#Another round of stimulus checks is on its way. #If your bills are paid and you have a strong emergency fund, it could be a great opportunity to invest that money in stocks that are due for big performances in 2021. #As long as you’re comfortable taking on some risk with your $600 stimulus check, there are some attractive buying opportunities out there that could potentially double your money.
#Three stocks that are particularly appealing today are #Modern (NASDAQ:MRNA), AMC #Entertainment (NYSE:AMC), and #Stride (NYSE: LRN). They’ve all fell in the past month, but that doesn’t mean the trend will continue into next year. #Here’s why these stocks could be strong buys in 2021.
#Moderna is coming off a terrific 2020. #Its share price skyrocketed more than 470% thanks to its COVID-19 vaccine, mRNA-1273. #On #Dec. 18, the U.S. #Food and #Drug #Administration (FDA) granted the drug #Emergency #Use #Authorization (EUA). The U.S. government has already ordered 200 million doses and can purchase 300 million more under its current arrangement with the company. #Moderna also has a supply deal with the #European #Commission for up to 160 million doses, and #Japan for another 50 million, in addition to deals with other countries.
mRNA-1273 is the company’s first major product to hit the market — and it’s a huge first opportunity. The COVID-19 vaccine market could be worth $100 billion, and because #Moderna and #Pfizer are the only companies with authorized vaccines right now, they are in a great position to establish footholds. #Big names like #AstraZeneca and #Johnson & #Johnson could also take sizable pieces of the pie, but for a company like #Moderna, whose main source of revenue up to this point has come from federal funding for its vaccine development, its top line will likely get a huge boost next year. #In #July, an analyst from #Jefferies estimated that #Moderna could bring in more than $5 billion in revenue annually from the sale of its vaccine. #And with other drugs in its pipeline (including a vaccine for #Zika and cytomegalovirus) and its mRNA approach proving to be successful, there could be even more growth ahead for the company in the near future.
#Shares of #Moderna have fallen 12% in the past month (while the S&P 500 has climbed 2%). #Now could be a great opportunity to buy this healthcare stock on the dip.
AMC is a risky stock to invest in, but the good news is that vaccines from #Moderna, #Pfizer, and other companies could help in its turnaround. 2020 was a tough year for the movie theater business as the coronavirus pandemic kept people home. #That wreaked havoc on AMC’s financials.
#In the nine-month period ending #Sept. 30, the company reported revenue of $1.1 billion — a mammoth 73% decline from the more than $4 billion in sales AMC brought in a year ago. #With more than 1,000 theaters and over 11,000 screens, the company desperately needs the foot traffic to bounce back.
#But now that there is a possible end of the pandemic in sight, there’s some optimism that things could turn around for AMC as early as 2021. #As concerns start to subside regarding COVID-19, that will inevitably loosen restrictions across the country and bring moviegoers back. #At the very least, things shouldn’t be nearly as bad for AMC as they’ve been since the pandemic began.
#With shares of AMC trading at around $2, it won’t take much for this stock to double your money if things go well in the new year. #At the start of 2020, the stock was comfortably sitting above the $7 mark. #While there’s definitely some risk here, there’s also plenty of upside for the stock should the economy rebound in 2021.
#Education company #Stride, previously known as K12, is a bit of a safer bet than AMC is. #It can even be an alternative buy for investors who may be a bit more certain that COVID-19 will stick around in 2021.
#Stride benefited from people staying at home during 2020. #Enrollment in its online and blended learning programs soared. #On #Oct. 26, it released its quarterly earnings numbers for the period ending #Sept. 30, and sales of $371 million were up 44.3% year over year. The company’s bread and butter is its general education segment, which is geared for kindergarten through high school-aged students. #It grew at a rate of 34.4% with revenue rising to $313.8 million during the period. #But its career learning division had an even more exceptional quarter, rising 142.5% to $57.1 million in sales.
#Online learning could continue to rise in 2021 if COVID-19 is enough of a concern for parents to keep their kids at home. #But even if that isn’t the case, there’s potential in #Stride’s career learning segment, which focuses on developing skills for in-demand industries. #With many businesses shutting their doors due to COVID-19 (and some jobs gone for good), people are going to need to upgrade or learn new skills — and #Stride can play a big role in that.
#Stride’s stock has only risen 5% this year despite more students learning online in 2020. #Investors may be concerned that its sales are mainly due to the pandemic and they won’t be sustainable once it’s over. #And while there’s no denying #Stride benefited from people staying at home, the pandemic also helped put its business on the radar as a viable learning option moving forward. #Whether it’s through its career learning division or just more people opting for online learning than in the past, investors shouldn’t discount the growth opportunities for #Stride. #According to a report from research company #Facts and #Factors, the market for e-learning could reach $374.3 billion by 2026, growing at a compounded annual growth rate (CAGR) of 14.6%.
#This could be an underrated growth stock to buy that could double your money — it just may take a little longer than the other two stocks on this list.
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