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Best Performing Stocks to Trade in 2021

While there is no perfect metric to predict the potential return-on-investment (ROI) of a stock purchase,  the best-performing stocks can be defined as those with the biggest percentage gains over a specified period of time.

Many stocks defied the COVID-19 pandemic to rise in value, some even recording all-time highs. We have therefore identified the best-performing stocks to trade in 2021.

Where Can I Trade the Best Performing Stocks?

Buying or selling an asset can be done via an exchange, but you’ll use a broker to facilitate the process, most likely an online broker. Since choosing the best broker is important, we’ve shortlisted some of them for you.

1
Coinbase (COIN)
Our score
10
One of the most successful IPOs in 2021, putting Coinbase at a valuation of over $80 Billion.
The New York Times called its listing a “landmark moment” for Bitcoin and the cryptocurrency industry.
Founded in 2012, COIN displays an impressive performance with +$1B in revenue in Q1 2021.
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2
Biogen (BIIB)
Our score
9.3
The US-Based biopharmaceutical is one of the pioneers in neuroscience and therapies for other disorders
Researchers at Biogen might be close to a breakthrough on diseases like Alzheimer and set to get approval from the FDA
Votatile stock but some experts consider it as a good long-term opportunity
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3
Apple (AAPL)
Our score
8.7
Market Cap $1.4 Trillion
Highly-Traded Shares
$22 Billion Capital Returns
Description:
Apple continues to be one of the most popular stocks in 2021, following an impressive 29% increase in Mac sales in 2020. As a pillar of the NASDAQ and with a $2.0 Trillion Market Cap, Apple is an enticing prospect for any investors looking to broaden their portfolios this year.
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4
NVIDIA (NVDA)
Our score
8.5
One of the biggest hardware manufacterers in the world
Impressive net income figures above $2.8B in 2020
Nvidia chips are being used to drive AI Adoption
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5
Amazon (AMZN)
Our score
7.9
$1.44 Trillion Market Cap
Room For Growth
Over 450% Growth in 5 Years
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What is the Best Performing Stock?

The stock market consists of many exchanges, brokers, hedge funds, and institutions that buy and sell shares in companies. The exchanges include the New York Stock Exchange (NYSE) and the Nasdaq, and two of the best performing Nasdaq stocks in 2020 were Tesla and Amazon.

What Are the Trading Hours for Best Performing Stocks?

Trading hours may vary depending on the opening and closing hours of the exchange. The NYSE and Nasdaq timings are 9:30 am to 4 pm Eastern time on weekdays.  Generally, there is a lot of volatility in the early hours (when the markets open) because institutions and traders move to take new positions and sell off the current ones. 

It used to be only possible to trade stocks by visiting the exchange or calling a broker, but nowadays you can trade stocks online from the comfort of your home, still subject to the same market hours. 

Trading Best Performing Stocks in 3 steps

1

Open a Trading Account

Before you begin to invest in stocks, you are going to need to open a trading account on your selected brokerage platform. This is a relatively simple process, taking only a few minutes to select a username, select a password and provide a contact email or telephone number. After this, you will need to provide some identification such as a valid passport or driving license to verify your account.  

2

Choose a Stock

Once you have your trading account fully activated, you can add funds using a debit or credit card. These deposits rarely have fees attached, but it is always worth checking to make sure when you select which broker you plan to use. Once this is done, you can navigate to the stocks trading page and select the stocks of your choice.

3

Place Your Trade

Finally, If you are a beginner, it is worth making use of the demo account before committing to any actual trades. These practice areas allow you to get a feel for the platform, and get comfortable with the trading mechanisms and available features. You can start purchasing stocks in a live account once you feel comfortable.

Which is the Best Performing Stock to Trade?

We have identified these best-performing stocks to trade in 2021:

  1. Netflix NFLX
  2. Tesla TSLA
  3. Apple AAPL
  4. Amazon AMZN
  5. Novavax NVAX
  6. PayPal Holdings PYPL
  7. Nio NIO
  8. Nvidia NVDA
  9. Boeing BA
  10. Advanced Micro Devices AMD

Netflix (NFLX)

Netflix is one of the most popular streaming platforms for both movies and series. It recorded significant growth as the pandemic forced many people across the globe to stay at home. This company has a market cap estimated to be around $247.61 billion at the time of writing. The downside is that this stock is volatile for beginners to invest in, and is fairly expensive.  

Tesla (TSLA)

Tesla was one of the biggest gainers in 2020, rising by almost 743%. The company, which was founded by Elon Musk, became a cult stock among those looking to enter the market for the first time. Many day traders trade Tesla to benefit from the volatile share price. Since 2019, the stock jumped from $60 to $800 per share, cementing its place as one of the best-performing companies in the stock market.

Apple (AAPL)

Apple has a huge market cap, and many still believe there are further gains to be made despite this company’s status as one of the world’s most valuable. Apple was the first company to hit a $2 trillion valuation, and many expect it could go to a $3 trillion valuation if the company decides to support cryptocurrencies.

Amazon (AMZN)

Amazon provides a global marketplace and its market capitalisation is just behind Apple’s. Trading Amazon is not for the faint-hearted due to its high and volatile share price that can result in large gains or losses in a short space of time. But we can still consider it to be one of the best-performing stocks of all time due to its long-term growth trajectory. 

Novavax (NVAX)

Pharma company Novavax is one of the competitors in the COVID-19 vaccine race, so it’s no surprise that it was one of the best-performing stocks of 2020. Investors could see yet more growth, but beware that the share price has become volatile in 2021.

Expert Tip on Investing in Best Performing Stocks

It would be wise not to “buy the hype” of these stocks because many novice investors make the mistake of buying high only to see the share price fall. You should research the company's earnings and other fundamental figures rather than getting distracted by what others have to say. Put simply, trust your own research.

Why Trade the Best Performing Stocks?

There is a saying in the stock markets, which is “the trend is your friend”. This means that a rising stock is more likely to keep rising than to reverse its course, and it’s a brave contrarian who bets against a best-performing stock. Just don’t take this as an indication of surefire success, since even the best-performing stocks can fall from grace. Buy in with manageable amounts of money, and diversify across several stocks.

Frequently Asked Questions

  1. The main difference is that the forex market focuses on trading currencies, while the shares market is for trading stocks. Forex is usually done via contracts-for-difference (CFDs) while stocks are usually traded via a stockbroker or a share dealing account provided by your bank.

  2. The best-performing stocks can be profitable in terms of a rising share price, but some high-performing shares are not necessarily those of profitable companies. Shares can be bid up speculatively for companies that could become highly profitable in the future.

  3. Several stocks did well in 2020 and into 2021 because they benefited from pandemic lockdowns (e.g., Netflix), or had a good growth story (e.g., Tesla), or were hyped on social media (e.g., GameStop).

  4. This question may be better phrased as, “How can you trade best-performing stocks safely?” The answer is to diversify across several stocks, buy them when the share price dips, and consider placing a “stop order” to get you out of a losing position automatically if the share price goes too far against you.

  5. The best-performing stocks can help you make a lot of money in a very short time, providing they keep going up, but beginners should remember that what goes up can go down— fast and far.

  6. Stocks are typically traded when the respective exchanges are open during local market hours. Check the times for the markets (e.g., the New York Stock Exchange or the London Stock Exchange) where your chosen stocks are listed.