Top 4 Up-and-Coming Stocks to Watch
Over the past few months, Trade of the Day’s Head Trade Tactician, Bryan Bottarelli has identified numerous up-and-coming stocks to watch. As many economies are still in recovery from the COVID-19 pandemic, there are quite a few sectors that have yet to bounce back.
A few of these stocks fall under this designation. Bryan calls them “slingshot” stocks. These are companies that will not only retest their pre-COVID-19 highs, but also slingshot ABOVE those levels in the weeks and months ahead. And the last stock on our list is a sweet nostalgia pick that is flying under Wall Street’s radar.
Read on to check out Bryan’s top four up-and-coming stocks to watch this year.
What To Look for In Up-and-Coming Stocks
What comes to mind when you think of the phrase up-and-coming stocks? A stock that is on the verge of taking off? A company that shows huge potential for growth? Maybe you’re hoping the stock is undervalued so you can buy at a great price? With any investment opportunity, savvy investors look for many, if not all of these things and more.
Additionally, a strong track record over recent months and years could be a key indicator of future success. More often than not, past successes may mean a long bull run is just around the corner. As mentioned earlier, we are still in a recovering market. Many sectors offer strong growth opportunities in the months ahead. Now if you’re looking for cheap stocks, this isn’t the list for you. This list only includes companies with strong track records of continued growth. While penny stocks can often produce high returns, they come with a much greater degree of risk. The following up-and-coming stocks are all trading for at least $33 or more. They all demonstrate long term upside. In fact, many of them have seen strong runs in recent weeks.
What Are The Best Up-and-Coming Stocks?
Up-and-Coming Stock #1 – AirBnB (Nasdaq: ABNB)
In a recent survey of 10,000 Americans, conducted by Harvest Hosts, the company found that the majority of participants had plans to increase travel this year. After being stuck inside for more than a year, it’s no surprise to see travel industries taking off. Tourism, cruise lines, aviation services, hotels and bed and breakfasts are all starting to sell out. And with the upcoming Fourth of July weekend and summer vacations taking off, this trend should only continue.
It’s not a surprise that Bryan Bottarelli is optimistic about AirBnB, as the company represents a huge threat to the Hiltons and Marriotts of the world.
“AirBnB is my #1 travel stock pick for 2021. It’ll be the biggest travel disruptor over the next decade”
“If you missed out on the huge gains from Priceline.com, AirBnB offers you a second chance “
Over the past few months the stock has dropped back down around its IPO price. The news may alarm some investors. However, those who see the long term growth potential of this up-and-coming stock are now presented with a great buy low opportunity. AirBnB still has quite a way to go to reach its February 2021 high of $212. But there is no reason to expect it will not meet and surpass that mark as the weather heats up.
Up-and-Coming Stock #2 – Live Nation Entertainment (NYSE: LYV)
Live Nation shares have seen tremendous growth since falling below $34 back in the Spring of 2020. In my recent “companies to invest in” article, Live Nation stood out to many readers as a strong growth stock on the rebound. As the world’s leading live entertainment company, it’s not hard to see huge potential here as our global economies continue to reopen.
At the end of Q1 2021, Live Nation announced that both their 2022 concert pipeline and their sponsorship commitments are up double digits from 2019. At the same time, the company announced $750 Million in cost reduction, as well a $1.5 billion Cash Management Program for 2021.
“After an 18-month hiatus, concerts are starting to sell out – which could make Live Nation one of the biggest slingshot stocks available today. I think you could see the stock price shoot above $100 very soon – as pent-up concert demand will remain red-hot for the next 12 to 24 months.” – Bryan Bottarelli
Up-and-Coming Stock #3 – Starbucks (Nasdaq: SBUX)
Since 1993, this stock has only had six down years. Even after the 2008 market crash, Starbucks saw a 143.76% increase the following year. As coffee culture continues to dominate across the globe, Starbucks has leaned on their innovative marketing and product consistency to stay one step ahead of the competition.
Starbucks is not a new name by any means. But it is still an up-and-coming stock because it has so much more room to grow. SBUX is up 11.64% YTD, and has outpaced the majority of the companies in the Retail-Wholesale sector. However, Starbucks has slightly underperformed other stocks in the Restaurant Industry sector. This does not come as a huge surprise as work-from-home numbers reached as high as 70% during the pandemic. Many office workers are still not back into their daily routine. For many commuters, this includes a stop at a nearby Starbucks.
“Over the weekend, I stopped into a Starbucks to see quite a sight: a mobile order line that was backed up for 45 minutes! The lines were out the door, and the demand was insane. The store was a madhouse. If people are starting to flood back into stores – now with an expanded menu that offers food – I could see sales remaining very strong.” – Bryan Bottarelli
Up-and-Coming Stock #4 – Tootsie Roll Industries (NYSE: TR)
Last on our list of up-and-coming stocks, Bryan turns his eye towards a group he is calling “nostalgia stocks”. One such stock that has been completely overlooked is Tootsie Roll Industries (NYSE: TR). With over 64 Million Tootsie rolls made daily, it’s not a surprise that one of the leading candy manufacturers has been on a bull run for many years. However, Tootsie Roll’s leadership is typically very shy when communicating with Wall Street, which could explain its relatively low profile.
“But here’s what I find interesting… 23% of Tootsie Roll shares are currently sold short. Not a single Wall Street analyst covers the company, which means that any sort of good news could sharply move the shares higher. And guess what? That’s starting to happen now.” – Bryan Bottarelli
Out of all of the stocks on this list, TR has gone up and down the most over the past five or so years. However, over the long run, Tootsie Roll’s stock has seen more than a 10,000% increase since its penny stock days in the early 1980s. Are sweeter days ahead for this up-and-coming stock?
What Other Stocks Will Boom in 2021?
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