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Investors name their top 6 stock picks for 2021

Jessica Yun
·4-min read
Australian Dollar Flying in City
Here's where the experts are putting their money in 2021. (Source: Getty)

If your financial resolution is to start investing in the new year, you’ve come to the right place.

But if you’re totally new to investing, it might be hard to know where to start.

Yahoo Finance has you sorted – we asked the experts to hand-pick a few stocks they expect will explode in 2021.

Some are brands you’re very familiar with, like Kogan, while others are a lesser-known. Here’s what they said.

Treasury Wine Estates (ASX:TWE)

  • $9.42 per share

Scott Phillips, chief investment officer, Motley Fool Australia:

2020 was the winemaker's annus horribilis, with sales problems in the US and geopolitical fallout in China crimping sales. And, to be frank, no-one knows how long the pain might last.

But the shares are currently cheap, the brands remain sought-after, and the clouds will eventually pass. When they do, I expect sales to be stronger, profits to grow, and the share price to reflect that brighter future.

Kogan (ASX:KGN)

  • $18.77 per share

Scott Phillips, chief investment officer, Motley Fool Australia:

In contrast, Kogan had a wonderful year, benefitting from the increased rush to ecommerce (some numbers suggest ecommerce penetration doubled in the first three months of the year, in the US, for example), but rather than changing Kogan's business, COVID simply sped up a trend that was already in place and bearing fruit.

While getting year-on-year growth might be tough in the middle months 2021, Kogan's increasing presence in our lives is here to stay.

Data#3 (ASX:DTL)

  • $5.59 per share

Jun Bei Liu, portfolio manager, Tribeca Investment Partners:

Data#3 is Australia’s largest domestic IT services and solutions provider and we believe it is the best way to play cloud adoption in the Australian market. The digitalisation of the enterprise and government sector is still in its early stage meaning this cycle has a long way to play out.

While Covid lock-downs likely slowed some near term project work, there is little doubt the epidemic will accelerate digital transformation spending in the next year or two.

Uniti Wireless (ASX:UWL)

  • $1.74 per share

Jun Bei Liu, portfolio manager, Tribeca Investment Partners:

Uniti Wireless has consolidated the largest residential private fibre network in Australia behind the NBN. This portfolio of Fibre To The Premise (FTTP) connections provides recurring, long duration cashflows with infrastructure-like characteristics.

We believe these assets are highly strategic and the unique nature of them make Uniti a top pick for a takeover target in 2021.

Asian technology companies (ASX:ASIA)

  • $11.04 per unit via BetaShares Asia Technology Tigers ETF

Alex Vynokour, CEO, BetaShares:

Asian technology companies offer investors exposure to two of the strongest global investment themes at the moment: the rapid rise of Asia and the ongoing technology boom.

The broad Asian region – covering such dynamic economies as China, Taiwan, South Korea and India - remains one of the most rapidly-developing economic regions in the world… In fact, Asia has some of the largest technology companies in the world, including Alibaba, Tencent and Samsung Electronics.

Reflecting these dual tailwinds, the Asian technology sector has delivered strong returns to investors in recent years. And with expectations of a rebound in the global economy in 2021, and potential easing of trade tensions under a new US President, in our view the sector is well-placed to continue to perform.

Aussie tech companies (ASX: ATEC)

  • $22.95 per unit via BetaShares S&P/ASX Australian Technology ETF

Alex Vynokour, CEO, BetaShares:

Although still a relatively small part of the local stock market, Australia has managed to develop its own thriving group of tech-related companies in recent years. Some local internet upstarts include carsales.com, WebJet, Realestate.com.au, and Afterpay, as well as Xero and WiseTech Global.

The BetaShares S&P/ASX Australian Technology ETF aims to track the performance of the recently created S&P/ASX Technology Index (before fees and expenses), which includes companies from a range of tech-related local market segments such as information technology, consumer electronics, online retail and medical technology.

As a group, companies covered by the S&P/ASX All Technology Index have delivered strong investment returns in recent years.

As our economy recovers from the Covid crisis, and with the structural tailwinds favouring the digital economy expected to remain in place, the local tech sector could continue to perform well in 2021.

Some comments have been lightly edited for brevity.

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