What Are the Top Stocks to Watch in February?
Stock-Markets / Stock Market 2021 Feb 11, 2021 - 04:15 PM GMTBy: Boris_Dzhingarov
Stimulus + Stimulus = Robust Recovery in the Stock Market
With 2020 behind us, 2021 is shaping up to be a better year for the financial markets. Trader and investor optimism have strengthened, across most markets, including Emerging Markets, the Eurozone, and the United States. The ravages of a short-lived bear market were devastating, but the bulls are stomping their hooves.
This year, markets are expected to rebound on the back of several key elements, notably mass vaccinations of the global populace, multiple government stimulus efforts, and the development of a robust new-age, digital economy. All of these factors are coalescing to create new economic opportunities for growth.
In the US, a concerted effort to drive social spending, courtesy of a $1.9 trillion stimulus package is fast gaining momentum. This, on top of a $900 billion stimulus is rocket fuel to recovering equities markets. Real GDP growth in 2021 is expected to hit 6.0% in emerging markets, 5.2% across the Eurozone, and 3.1% in the United States – data courtesy of the IMF World Economic Outlook, October 2020.
In the United States, strong growth is forecast, particularly as it relates to the digital economy. Remote work assignments, virtual classrooms, online consultations, and teleconferencing have boomed since the pandemic, and massive development of these sectors is expected to continue. Unfortunately, service-related industries where the in-person experience is sacrosanct have suffered tremendously. Hotels, travel, restaurants, and retailers are cases in point.
As far as pro-growth and slow-growth sectors are concerned, the following industries are noted:
– Healthcare, technology, consumer staples, and home improvement have boomed
– In-person food service, travel, retail, and energy have suffered
With that in mind, we turn our attention to the top stocks to look out for in February 2021.
Sunworks Inc. (NASDAQ: SUNW)
Source: Yahoo! Finance
Sunworks, Inc. (SUNW) trades on the NASDAQ, as a clean energy stock. The company's market capitalisation of $505.3 million is relatively small by Wall Street standards, and the prevailing price of $21.20 is markedly higher than its opening price in January of under $5 per share. The 4-fold growth for the YTD is remarkable, even by NASDAQ standards. The 1-year target price of the stock is just $0.80, and the mid-term to long-term performance outlook is bullish.
On a rating scale of 1 (strong buy) to 5 (sell), SUNW is currently at 3, as a hold. The good news is Joe Biden is president, and his agenda vis-a-vis clean, green energy is going to resonate with Congress and companies like Sunworks, Inc – an up-and-coming solar sector company. Once this company gains mainstream appeal, the stock price is likely to reach new highs. This US-based stock is one of many in a hugely popular basket of green stocks to trade.
Hedosophia Holdings Corp. (NYSE: IPOE)
Source: Yahoo! Financial
Social Capital Hedosophia Holdings Corporation (NYSE: IPOE) is currently trading around $23.10 per share, with a neutral performance outlook over the mid-term and long-term. This company’s stock price shot up in 2020, from just $12.20, to its current level. Very little data exists about the actual stock’s performance to date, but IPOE has a market capitalisation of $2.324 billion. This shell company is a financial services enterprise led by top business entrepreneur Chamath Palihapitiya. That alone is reason to stand up and take notice of the stock.
Microsoft Corp. (NASDAQ: MSFT)
Microsoft Corporation (NASDAQ: MSFT) has been a star performer in 2021. Currently, the stock price is hovering around $242.20, from $217.69 at the start of the year. The 1-year target estimate price for Microsoft is $272.69 according to Yahoo! Finance analysts. This stock
is bolstered by way of strong earnings. MSFT has beaten expectations in Q1 2020, Q2 2020, Q3 2020, Q4 2020, and it is expected to beat expectations in Q1 2021 too. On a recommendation scale of 1 (Strong Buy) to 5 (Sell), MSFT ranks at 1.7. The company revenue in 2020 was the highest yet, at over $143.01 billion, with earnings of $44.28 billion.
MSFT remains a growth stock, as it recently was awarded a US Defense Department contract known as JEDI, or Joint Enterprise Defense Infrastructure. The $10 billion, 10 year contract is a major feather in Microsoft's cap. The technical indicators for MSFT remain bullish, with the upper Bollinger Band above the spot price, at $248.76, the median band at $227.89, and the lower band at $207.01. The rapidly rising price outpaces the short-term moving average (50-day MA) of $221.52, and the long-term moving average (200-day MA) of $207.17. By all accounts, MSFT is a buy.
Palantir Tech Inc. (NYSE: PLTR)
Source: StockCharts (NYSE: PLTR)
Palantir Tech Inc is the brainchild of Peter Thiel, the founder of PayPal, along with Elon Musk. PLTR is trading at around $34.05 per share, with a 50-day MA of $27.85 and an undefined 200-day MA. The Ichimoku Cloud indicates bullish sentiment moving forward, with strong momentum. This technology stock’s products havewidespread applications in the cybersecurity arena. In Q3, 2020, PLTR stock beat earnings expectations, and the stock is currently regarded as a Hold – Underperform.
These stocks rank among the top stocks to watch in February 2021. As with any stock, it’s especially important to evaluate the technical and fundamental features prior to trading or investing. Stock prices can turn on a dime, and up-to-date facts are reports are necessary to make the right trading decisions.
By Boris Dzhingarov
© 2021 Copyright Boris Dzhingarov - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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