6 Momentum Stocks to Buy in 2021
The momentum stocks below might have a long way to run. Their stock charts look good, and the trend is your friend. Buying into a few of these stocks could show some solid gains ahead.
Investors are piling into many of these companies for different reasons. They also come from various industries and provide some diversification. I’ll cover some of the key trends with each trending stock below.
Top Momentum Stocks to Buy Now
- Albemarle (NYSE: ALB)
- Tesla (Nasdaq: TSLA)
- Deere & Company (NYSE: DE)
- Align Technology (Nasdaq: ALGN)
- Expedia Group (Nasdaq: EXPE)
- Norwegian Cruise Line Holdings (NYSE: NCLH)
Traders have bid up these companies’ share prices. There’s a lot of momentum pushing them higher. And it doesn’t appear to be slowing down.
These investing opportunities have great growth potential. There’s lots of short-term pressure, and long-term, overall company growth looks good as well. Let’s dig into the trends and some company highlights.
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Trends Pushing These Momentum Stocks Higher
Albemarle is one of the largest suppliers of lithium for electric vehicle (EV) batteries. It’s based in North Carolina, and it has three major divisions. These comprise lithium, bromine specialties and catalysts. Albemarle is well-positioned to benefit from a huge trend…
More EVs are showing up on our roads. The IEA estimates that total global EV sales topped 3 million in 2020. That’s up a whopping 40% from last year, and the trend isn’t slowing down.
New green energy incentives are on the horizon. Battery technology is improving, and lithium demand is growing. As a result, Albemarle has a lot of momentum going forward. The share price has already run up, but it’s still got a lot of room to expand.
Tesla is helping drive this new EV trend and has a lot of irons in the fire. It’s one of the most recognizable momentum stocks in the world. Elon Musk has grand ambitions, and he’s delivering. Tesla is advancing on many fronts…
Outside of being an electric car company, Tesla focuses on battery tech, solar power, autonomous driving and much more. Many fans – with the help of Robinhood – have helped push Tesla’s stock price higher. If Elon Musk continues to deliver on his grand plans, Tesla’s share price is just getting started.
Tesla comes in at the top of our EV list, but here are five more EV stocks to consider.
Deere & Company designs and builds a wide range of agricultural equipment. This company has a long history dating back to 1837. And to survive, it’s continued to adapt and evolve with the market. Many of its new products focus on automation to assist farmers.
More recently, Deere & Company has been benefiting from higher commodity prices. As crop prices climb, farmers see higher sales. This gives them the ability to buy better farming equipment. And with the ongoing loose U.S. monetary policy, commodity prices will likely continue to climb.
Align Technology’s Invisalign is a growing name in orthodontics. This is a brand of clear aligners to help straighten teeth. The company also manufactures 3D digital scanners for dental practices. This is a unique momentum stock to consider buying.
With the pandemic, many people delayed elective procedures. That included many dentist visits. Now that more people are returning to a somewhat normal life, they’re back to routine doctors visits and socializing. As a result, Align Technology is seeing increased demand for its products.
Expedia Group is starting to see more business as traveling picks up. The pandemic and lockdowns hit this company hard. Its share price tanked toward the start of last year, but it’s climbed since and still has plenty of momentum behind it.
More vacations are starting to pop up on calendars. Many people are trying to make up for lost travel plans. Expedia Group has a large list of brands that will benefit. Some of these brands include Expedia, Hotels.com, Vrbo, Travelocity, Orbitz, CheapTickets and Trivago.
Norwegian Cruise Line is another travel momentum stock with lots of potential. The pandemic hit cruise lines even harder, and their shares haven’t recovered as much. This is a riskier opportunity since the company has had to figure out short-term financing to survive.
It appears we’re well past the eye of the pandemic storm. It’ll still be a bumpy ride for the next few months, but vaccine rollouts are well underway, and more people are feeling safe to cruise again. As a result, bookings have increased and Norwegian Cruise Line should start seeing a solid stream of revenue again.
Top Investing Opportunities
The stock market is always moving, and the trends above have momentum. Buying into a few of these momentum stocks might show some big gains ahead. Although, it’s always important to consider risk relative to reward.
To find even better investing opportunities, consider signing up for Liberty Through Wealth. It’s a free e-letter that’s packed with investing tips and tricks. The expert behind it, Alexander Green, has been following and recommending momentum stocks for more than three decades. He says…
Momentum stocks have been – and will continue to be – the area of the market that offers traders and investors the highest potential returns.
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About Brian Kehm
Brian Kehm double majored in finance and accounting at Iowa State University. After graduating, he went to work for a cryptocurrency company in Beijing. Upon returning to the U.S., he started working with financial publishers and also passed the CFA exams. When Brian isn’t researching and sharing ideas online, you can usually find him rock climbing or exploring the great outdoors.