2021: 8 NASDAQ 100 Listed Stocks To Look Out For
The end of 2020 and the start of 2021 were highly anticipated particularly because the former was not a very good year especially for the investor community. The pandemic and economic downturn had a huge negative toll on the markets but this new year brought with it some hopes in the form of vaccine rollouts and market recovery. Investors are keen on the market opportunities to tap into, especially in the form of high-growth stocks listed on major trading exchanges. One of the best places to start is the Nasdaq 100 index. (Source: Investopedia.com)
What is the Nasdaq 100?
It is an index that consists of listed stocks from 100 of the largest companies in terms of market capitalization. It also consists of companies from different industries but the financial industry is notably exempt from the index. If you are looking for the strong growth stocks, then the Nasdaq 100 should be the first place to look.
Nasdaq 100 history and management
The index has been around since 1985 and features the top 100 companies from industries such as healthcare, retail and technology segments. It is managed by Nasdaq Inc, which is helmed by Adena Friedman as the CEO and Michael R. Splinter and the Chairman.
Nasdaq 100 shares
The NASDAQ 100 index is also traded on the stock exchange as NDX. It closed its latest trading session at $13,402.37. The closing price is close to the 52-week high of $13,563.70 compared to the 52-week low of $6,771.91, indicating strong recovery after the 2020 slump.
Top NASDAQ 100 stocks to consider in 2021
The ongoing economic recovery means that there are many growth opportunities especially for top companies. Here are some of the high-growth NASDAQ 100 stocks that investors should watch out for.
- com, Inc. (AMZN)
Its performance over the past few years including in 2020 has been nothing short of spectacular. The ecommerce giant registered a 37% growth rate in Q3 2020 as e-commerce became the primary means of shopping for most people. It was also the first year of profitability for its international business outside the U.S. (Source: money.usnews.com)
Amazon share price almost doubled in the last 12 months. The stock traded as low as $1,626.03 in February 2020 to its current 52-week high of $3,552.25. Amazon targets more growth from key areas such as the healthcare services industry which might contribute to a stronger performance in 2021.
- Alphabet Inc. (GOOG)
The global village continues to expand digitally thanks to the internet and this expansion means big opportunities for advertisers on digital spaces. Google dominates more than 92% of all internet searches, which makes it an attractive option for advertisers that want the highest level of digital visibility.
Alphabet share price closed the latest trading session at $1,927.51 with a market cap of $1.392 trillion. The company’s stock price was overall bullish in January this year and the same applies for the last 12 months. Its current 52-week low is $1,013.54 while its 52-week high is $2,116.50. Alphabet targets high growth from its cloud services and the YouTube platform. Google reported 45% growth from its Google Cloud services in 2020, highlighting a lot of growth potential moving forward.
- UnitedHealth Group Incorporated (UNH)
The healthcare industry is one of the fastest growing industrial segments in the U.S. UnitedHealth is one of the key players in the segment particularly thanks to its attractive pricing as far as insurance plans are concerned. U.S President Joe Biden’s win means there will likely means there will be no healthcare reforms at least for some time. This is good news for the UnitedHealth because its will maintain its strong pricing power.
UnitedHealth share price traded at $337.89 at the end of the latest trading session with a $316.887 billion market capitalization. The stock has been trading close to its 52-week high of $367.95. It hit its 52-week low of $187.72 early in 2020. The company hopes to streamline its healthcare systems while providing better quality of care to tap into more growth in 2021.
- com, inc. (CRM)
Salesforce is one of the largest players in the customer relationship management (CRM) segment. Its cloud-based solutions have proved to be quite useful especially for the shift in work-from-home setting. Salesforce stock traded at $234.82 during the latest market close which is closer to the 52-week high of $284.50 than the stock’s 52-week low of $115.29. Salesforce expects to derive growth from CRM software demand. The company may also tap into more growth courtesy of synergies from Slack’s enterprise platform to boost its CRM offerings.
- NextEra Energy, Inc. (NEE)
Utility companies are not usually high up on the list of attractive stocks to choose from, but NextEra is the exception thanks to its different approach to electricity production. The company has shifted its attention towards wind and solar power which have lower electricity production costs compared to traditional means of electricity generation. The company is banking on the growing popularity of renewable energy.
NextExtra share price closed at $83.05 during the latest trading session with a market cap of $162.583 billion. The stock has a 52-week high of 87.69 and $52-week low of $43.70. The stock price was up to a bullish start in January 2021 and investors are optimistic about its future.
- Alibaba Group Holding Limited (BABA)
This Chinese behemoth has also been dominating the global ecommerce landscape and has become a notable competitor to companies like Amazon. It has also been one of the fastest growing Nasdaq 100 stocks for the last three years. That growth has also reflected on Alibaba share price which ended the latest trading session at $263.43 with a market cap of $738.508 billion. The stock has a 12 month low of $169.95 and a 12-month high of $319.32. Alibaba has its sight set on more growth in its local market and the international market especially now that the pandemic is at the tail end.
- Microsoft Corporation (MSFT)
This tech giant has not been making waves as much as it used to a few years ago but it is still one of the highest-growth and most popular stocks for investors. Microsoft stock traded at $243.00 per share at its latest market close with a market cap of $1.81 trillion. Software sales contribute a significant amount of revenue but the bulk of the company’s revenue currently comes from cloud computing. The latter is expected to continue generating more growth in the future, which means there is more room for growth. (Source: Kiplinger.com)
- United Parcel Service, Inc. (UPS)
The pandemic brought a lot of business to UPS as people shopped from home during lockdown. However, the company is expected to continue enjoying success even after recovery as business goes back to normal. Business-to-business deliveries are expected to increase. UPS stock closed the latest trading session at $159.71 with a $140.095 billion market cap. UPS is also benefitting hugely from the growing demand for ecommerce services.