3 best stocks to buy in 2021 and hold for the next decade
Believe it or not, your calendar has now bid farewell to more than three quarters of 2021. Investors have had some twists and turns this year, and volatility has been the buzzword lately, but there are also ups and downs. incredible opportunities still on the table.
With that in mind, we asked a panel of Motley Fool contributors to identify the best stocks worth buying before the end of the year. Read on to see why they think investing in these three industry-leading companies will make you richer and happier in 2021 and beyond.
Make a long term reservation for growth
Keith Noonan: Despite recent volatility in growth-dependent tech stocks and persistent headwinds in the travel and hospitality sectors, Airbnb (NASDAQ: ABNB) the stock has managed to climb about 25% in the past three months. While the stock’s resilience has been impressive in light of the market turmoil, the leasing specialist’s stock price is still down 23% from its peak earlier this year, but I think that it will offer fantastic returns to investors who buy and hold the approach.
Airbnb has already created a leading platform in the vacation rental market and is poised to benefit from a powerful long-term network effect. More than four million hosts worldwide have listed their properties through the Airbnb platform, and the company has recorded more than one billion guest arrivals since opening its doors.
As more users turn to Airbnb’s convenient rental platform, more hosts will be encouraged to list their properties as potential rental spaces. In turn, a greater variety of potential stay options should help attract more users to the platform. The company already offers convenience and a variety of price and location options that outperform the competition, and it doesn’t look like those benefits are going away anytime soon.
Airbnb is a fantastic company with a long path for expansion, and the stock continues to offer attractive risk-return dynamics at current prices. The rental leader’s management team expects to deliver the best numbers ever when releasing third quarter results. Signs that Airbnb is helping boost the travel industry’s recovery could push stocks up significantly. The company faces persistent headwinds from the pandemic, but the company has proven to be a rare combination of strength and agility, and it appears well positioned to generate strong growth across the board.
A bet on two large and young capital distributors
Jason hall: At first glance, a business that owns billboards, rural broadband, and an insurance business probably doesn’t seem like a compelling investment over a decade. These three professions represent the majority of Boston Omaha‘s (NASDAQ: BOMN) sales, with stable revenues from its advertising and broadband activities. In addition, the operating result and free float of its surety insurance business represent modest growth opportunities.
What makes this company exciting is what the two founders and co-CEOs of Boston Omaha, Adam Peterson and Alex Rozek, are doing with the capital it provides. They find even better opportunities in which to allocate those funds to build a more valuable business over time. These investments include adding to its existing billboard and broadband operations as well as owning a litany of minority stakes in other industries. These include home building, commercial real estate management and brokerage, banking services, and even a PSPC or special purpose acquisition company.
Now is a good time to invest in a company that is looking to grow in this way and has a market capitalization of around $ 1 billion. A small stake in Boston Omaha at this point in its existence could pay off hugely over the next decade and longer as long as its co-CEOs prove they have the allowance odds they’ve shown so far. If they can do it for the long haul, it’s not excluded that this small-cap stock could be a 10-bagger or even more over the next decade.
Amazon liquidation is an opportunity
Jamal Carnette: Amazon‘s (NASDAQ: AMZN) the stock has recently underperformed the market, down 10% in the past three months compared to an equal return S&P 500. The driver was poorly received second quarter results in which the company missed analysts’ estimates on revenue.
However, the report was better than it initially looked after analysts analyzed the data. The underperformance was in Amazon’s e-commerce business, which makes sense considering it faced pandemic-era comparisons. Higher-margin segments like Amazon Web Services (AWS), third-party vendor services, and advertising outperformed and helped the company exceed its earnings estimates by 24%.
Despite a market cap approaching $ 2 trillion, the long-term trends supporting Amazon’s growth remain intact. E-commerce may seem ubiquitous, but only accounts for 14% of total retail sales. eMarketer expects this figure to rise to 20% in the next three years alone! Its other core business, AWS, is well positioned to benefit from further migration to cloud computing as additional use cases, such as artificial intelligence (AI), Internet of Things (IoT) and autonomous vehicles are put online.
Another potential catalyst is being overlooked by investors: unlike other mega-cap tech stocks, including Apple and Microsoft, Amazon has especially avoided the efforts of return on capital. You might remember that Tim Cook reset Apple’s dividend and even issued debt to buy back stocks. Not to be outdone, Microsoft CEO Satya Nadella recently announced a massive $ 60 billion buyout authorization.
To date, Amazon has been rather tight on cash after decades of profitability and little or no cash flow. However, as the latest results showed, the company’s profit trajectory has increased sharply. If history is any guide, you’ll see a more shareholder-friendly approach under the leadership of new CEO Andy Jassy over the next decade. With strong growth in its core business and the opportunity to start ROI efforts, Amazon is not too big to continue rewarding investors.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.