The Year 2020 was very painful for some investors as all their long-term holding gains were destroyed in the months of February and March 2020 due to the global pandemic of novel coronavirus 2019. Some lost their lives due to financial crisis and international-wide lockdown.
But Time never remains the same, and after every dark, there is a spark of a shine, so we expect the year 2021 to be more prosperous than 2020. In 2020 Brent crude once had a negative price and oil prices fall heavily, Gold hit an all-time high in 2020, Donald Trump lost to Joe Biden which all has been a factor in the stock market.
In the year 2021, we expect Silver to outperform rather than gold, all consumption stocks to outperform, infrastructure and insurance stocks to outperform. As per our deep research, we have come to the conclusion that the following 3 stocks could outperform in the year 2021.
1. HDFC LIFE INSURANCE COMPANY LIMITED
Many have lost their lives in 2020, hence we expect life insurance companies to have substantial revenue growth this year. As all investors are keenly waiting for the Life Insurance Corporation (IPO).
They are missing the opportunities in investing in HDFC Life we expect this stock to be in 4 digit Coming years. Some may say that this stock has a high PE Ratio and Promoter Holding has also been decreased in the last six months hence not to Buy.
But as per our Research, this stock may easily achieve a target of Rs 850/- in the year 2021. The stock can give more returns on investment rather than fixed deposits in a bank account. The stock is not at over brought levels hence it is the decent entry point for the investment.
Also, Don’t forget that all other companies of the HDFC group have outperformed over the years hence HDFC Life will also outperform is our expectations.
2. JSW STEEL LIMITED
As we are expecting that silver may outperform and all those commodities silver in colour may outperform in the year 2021. We had picked JSW Steel Ltd for the investors the stock currently is trading at the levels of Rs 400 and an all-time high of the stock is Rs 430, we expect that stock can easily breach its all-time high of Rs 430 and set a new all-time high of Rs 530 as well.
If someone is waiting for correction then SIP in it, buy it on every dip. The business has the strength to expand grow over the years. If we compare the stock current price with its intrinsic value of Rs 1692 then it is fairly undervalued.
Other Group companies of JSW like JSW Energy & JSW holdings also have provided a decent return over the years.
3. BURGER KING
As we expect that consumption stocks may outperform in the year 2021, we had picked up burger king for the investors. Burger King was recently listed on the stock exchange in the month of December 2020.
The peers like Jubilant foods work limited (Dominos) has given a high return on investment to the investors who had bought them in the 2020 pandemic crisis almost triple of investment has for the investors. Burger King IPO Issue Price was Rs 60 and had hit a high of Rs 210 we expect it to cross it high and to trade above it.
It is one of the best bets for long-term investors as the company is constantly working on over its marketing of product and good value for its customers and investors.
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