In this article we discuss the 5 best stocks to invest in 2021 for long-term profits. If you want to read our detailed analysis of these stocks, go directly to 10 Best Stocks to Invest in 2021 For Long-Term Profits.
5. Bilibili Inc. (NASDAQ: BILI)
Number of Hedge Fund Holders: 46
Bilibili is one of the best Chinese internet stocks to buy now. The company offers a video sharing platform in which users can overlay their videos with animation, cartoons and music. The company’s monthly active users are estimated to cross 400 million by 2023. Over 80% of its user base is aged under 35. Currently, it has over 54 million daily active users.
A total of 46 hedge funds tracked by Insider Monkey were bullish BILI at the end of the fourth quarter, up from 37 funds a quarter earlier.
In one of its investor letters, Tao Value highlighted a few stocks and Bilibili Inc. (NASDAQ:BILI) is one of them. Here is what Tao Value said:
“Bilibili (ticker: BILI) similarly reported a blast Q3 2020. Bilibili reached average MAU of 197m with high 7.6% pay ratio, showing strong user growth and high engagement. Additionally, the high margin advertisement segment showed exceptionally strong trend, growing 126% yoy. Though surprising to many, I think it is a natural outcome of building an ever-more valuable user generated contents platform. If it is not by ads, I believe these values created by Bilibili will accrue to it in other ways. One interesting data point is that management mentioned the average age of new cohorts are still around 20, indicating it is still in its early stage of a long growth runway. I am happy to see this position played out like how I envisioned in original thesis and will be excited to continue to follow its progress.”
4. Enphase Energy, Inc. (NASDAQ: ENPH)
Number of Hedge Fund Holders: 48
Enphase Energy is operating in an extremely niche and growth-oriented segment of the solar market. It provides software and hardware solutions to monitor solar energy usage; microinverters to convert direct current power from solar panels into grid-compatible alternating current (AC). The company dominates the market because of its innovation. In March, the stock was upgraded by Susquehanna and received a price target of $200. The firm likes the stock amid a rising demand of solar products from the residential sector. The firm’s analyst said that the recent selloff provides an attractive entry point for those who can “stomach short-term volatility.”
As of the end of the fourth quarter, there were 48 hedge funds in Insider Monkey’s database that held stakes in ENPH, compared to 42 funds in the third quarter. Sylebra Capital Management, with 1.97 million shares of ENPH, is the biggest stakeholder in the company.
3.The Cannabis ETF (NYSE: THCX)
Number of Hedge Fund Holders: N/A
This cannabis ETF is one of the best ways to ride the marijuana wave in the world. The cannabis ETF gives exposure to some of the best and innovative marijuana companies, including Aphria Inc., Village Farms Intern, GROW GENERATION, Canopy Growth Corp, Amyris Inc and Organigram Holdings. Marijuana stocks have been on fire since the democrats came into power, as analysts believe that there are no major obstacles for the green plant in North America anymore. Recently, New York legalized recreational use of marijuana. So far, 15 states have legalized marijuana.
2. iShares Global Clean Energy ETF (NASDAQ: ICLN)
Number of Hedge Fund Holders: 9
There’s hardly any doubt that clean energy stocks will be the biggest beneficiaries in the world’s shift towards green and renewable energy. Governments and businesses worldwide will increase their efforts to cut carbon emissions and invest in clean energy in the future. The clean energy ETF is one of the 10 best stocks to invest in 2021 for long-term profits. The ETF holds some of the best renewable and clean energy plays like Plug Power Inc., Enphase Energy Inc., Verbund AG and Meridian Energy Ltd.
A total of 9 hedge funds tracked by Insider Monkey were bullish ICLN at the end of the fourth quarter, up from 4 funds a quarter earlier.
1. MP Materials Corp. (NYSE: MP)
Number of Hedge Fund Holders: 32
MP Materials is a rare-earth materials company that mines Neodymium-Praseodymium (NdPr), which is used in the production of motors and equipment installed in EVs, robotics, wind turbines and drones. The stock is set to gain value as the demand for EVs and related products rise exponentially throughout the world.
As of the end of the fourth quarter, 32 hedge funds in Insider Monkey’s database of 887 funds held stakes in MP Materials, compared to 46 funds in the third quarter.
You can also take a peek at Top 20 Valuable and Innovative AI Companies in the World and 15 Biggest News Companies in the World.
