors wish to remain cautious yet optimistic in trading in 2021. The stock price targets factors in investor’s buy and sell plans. Respectively, investors can increase their rates of return by buying and selling stocks when traded below and above their price targets.
An investor’s watch target on the market should be to determine their price targets in the type of purchasing and selling recommendations. What are investors and sector portfolio managers forecasting? Let’s look at seven stock sectors that are bullish in 2021 with higher gains:
Renewable and Alternative Energy
In 2021, renewable and alternative energy stocks are accelerating. Even though the demand for electricity fell in 2002, renewable energy this year is gaining. The U.S. is planning to invest around $2 trillion in clean energy which propels market gains in energy stocks.
Alternative and renewable energy is not only an eco-friendly way of life, but by investing in this stock it will help to diversify investor’s holdings. It is more stable than other types of energy resources like solar. Actually, wind energy is a fast-growing source around the world. Renewable energy is more affordable, making it a good investment for buyers and investors.
With COVID affecting the world, it is no wonder that pharmaceutical investments are expected to grow. Pharma popularity is gaining market traction heading into the new few quarters. Both large-cap and mid-cap pharma stocks are gaining momentum due to the amazing breakthroughs in combating COVID and other viruses.
The world is highly invested in this digital industry. Therefore, national and international markets are seeing favorable stock trades in this industry. Pushing virtual reality stronger are its many uses, i.e., its use in the entertainment industry, transportation, healthcare, government, education, business, and so much more. Because the pandemic kept everyone home, virtual reality or digital platforms were used daily. Now with the lifting of pandemic restrictions, there is no reason that their popularity will change.
As we have seen in the news recently, the need for cybersecurity is a technology industry that is working overtime to keep businesses safe and secure. Cybersecurity technology is evolving especially in its partnership with new artificial intelligence solutions. The cybersecurity industry is expected to increase from $160+ billion in 2021 to over $360 billion in seven years.
Artificial Intelligence (AI)
AI in industries like self-driving cars, virtual medical care, gaming, the steel industry, the sciences, as well as the market is the driving force behind the increase in AI market stocks. Artificial intelligence is growing exponentially. It is expected to reach near $100 billion in 2023 with an annual growth rate of nearly 30% from 2019. Picking stocks from this industry are worth considering.
Biotechnology stocks are seeing large gains this year alone. National and world demands are abounding for PPEs, environmental products, medical devices, and biodegradable products. The biotech industries are growing and investing in them is an optimistic gain for 2021 and beyond.
Real Estate Investment Trusts (REIT)
Mortgage interest rates are low opening the door to make the real estate industry an appealing investment. REIT allows investors to buy into a trust with other investors rather than having to buy property. REITs deliver higher dividend yields which make it one of the better investment options in 2021.
Financial sector stocks are outperforming the market in 2021. They are yielding a return of over 70% and their profits are returned to shareholders in buybacks and dividends. The financial sector stocks include varying companies that involve commercial banking, insurance, asset management, credit cards, retail, and others.
The communication sector involves IT and telecommunication companies. This sector is driving huge economic expansions and innovations even during the pandemic. This type of tech will continue to grow for years. Investors in 2021 who are considering buying shares in top communication companies will see a strong return, especially if you continue to hold onto them.