Analyzing every minute detail about the stock market is a very difficult endeavor and predicting its every small ebb and flow is nigh impossible. However, the essence of making a profit by investing in the stock market is by having a diverse portfolio that primarily targets stocks expected to make huge gains in the coming year or so. Here are 21 such stocks that together should make for a highly profitable and diverse portfolio over the next couple of years.
iRobot (NASDAQ:IRBT) – $2 billion:
It would be an understatement to say that the current age is the age of robotics and artificial intelligence and iRobot has been at the forefront of it in the consumer world with their Roomba vacuums and Braava mops. This means that they already have a very strong base and with strong growth on the cards, this is a very bankable stock to invest in.
Upwork (NASDAQ:UPWK) – $4 billion and Fiverr (NYSE:FVRR) – $7 billion
Another avenue that has been evolving quite rapidly is the remote workplace and freelance industry and this has been accelerated to a whole new level thanks to the pandemic that started more than a year ago. Both Upwork and Fiverr have been big players in this sphere and they have plenty of potential to grow. With their proven track record of connecting businesses and individuals and with more and more businesses going completely online, these two platforms will play a big part in it and their profit margins are only going to increase. While Upwork is the larger of these two platforms, Fiverr’s rate of growth is higher. Splitting your investment between these two marketplaces is a great way of taking full advantage of the predicted growth of this space.
Redfin (NASDAQ:RDFN) – $7 billion
Every portfolio also needs something stable and dependent and that is where Redfin comes in. Every year, real estate worth trillions of dollars change hands and Redfin acts as a brokerage firm for a lot of them. With more and more people opting to buy and sell homes online, Redfin’s market share and revenue will only increase and this is the right time to become a shareholder.
Beyond Meat (NASDAQ:BYND) – $8 billion
It should come as little surprise that sustainability and health consciousness are two of the biggest driving forces of the current generation and this will most like stay unchanged for the foreseeable future. The traditional meat-industry is highly detrimental to these motivations and as such, plant-based meat offerings have almost infinite market potential. Beyond Meat is currently the biggest name in this sphere and investing in it just as they are on the threshold of taking over a sizeable chunk of one of the biggest industries in the world is almost a no-brainer.
Etsy (NASDAQ:ETSY) – $22 billion
One of the unexpected benefits of the pandemic was the boost it provided the e-commerce industry. Etsy in particular experienced a year of record growth. However, this growth pales in comparison to what is expected to come. Etsy is the biggest name in the niche market of handmade products and vintage items and their brand value makes them a very healthy proposition for a stock investor.
Teladoc Health (NYSE:TDOC) – $29 billion
Another sector that saw a sudden boom during the pandemic was digital health for obvious reasons. As people get more and more accustomed to services being delivered remotely, platforms like Teladoc Health will only keep on growing. They have been able to come up with all the right innovations and marketing approaches at the opportune time and its recent merger with chronic condition specialist Livongo is a sign that it is only going to get bigger from here on.
Zillow Group (NASDAQ:Z) (NASDAQ:ZG) – $31 billion
This is another firm that has been doing a lot of business in the home buying/selling industry. Set up more like a marketplace rather than a traditional brokerage firm, they have been taking a big chunk of this trillion-dollar industry away from real estate agents and they show no signs of slowing down any time soon.
Pinterest (NYSE:PINS) – $41 billion
While most of the social media platforms like Facebook have reached somewhat of a saturation point, Pinterest is still one of the major players that still has a lot of untapped potential. Their platform while wide and diverse is based on projects, something that almost everyone seems to be involved in at some level these days. They have the community and audience for it but it is a platform that is a far way off from being monetized to the levels of the other social media platforms making this the perfect time to invest in their stocks.
Roku (NASDAQ:ROKU) – $42 billion
Streaming services have seen an unprecedented amount of growth over the last few years and of all the myriad streaming services available right now, Roku is the one that still has plenty of growth potential. They already have the technical expertise and their content database is growing each day to the point where they can go head-to-head with all the big streaming services like Netflix and Amazon Prime. This puts its stocks in the sweet spot you want it to be to make for a profitable investment.
Altria Group (NYSE:MO) – $76 billion
Irrespective of how many people loathe tobacco companies, they are here to stay and with the legalization of cannabis in many parts of the world including the US, a whole new and highly profitable avenue has been opened up for these companies that have been stagnant for many years. Altria is the biggest name going after the cannabis market in the US and as long as you do not have a moral problem buying their stocks, this is a financially worthwhile company to invest in.
MercadoLibre (NASDAQ:MELI) – $84 billion
We have all seen the growth and unstoppable nature of Amazon as an e-commerce platform. MercadoLibre can be seen as the Amazon of Latin America and if you missed out on investing in Amazon during its early days then investing in MercadoLibre stocks now should somewhat make up for that.
Intuitive Surgical (NASDAQ:ISRG) – $96 billion
The field of medicine and surgery has been enjoying new advancements with each passing day. However, with this rapid progress, we are starting to reach the limit of human capabilities and more and more medical procedures are being entrusted to robots and automated machines. Intuitive Surgical is one of the biggest and fastest-growing names in this industry which makes their stock very attractive.
Square (NYSE:SQ) – $98 billion
With the aforementioned boom in e-commerce, players who enable this digital commerce also play a big role and Square is one such player. Their Cash App has also been gaining a lot of market share in the world of payment services and together, they present a very appealing proposition.
Sea Limited (NYSE:SE) – $102 billion
Just like MercadoLibre, Sea Limited is another e-commerce giant that is often referred to as the Amazon of Southeast Asia, which also happens to be one of the largest consumer markets in the world. This company also dabbles in video games, which is another competitive but profitable market. With a huge market cap and plenty of growth predicted, it is still not too late to buy some of their stocks.
Philip Morris International (NYSE:PM) – $129 billion
Perhaps the biggest name that has received a shot in the arms with the legalization of Marijuana is Philip Morris. Again, you can skip this if you have strong moral convictions against their business, but purely from a monetary standpoint, they are slated to enjoy a similar level of growth first seen during the tobacco boom.
Salsforce.com (NYSE:CRM) – $204 billion
This is a bit strange as they primarily make their profit by acquiring other companies. Usually, this can be a risky venture but salesforce has proven their ability time and again to go after really profitable ventures in the software industry at the right time. Their recent acquisition of Slack is an excellent example of this. It has also helped them further their reach to a whole new level.
Walt Disney (NYSE:DIS) – $328 billion
Diversity is the key to success in investment and with Disney’s stocks, a lot of that work is already done for you. Disney has become a behemoth and while the pandemic hit their theme parks and movie division quite hard, it also helped them see a bumper debut year for their streaming service. As holders of some of the most popular intellectual properties in the world such as the Marvel Cinematic Universe, Star Wars, Pixar, and their own stuff, this is one stock that you can hold on to long term with the assurance that it will always make you profit.
Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) – $544 billion
Warren Buffet is a name that you cannot ignore when it comes to the stock market and while he may no longer make the headlines like he once used to, this stock which is his legacy happens to be one of the best value picks when it comes to stocks. It is one of the most dependable stocks you can get now and even though it won’t make you big profits, it will provide a certain level of security that every investment portfolio needs.
Bitcoin – $597 billion
This isn’t exactly a stock option but our end goal here is to create a diverse and dependable portfolio that covers all bases. With such an approach, Bitcoin cannot be ignored. While many expected the Bitcoin bubble to burst at some point, such predictions have failed so far. It is an incredibly volatile investment option and this will be a part of the risky venture in your portfolio. So, invest in it but minimally (around 1-2% of your total investment).
Amazon (NASDAQ:AMZN) – $1.6 trillion
While Amazon has become an absolute monster as evidenced by their market cap, believe it or not, they still have plenty of growing to do. With them entering new markets almost every day and investing in new technologies, they are here to stay for a long time. Their stocks can act as the dependable core of your investment portfolio that will show substantial amounts of growth if you hold on to them long enough while also keeping the risk factor to a minimum.
An honorable mention:
Genomics is one of the most exciting new spaces emerging and while a lot of the firms in this field are still in their nascent stages, it is a field worth looking into. If you do not want to go through the hassle of picking up the stocks in this field by yourself then take a look at ARK Genomic Revolution ETF as it seems to be quite promising.
To Sum It Up
While these stocks are a great option and they are all bullish as per conventional knowledge, the stock market is a very different beast that doesn’t always behave as it is expected to. This list should provide you with a good starting point but make your final choices based on how you feel about each individual stock and based on what your instincts tell you.