Which stocks should I invest in next?

3 top stocks for 2021

Looking for top stocks for 2021? The year 2020 is drawing to a close and many fools have to slowly position themselves for the next year. Reason enough to choose potentially good stocks for the coming year.

If you keep your focus on growth stocks, stocks like Varta, Zalando or Infineon to be interesting.

These stocks are not cheap at the moment. But that is a fact that applies to most stocks on the capital market.

However, the advantage of these stocks could be their strong growth, as this could quickly put the valuation into perspective in the medium term. So let's take a closer look at these stocks.

Potential top stocks for 2021 ...

Varta share

The first top share for 2021 is Varta, a manufacturer of micro batteries, household batteries and energy storage systems. The company also offers customer-specific battery solutions for a variety of applications.

These are all products that can be of great importance in a wireless future. The trend towards rechargeable batteries is also noticeable at Varta. In the first nine months of 2020, the company was able to increase group sales by a whopping 160% to EUR 630 million.

The sharp increase is also due to the acquisition of Energizer's European consumer batteries business. If this is factored out, organic sales have still increased by almost 70%.

The company is currently benefiting in particular from the strong demand for lithium-ion batteries for high-tech consumer products. These can be found, for example, in the popular Apple AirPods.

One could assume that business will continue to do well in the following year 2021. Most recently, the management board again increased the forecast for the full year 2020. In 2021, the billion-euro turnover threshold is also to be reached. Adjusted EBITDA is also expected to grow faster than sales.

Zalando share: top share for 2021?

The second share that growth investors should have on their radar for 2021 is Zalando, Europe's leading online platform for fashion and lifestyle.

As a company in the e-commerce sector, it basically benefits from the online retail megatrend. This offers customers numerous advantages and is taking more and more market share away from stationary retail.

The current high growth rates suggest that growth could remain high for years to come. In the third quarter of 2020, sales increased by 21.6% to 1.85 billion euros. There is also positive news to report on the earnings side. Here, adjusted EBIT rose from EUR 6.3 to EUR 118.2 million in the third quarter of 2020.

Infineon share

The third and final top share for 2021 is Infineon, a leading semiconductor manufacturer for the automotive industry. If you look at how the automobile is being digitized, a market with potential is opening up for Infineon.

The recently completed takeover of Cypress Semiconductor can be interpreted as a strategic further development of the company, which makes Infineon a leading provider of system solutions for automotive, industry and the Internet of Things.

For the 2021 financial year, Infineon expects sales of around EUR 10.5 billion, plus or minus 5%. Compared to sales in 2020, the increase in sales amounts to a whopping two billion euros. The free cash flow is expected to amount to more than EUR 700 million.

Conclusion

You never know exactly what the future will bring. A knack of luck is therefore always part of investing. We won't see who owns this for a year.

The post 3 top stocks for 2021 appeared first on The Motley Fool Germany.

Our top niche share with potential to become a technology star (advertising)

Every Amazon of tomorrow starts small. That's why small caps are so interesting. Our top small cap for 2020, which many of our analysts are enthusiastic about, serves an important and rapidly growing market that is becoming even more important in times of corona prevention.

The number of data breaches and hacker attacks continues to increase, and protecting yourself against them is therefore becoming increasingly important. Our top niche share helps companies with the login management and data security of their employees, regardless of where they work.

This is particularly important when working from home. Last year's sales growth of 47% shows that the demand is enormous. We'll give you all the details in our brand new special report.

Get it now for free! (Advertisement)

Frank Seehawer has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Zalando.

Motley Fool Germany 2020

Photo: Getty Images