2020 was something of a rollercoaster year for the stock market. While 2021 is a little steadier, there is still potential for a lot of movement to happen. With half the year gone, let's look at the sectors and stocks that are set to be worth watching in the coming months.
Tech stocks
The technology sector has gone from strength to strength and was one of the few who weathered the pandemic storm. One example is Take-Two Interactive Software, US-based video game creators. The company owns two brands; Rockstar Games and 2K, which are responsible for developing a long list of mobile games as well as game franchises popular in the eSports sector. It is one of the top publicly traded video game companies in the world, with a value of more than $14 billion. Apple is always an option to invest in as it continues to grow. It also has spurts of activity around the time they launch a new product such as the iPhone 13 due later in the year.
PayPal, Snap Inc, and Alibaba are also worth considering if you are investing in the short term. Typically, those traders interested in short-term trades prefer binary options. These offer a quick turnaround and are suited to volatile industries or companies where you expect quick changes to happen, like with Apple for example. Equally, these trades are ultimately set around a yes or no question. These kinds of trades allow traders to harness volatility with the opportunity to make a profit if their decisions prove to be correct.
Travel stocks
While the pandemic is still with us, many tourism services seem set to resume business as usual during 2020. The summer season should see significant amounts of travel taking place, therefore stocks such as Booking Holdings and Hilton Group are worth watching.
Booking.com is one of the world's biggest online travel websites and its holding company also has rentalcars.com and kayak.com. The company took severe action at the start of the pandemic, sacking 25% of staff, but it meant they survived the pandemic well. Airbnb is also one to watch, as are Southwest Airlines, American Airlines, Marriot International, and Disney.
Pharma stocks
It will come as no surprise that companies in the medical and pharmaceutical industry did well during the pandemic and the first half of 2021. Health is still very much a hot topic as people are getting vaccinated, trying to stay healthy, and dealing with the virus itself. Both Novavax and Moderna have been involved in developing COVID-19 vaccinations and they are expected to experience rapid growth during the rest of the year. BioNTech SE and Regeneron have both got products in the market that are being used to fight COVID-19.
You could also speculate on the value and volatility of medical and healthcare stocks like Vertex Pharmaceuticals, Johnson & Johnson, DaVita, CVS Health Corp, and Medtronic. Even if the pandemic continues to abate, it's still going to be a strong year for businesses in the health sector.
But remember, in trading there is no such thing as a guarantee. Stocks can change in value in the blink of an eye, and not always in the way you thought they would. Be careful when investing your money in any kind of trade and be sure to read up and absorb all the information possible on the sector and companies you invest in!
