10 Stocks to Look Out for in 2021 — Growth/Disruptor Focused

Well, 2020 ended up not how I thought it would and I’m sure a lot of others were in the same boat. How could anyone ever imagine that the market would recover from an over -30% drop to posting an +18.4% gain for the year?

One word. Nuts.

2020 did, however, let me learn from my mistakes and learn about new and innovative companies/ideas out there that I think are ripe for the taking in 2021.

Below I’ve included my list of companies that I think will make some pretty decent returns in the new year. Generally, I stay more towards the growth & disruptor stocks so my recommendations will be based on those two factors where the upside is massive given the creation of a new market or disruption of an existing one.

Let’s begin.

Disruptor Picks

1. Company: Lemonade, Inc.

Lemonade

Ticker: (LMND)

Business Description: Apeer-to-peer property and casualty insurance company that offers its products to renters and homeowners in the United States and contents and liability insurance in Germany and the Netherlands. It uses bots to deliver insurance to consumers through its chatbot-driven application and at lemonade.com. It enables consumers to chat with artificial intelligence to file claims.

Why I’m excited: Given I like companies that disrupt industries, Lemonade is there to throw a nice wrench into the traditional insurance model. They are aiming to cut costs by using a bot, named Maya, to handle onboarding and claims. They don’t aim to take people away from other insurance companies but rather bring on newcomers fresh to the insurance game. What really excites me is their addition of pet insurance. Since many people treat their pets as a child, adding insurance offerings to them will grow topline sales immensely.

2. Company: Beyond Meat

Beyond Meat

Ticker: (BYND)

Business Description: The Company offers plant-based burgers in a range of categories, such as The Beyond Burger, Beyond Sausage, Beyond Beef Crumbles and Beyond Chicken Strips. The Company sells a range of plant-based products across the three main meat platforms of beef, pork and poultry.

Why I’m excited: I’m all for environmental sustainability and if you haven’t done your homework yet, we are running out of tillable land to raise cattle. It’s also impossible to provide that much protein to the world population, if they all decided to start eating meat like Americans do. Offering a plant-based alternative is going to have to be the future. Beyond meat being the only tradable security in the space (Impossible Foods is the other but it’s private) and is continuously growing its partnerships with some heavy hitters like Pizza Hut, McDonald’s, KFC and Taco Bell. Long-term, real winner!

3. Company: DraftKings

Draft Kings

Ticker: (DKNG)

Business Description: The Company provides users with daily fantasy sports, sports betting and iGaming opportunities. Its offerings include business-to- consumer (B2C) offerings and business-to-business (B2B) offerings. Its B2C product offerings include Daily Fantasy Sports, Sportsbook and iGaming.

Why I’m excited: Let’s face it, the sports betting industry is slowly going to become more widely accepted. As regulation gets looser, Draft Kings is going to be at the forefront of it all and will gain and retain market share.

4. Company: FirstSolar

First Solar

Ticker: (FSLR)

Business Description: First Solar is a provider of photovoltaic (PV) solar energy solutions. The Company designs, manufactures and sells PV solar modules with a thin-film semiconductor technology.

Why I’m excited: Playing into the theme of environmental sustainability and going “green”, I believe that First Solar will play an important part in that. Having Biden as President and with an agenda that highly promotes green, alternative energy, First Solar will definitely reap the benefits. This, along with more efficient technology, which is driving down costs, will entice more people to convert to Solar Energy to fuel their energy needs.

5. Company: Workhorse Group

Workhorse

Ticker: (WKHS)

Business Description: The Company is focused on providing solutions to commercial transportation sector and builds high performance electric vehicles and aircraft. As part of its solutions, it also develops cloud-based, real-time telematics performance monitoring systems. The Company is an Original Equipment Manufacturer (OEM) of Class 3–6 commercial-grade, medium-duty trucks.

Why I’m excited: Though not a “true” disruptor, aside from traditional combustion engines, I’m all for EVs and was a big fan of Tesla back in 2016 when it was trading at ~$180. Different than a lot of other EV companies on the market, I like Workhorse because of how many orders they currently have in their pipeline and how their sales have growing exponentially in the electric delivery vehicle space. I think this will be a long-term homerun with or without a purchase order from the USPS.

Growth Picks

  1. Company: Virgin Galactic
Virgin Galactic

Ticker: (SPCE)

Business Description: An aerospace company that provides human spaceflight for private individuals and researchers. The Company is focused on developing a spaceflight system to offer customers a multi-day experience culminating in a spaceflight that includes several minutes of weightlessness and views of earth from space.

Why I’m excited: Given that Virgin Galactic is the only directly related space company to buy into at the moment, I’m very excited about their eventual capability of suborbital space travel and commercial transportation. See what I mean here.

2. Company: Momentus

Momentus

Ticker: (SRAC) soon to be (MNTS) post SPAC merger

Business Description: As a first mover in building in-space transportation and infrastructure technology, Momentus is at the forefront of the commercialization of space. With an experienced team of aerospace, propulsion, and robotics engineers, Momentus has developed a cost-effective and energy efficient in-space transport system based on water plasma propulsion technology.

Why I’m excited: If you can’t tell already, I really like space. I am interested in Momentus because of the growing need to get satellites and equipment up to space. Acting as the last mile delivery, Momentus is positioned to take advantage of this growing space early on.

3. Company: AST & Science

AST & Science

Ticker: (NPA) soon to be (ASTS) post SPAC merger

Business Description: The company building a network of satellites it calls “SpaceMobile,” designed to deliver broadband from space directly to consumer smartphones. AST plans to launch the satellites into orbit at an altitude of 700 kilometers — or almost twice as high as the International Space Station’s orbit.

Why I’m excited: Faster internet and better coverage will be the name of the game in telecom services in the future. Being able to cover service deserts, at a reduced cost, with greater speed will allow AST to better serve the growing population coming online.

4. Company: Hydrofarm Holdings

Hydrofarm Holdings

Ticker: (HYFM)

Business Description: An independent distributor and manufacturer of controlled environment agriculture (CEA) equipment and supplies in the U.S. and Canada. Its products are used to grow, farm and cultivate cannabis, flowers, fruits, plants, vegetables, grains and herbs that allows end users to control farming variables, including temperature, humidity, carbon dioxide, light intensity spectrum and nutrient concentration.

Why I’m excited: This tacks onto my thesis for Beyond Meat about environmental sustainability. We are running out of land to grow crops and being able to grow crops indoors is not only efficient on many levels, but can easily be scaled vertically instead of horizontally. Hydrofarm being able to provide solutions for this growing industry, expected to hit $9bn by 2025 will put them on track to becoming a very successful company.

5. Company: Weedmaps

Weedmaps

Ticker: (SSPK) but TBD post SPAC merger

Business Description: A cannabis technology company which operates the online U.S. platform Weedmaps where users find and rate marijuana sellers. It’s essentially the “Yelp” of cannabis.

Why I’m excited: Once upon a time, I actually interviewed at this company during my banking days as I was excited about being a part of something weed and tech related. If you think about investing in an ancillary business, Weed Maps would be the one. With the recent change of Senate control to the Democrats, policy will become more favorable to pot companies and as they rise, Weed Maps will rise with them.

Disclaimer: I do hold positions in some of these stocks mentioned (SPCE, SSPK, NPA, SRAC, WKHS) at the time of publishing this article, and was not paid to do so. All opinions listed above are on my own account.

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Fan of sustainability and going against the status quo. High risk, high reward.

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Paul Cerro

Paul Cerro

Fan of sustainability and going against the status quo. High risk, high reward.

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