I’ll cut to the chase. These three stocks will outperform the market in 2021. All three companies have excellent leadership, are riding massive tailwinds, and have a history of outperformance. If you are looking for three stocks to help lift your portfolio’s overall returns, look no further.
This stock is a massive e-commerce enabler
One of my most bullish picks, Shopify (TSX:SHOP)(NYSE:SHOP) is a no-brainer for every portfolio. Some may argue Canadian bullishness comes from a bias that we have for our favourite home-country superstar. However, one thing that cannot be argued is the return Shopify has produced since its IPO.
A leading e-commerce enabler, the company boasts a user base of more than 1,000,000 merchants. During the Black Friday/Cyber Monday weekend, Shopify merchants sold a combined US$5.1 billion. That is the largest total ever recorded and served as a small sample of what investors should expect going into the Christmas shopping season. With its earnings call just around the corner, time may be running out for you to jump in before the stock explodes again.
Renewable energy companies have a lot more room to run
One of the most exciting spaces to invest in today is the renewable energy industry. This spans a wide array of companies from electric vehicles (e.g., Tesla) to hydrogen fuel cells (e.g., Ballard Power Systems). However, I believe the most underrated space right now is the utility sector.
Companies like Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) are poised to post market-beating returns over the next decade. With newly elected president Joe Biden leading the way in the United States, the renewable space is set to take off in the 2020s. Brookfield Renewable has done an excellent job of acquiring new projects to add to its quickly growing portfolio. As it stands, the company is set to raise its total production capability from 19,000 MW to 23,000 MW in the coming years.
Businesses are digitizing operations
One of the largest trends is the rapid digitization of the enterprise space. From accounting to payroll to human resource management, businesses are increasingly turning to services that allow them to streamline certain processes. Docebo (TSX:DCBO)(NASDAQ:DCBO) provides a cloud-based, AI-powered eLearning platform for enterprises.
Already boasting a customer list that includes Walmart, Appian, and Thomson Reuters, Docebo landed a multi-year partnership with Amazon last year. Winning a contract that allows the company to power AWS Training and Certification courses for the next few years, Docebo continues to prove its worth. The company also recently held its American IPO, which provides Docebo with greater access to capital.
This stock was one of the stars coming out of the March crash. However, Docebo stock has understandably slowed down in recent months. It appears as though many investors have forgotten about the company’s potential. Don’t sleep on this future market giant.
If you want to add three market-beating stocks to your portfolio, look no further than Shopify, Brookfield Renewable Partners, and Docebo. All three have a history of market-beating performance, are riding strong tailwinds, and have great leadership.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Appian, Brookfield Renewable Partners, Docebo Inc., Shopify, and Tesla. David Gardner owns shares of Amazon and Tesla. Tom Gardner owns shares of Appian, Shopify, and Tesla. The Motley Fool owns shares of and recommends Amazon, Appian, Shopify, Shopify, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.