They’re Here! Our Top 5 Stocks For 2021
It’s finally here…
If you’ve been a paid subscriber with us for a while, then you may know that each year we issue a report on our top picks for the new year.
I’m happy to announce that our report, Top 5 Stocks For 2021, is now available.
This is easily one of our most popular — and highly-anticipated — reports.
There’s good reason for that. Not only do our readers enjoy reading what my colleague Jimmy Butts and his research team come up with, but if they follow his picks, chances are good they’ll make a killing.
In just a second, I’m going to tell you how to get your hands on this year’s report. But first, let’s take a minute to appreciate how difficult it can be to come up with a set of picks that actually delivers when it comes to beating the market. Especially last year…
A Year Unlike Any Other
Any time you do something like this, there are no guarantees. At StreetAuthority, we’ve been doing this report for more than 10 years now… and we’ve learned to take nothing for granted. It can be extremely difficult to predict what’s in store in a normal year — much less what we saw in 2020.
But in all our time doing this, this report has consistently proven itself as one of your best chances of scoring (multiple) market-beating gains in the year ahead.
In retrospect, it’s easy to say you saw something coming in 2020. If just… felt like we were due — for something. But none of us had any idea we would see a deadly pandemic sweep the globe, sending the markets into a tailspin. Then we had an unprecedented effort on the part of the Federal Reserve to lower interest rates back to zero, step into the bond market, and attempt to provide backstop relief to businesses around the country. Throw in the lockdowns, a major rally in the market, the most contentious presidential election in a century… well, you get the idea.
That’s what our picks for 2020 were up against. Not only that, but there were a couple of “controversial” picks thrown in there. (We’re not afraid of ruffling a few feathers.)
So the fact that we ended up with a few big winners and only one big loser is a feat unto itself.
How Our 2020 Picks Made Out…
I’ll give you an example. I remember last year, Jimmy and I were discussing what was perhaps his most controversial pick. But the logic was undeniable — and it was simply too good to pass up.
Jimmy’s pick, American Outdoor Brands, changed its name back to Smith & Wesson (Nasdaq: SWBI). Jimmy predicted that the iconic gun manufacturer would see a major catalyst in the presidential election. It happened leading up to the 2016 election, and it would likely happen again.
That’s exactly what happened… the stock returned 126%, making it our biggest winner.
Now, we believe in transparency. So let’s talk about the loser from last year’s report.
We believed that oil and gas company Occidental Petroleum (NYSE: OXY) would see a massive rebound. The stock had a terrible 2019, ending the year down 28% — and we thought it would have a major comeback in 2020. The stock’s hefty dividend yield of 6.8% and 17-year track record of consecutive increasing dividends was just too good to pass up.
Well, it turned out to have an even worse 2020. Oil prices dipped into negative territory in April 2020 for the first time in history. The company cut its dividend and shares ended the year down 58%.
Just a total whiff on our part. It happens from time to time.
But here’s the big takeaway. Overall, Jimmy’s picks did exceptionally well. The average return of last year’s picks was 30%, more than double the S&P 500’s return.
In the chart below, you’ll see how each and every one of our picks did against the S&P last year…
How To Get Our Top Stocks For 2021
Who knows what’s in store for 2021. While it’s safe to say we have some ideas, after last year, it’s anybody’s guess…
But if last year’s picks could do that well, then we’re confident in believing that this year’s picks have a good chance at beating the market despite whatever comes our way.
Now, this year we condensed our report down to just five stocks. Among them, you’ll find a conglomerate that will unlock value long after the world’s greatest investor is gone, a “picks and shovels” company that’s working behind the scenes to help all healthcare firms with vital vaccines and drugs… and more.
While their stories are different, they’re all tied together by the same thesis: We think each one has the potential to beat the market in the coming year.
Remember, there is a grand total of zero guarantees when it comes to investing. But Jimmy and his team feel more confident about this group of stocks than any other. And when you read the profile of each pick, it’s easy to see why.