It is no secret that last year was full of challenges. However, it’s time to look ahead to 2021 as well as the equity investing opportunities it offers. People should keep in mind that, the new year does not promise any less uncertainty than its predecessor, so investors should remain cautious, as always. Importantly, this suggests caution when picking the stocks that will be poised for a big rebound in 2021.
Let’s start with consumer discretionary stocks. As a reminder, they suffered losses due to economic shutdowns in 2020. However, they stand to gain after the Covid-19 vaccine makes social events safer as well as more accessible. Importantly, entertainment businesses that own venues and theme parks suffered badly in 2020.
However, with an economic reopening in the air, foot traffic may return to when a vaccine makes it safer for people to enjoy social activities in public. Interestingly, these three stocks have the potential to be bought at a discount now, with the prospect of consumers returning as the economy opens back up. For example, Dave and Buster’s, Live Nation Entertainment, and Six Flags.
Let’s have a look at restaurants. Last year, this industry struggled to cope with problems. Nevertheless, it is possible to choose interesting stocks such as U.S. Foods, Starbucks, and Restaurant Brand International.
Industrial stocks and new opportunities
In 2020, airlines suffered heavy losses due to the coronavirus pandemic. However, this year people might finally be able to travel in and out of the country. As a reminder, airlines are considered part of the industrial sector.
Importantly, in this sector, investors might keep an eye out for companies that move goods from one point to another and those that manufacture shipping-related products. It is worth noting that, airlines stocks were especially affected, and an acquisition when flights are still limited, could set you up for gains. It makes sense as people will feel safe and comfortable in too-close coach-class seats once again. People should pay more attention to FedEx, UPS, Delta, American Airlines, and Southwest Airlines.