The Motley Fool

I think these are some of the best shares to buy for 2021

Image source: Getty Images

In the end, 2020 has proven to be a turbulent year for investors. After a sharp market crash in February, many global equities bounced back swiftly. Nevertheless, the macroeconomic landscape has undoubtedly changed, with many companies struggling under the financial pressure caused by the Covid-19 pandemic.

Despite this, I’m confident 2021 could be a good year for global stock markets. After all, news of the coronavirus vaccine and government stimulus packages ought to prick up the ears of investors. With that in mind, I’m going to take a look at several stocks that I think rank among the best shares to buy as we move into 2021.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Stocks benefiting from an improved economic outlook

It comes as no surprise that companies operating in the travel and tourism industry received a battering this year. Widespread lockdown restrictions caused passenger numbers to almost completely dry up. Nonetheless, with vaccinations under way and improved coronavirus testing capacity, I think stocks found within this sector look set to bounce back strongly in 2021.

Airline companies like IAG, easyJet, Ryanair and Wizz Air could prove to be huge beneficiaries. As such, I reckon hoovering up several shares in these types of companies could be a smart long-term play. That’s particularly the case considering they’re still trading well below pre-covid valuations.

Not only do I feel airline stocks should recover nicely, but I’m confident business could boom for companies in the hospitality sector. Granted, that will only be once their doors are allowed to open without restriction. But while many of these businesses have been hit hard by the effects of Covid-19, they’re likely to recover strongly over time given the vastly improving outlook.

As a result, I think stocks such as Marston’s, Whitbread and InterContinental Hotels Group could turn out to be worthwhile shares to buy for 2021 and beyond.

Shares to buy regardless of the economic outlook

Regardless of the way 2021 begins to unfold, there are several shares that I’d buy come what may. Most of them share a few key characteristics, including their ability to maintain stable earnings despite unfavourable trading conditions.

I’m thinking of healthcare giants like GlaxoSmithKline and AstraZeneca. Not only do these two companies boast defensive characteristics, but in my view, they also present significant long-term growth potential. What’s more, the pandemic has further exposed the vital role these drug manufacturers play in keeping the world safe and healthy.

One of the few sectors to profit in spite of the pandemic was online retail. Furthermore, given the shifting consumer trends, the sector looks likely to benefit from long-term growth. While strong sales over the period of the pandemic don’t guarantee continued future success, they certainly underline the resilience of the underlying business models.

Considering this, I’d rank companies like ASOS, Boohoo and AO World among the best shares to buy for the coming year and beyond. All three performed outstandingly in 2020 and I think they look set to continue this momentum moving forward.

Still after more of the best shares to buy for 2021? Take a look at this top pick from The Motely Fool’s experts…

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

Matthew Dumigan owns shares of boohoo group and International Consolidated Airlines Group SA. The Motley Fool UK has recommended ASOS, boohoo group, GlaxoSmithKline, InterContinental Hotels Group, Marstons, and Wizz Air Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Where to invest £1,000 right now

Renowned stock-picker Mark Rogers and his select team of expert analysts at The Motley Fool UK have just revealed 6 "Best Buy" shares that they believe UK investors should consider buying NOW.

So if you’re looking for more top stock ideas to try and best position your portfolio in this market, then I have some good news for your today -- because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.