Best Companies to Invest in – Beginner’s Guide 2021

Fact Checked by Gary McFarlane

What are the best companies to invest in? Keep reading this beginner’s guide as we reveal the top five tech companies in the stock market today. 

When it comes to tech stocks on the stock market today, investors have plenty of options. But how do you filter the good from the bad? Check out these top-rated five best companies to invest in in 2021. 

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Best Companies to Invest in – Top Five List

  1. Apple Inc. (NASDAQ: AAPL) – Up 9.35% in YTD Gains – Invest Now
  2. SoFi Technologies Inc. – (NASDAQ: SOFI) Up 55.49% in YTD Gains – Invest Now
  3. Alphabet Inc. (NASDAQ: GOOGL) – Up 58.10% in YTD Gains – Invest Now
  4. Taiwan Semiconductor Manufacturing Co. – (NYSE: TSM) Up 21.82% Year-Over-Year – Invest Now
  5. Semrush Holdings Inc. (NYSE: SEMR) – Up 96.52% in YTD Gains – Invest Now

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Best Companies to Invest in – Reviewed

1. Apple Inc. (NASDAQ: AAPL) – Up 9.35% in YTD Gains

Best Companies to invest in - AAPL

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Apple is one of the best tech companies to invest in right now. This tech giant has grown to be one of the largest blue-chip stocks on the NASDAQ exchange with a market cap of $2.34 trillion. It specializes in digital consumer products and cloud computing services. In fact, it is one of the world’s largest technology businesses in terms of sales, as well as one of the most valuable. Apple’s products and services are still very much intertwined in mainstream culture. 

Apple Stock Riding Bullish Fundamentals

Last week, on Monday the 11th of October 2021, Apple’s stock hit a new high. The tech stock reached $144.72 rising by 1.78% in the space of just one hour. With its stock price so high, investors are questioning how much room for growth the company still has. Moreover, with the new iPhone 13 models now on sale, market analysts are expecting record-high revenue growth by the end of Q4 2021. 

Apple recently announced that it will publish its earnings report for the fourth fiscal quarter of 2021 on Thursday 28th October 2021. According to an official Apple press release, in its Apple Reports Third Quarter Results it revealed that “The Company posted a June quarter record revenue of $81.4 billion, up 36 percent year over year, and quarterly earnings per diluted share of $1.30.” 

Apple’s CFO, Luca Maestri also said: 

“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices. We generated $21 billion of operating cash flow, returned nearly $29 billion to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans.”

So, is Apple one of the best companies to invest in? 

Firstly, Apple boasts unwavering loyalty from its vast pool of consumers. Needless to say, this steadfast loyalty is likely to play a key part in spurring further growth and sales. 

Moreover, Apple stands to be a huge player in modeling the development and rollout of 5G technology via its iPhones and iCloud services. Be sure to also read our best 5G stocks guide.  With this in mind, will you be adding Apple (NASDAQ: AAPL) to your investment portfolio today? 

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2. SoFi Technologies Inc. – (NASDAQ: SOFI) Up 55.49% in YTD Gains

Best Companies to Invest in - SOFI

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Sofi Technologies is a member-centric, digital financial services company allowing clients to borrow, hold, spend, invest their funds. Sofi Technologies operates via three segments which include: lending, its technology platform, and financial services. With SOFI stock currently riding an uptrend, most analysts consider this tech stock a good buying opportunity. Widespread appeal for the company’s services is continuing to grow. 

Further analysis of the SOFI stock

The company’s membership has more than doubled to 2.56 million, according to its most recent quarterly figures. The total services and products jumped 123 percent year-over-year. In addition, SoFi’s acquisition of Golden Pacific Bancorp may hasten the process of obtaining a national bank charter. 

SoFi will undoubtedly benefit from a national bank charter. This would allow the company’s most lucrative section, the lending platform, to grow significantly. As such, will you be investing in SOFI stock on the recent uptrend? 

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3. Alphabet Inc. (NASDAQ: GOOGL) – Up 58.10% in YTD Gains 

Best Companies to Invest in - GOOGL

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Another one of the best companies to invest in is Alphabet Inc. You’ll be more than familiar with this tech company’s services and products such as Google Search, YouTube, Google Cloud, Gmail, and more. Alphabet is having an exceptional year. Namely, GOOGL stock has grown by 58.10% year-to-date (YTD). Regardless, the tech giant is not winding down.  

In-depth analysis of GOOGL stock

Alphabet recently made headlines when it announced plans to deploy its own CPU chips in smartphones and Chromebook computers. This could work towards minimizing reliance on third-party components while also developing a more integrated tech ecosystem for users. 

Waymo, the company’s autonomous car initiative, is now available to the general public in San Francisco. In exchange for reviews, the company is providing free rides. In Phoenix, Waymo has about 300 self-driving vehicles on the road. If the test pilot proves to be a success, it could drive further growth. GOOGL currently has a market cap of $1.82 trillion and a P/E ratio of 29.59. 

Will you be adding GOOGL stock to your watchlist in light of recent developments?

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4. Taiwan Semiconductor Manufacturing Co. – (NYSE: TSM) Up 21.82% Year-Over-Year

Best Companies to Invest in - TSM

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As you can guess, Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is a manufacturer of semiconductors. It operates on a global scale, covering most of Asia, Europe, and North America, and produces over 10,000 items for more than 500 clients. TSM is a semiconductor manufacturer that makes the world’s smallest and most advanced chips for major companies like Apple and Qualcomm.

More analysis on TSM stocks

TSM’s revenue increased by 17.5 percent in the past year to $4.5 billion. According to the Wall Street Journal, the tech company also intends to increase prices by 10%. TSM is reportedly proposing to develop a new facility in Kaohsiung, Taiwan. This is yet another indication of the company’s future growth potential. 

Taiwan Semiconductor Manufacturing Co. currently has a market cap of $528.58 billion and a P/E ratio of 28.67. It also has a dividend yield of 1.71%. Will you be investing in TSM stock before the end of the next fiscal quarter?

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5. Semrush Holdings Inc. (NYSE: SEMR) – Up 96.52% in YTD Gains

Best Companies to Invest in - SEMR

68% of retail investor accounts lose money when trading CFDs with this provider.

Next up, Semrush Holdings Inc. is a technology company that offers tools for online marketing. The company was launched in 2008 as a single-point solution for SEO marketing. Since then, it has grown to provide a wide range of marketing services. 

If you’re starting a new business, Semrush’s services could help you build a better relationship with your potential clients. After all, you’ll need to grasp these online marketing strategies to get your products and services out there if you want to succeed in today’s digital environment.

In-depth analysis of SEMR stock

The company’s revenue increased by 58 percent year over year to $45 million in the most recent quarter. Furthermore, according to Semrush, the upward trend will continue in the current quarter. Moreover, the firm continued to offer services that its core customers had a demand for. It is clear that the company has evolved from a point solution to a cutting-edge platform. 

SEMR is currently trading at $22.05 per share, giving it a market capitalization of $2.99 billion.

Would now be a good time to buy SEMR stock at a discount, given its recent downturn? 

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Are Company Stocks a Good Investment?  

The stock market has generated significant returns over the past few years. On average, the FTSE 100 – which consists of the 100 largest UK publicly-listed companies – has amassed an annualized total return of 7.75% between 1984 and 2019.

Best Companies to Invest in - FTSE 100

Nevertheless, the stock market is known for its market volatility. Some of those market downtrends can feel discouraging, and that level of risk is beyond some investors’ tolerance. However, if you can manage your emotions, stocks can generate considerably higher profits than other financial instruments. Stocks can be great long-term investments. 

Best Companies to Invest in – Pros and Cons

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Pros

  • Stock trading gives you the ability to earn higher potential returns in comparison to other investment vehicles such as ETFs, corporate and government bonds, futures, and commodities CFDs. 
  • Hedge against inflation as returns from stock investments typically offset inflation rates.
  • You can earn a regular flow of passive income via dividend payouts, and dividend-paying stocks
  • Some of the best stock brokers, like eToro, support fractional share trading, meaning you can take ownership of a portion of the best companies out there. 
  • The stock markets have high daily trading volumes meaning you’ll have access to a more liquid investment making it easier to trade. 
  • By investing in a broad range of companies you can build a well-rounded, diversified portfolio covering various sectors
  • You don’t have to spend a fortune. Thanks to 0% commissions and fractional share trading offered by top-rated brokers like eToro, you can invest in the best companies with relatively small investments. 

Cons

  • The stock market is notoriously volatile at the best of times with some market analysts reporting that the US stock market contracts by 10% roughly every 12 months or so. 
  • Stock trading may not be ideal for investors in retirement or close to retirement as these investors need a fixed income rather than potential capital appreciation that stocks have to offer.
  • Researching the stock market, delving into fundamental and technical analysis is time-consuming and requires a lot of attention to detail.  

 

Best Companies to Invest in – Why Most Beginners Opt for eToro

Best Companies to Invest in with eToro

If you’re looking to buy stocks and invest in the best companies as listed above, you’ll need to choose a trusted stock trading platform. With this in mind, most beginner traders opt for the fully regulated broker eToro.

What is eToro?  

Launched in 2006, eToro has become one of the leading social trading platforms across the board. Boasting a client base of overeToro 20 million, eToro is becoming a household name across hundreds of countries. 

What fees and commissions does eToro charge? 

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One of eToro’s best selling points is that it facilitates stock and ETF trading on a commission-free basis. As well as being a global CFD and forex trading platform, you can diversify your portfolio with a range of stocks listed on 17 international exchanges. Furthermore, thanks to the fact that eToro supports fractional share trading, you can invest in the hottest companies, including FAANG stocks with just $50. 

In terms of non-trading fees, there are no deposit fees or account fees. On the flip side, there is a small $5 withdrawal fee and a $10 inactivity fee after 12 months of no login activity. 

What copy trading features does eToro offer? 

Best companies to invest in - eToro's copy trading offerings

As the name suggests, copy trading allows you to copy the trading strategies of other experienced investors with the click of a button. These features include CopyTrader and CopyPortfolios. Copy trading is a form of passive investing in that your portfolio will mimic and reflect the actions of another expert eToro investor. 

Is eToro safe? 

eToro is registered with the US FinCEN as a Money Services Business. Additionally, this social trading platform is regulated by several top-tier financial institutions including the UK’s Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC). 

Your funds (except for margin) will also be held in segregated bank accounts or in segregated accounts with another authorised firm which may be an affiliate company.

eToro Fees

Account fee None
Deposit fee None
Withdrawal fee $5
Cost to invest in AAPL 0% Commission
Minimum deposit $50
Payment methods E-wallets, bank transfers, credit/debit cards

Pros

  • Supports copy trading and social trading
  • Buy stocks via fractional share trading
  • Minimum deposit of just $50
  • 0% commission when trading stocks and ETFs 
  • Wide range of payment options

Cons

  • Small $5 withdrawal fee

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Best Companies to Invest in – How to Get Started with eToro

Step 1: Open an Account

Open an Online Trading Account

 

To begin, go to the eToro website and register an account. You’ll be prompted to input some personal information, including your name, home address, date of birth, and contact details. You’ll also need to pick a username and a secure password.

Step 2: Verify your Account

eToro verify

In keeping with strict KYC rules, you’ll need to verify your identity and address by uploading copies of your passport and a recent utility bill. The verification process is straightforward and fully digital, taking a matter of minutes to complete. You’ll then be notified when your account has been successfully verified. 

Step 3: Deposit Funds

Funding your eToro trading account is quick and easy. You can deposit funds using a broad range of payment methods including credit/debit cards, bank transfers, and e-wallets like PayPal, Skrill, and Neteller. 

The minimum deposit is just $50 and you won’t pay a penny in deposit fees. There is also a standard conversion fee of 0.5% or 50 pips if you deposit in anything other than US dollars. 

Step 4: Buy Shares with 0% Commission

Now you’re ready to search for the best companies to invest in and buy shares without paying a penny in commissions. If you already know which of the aforementioned companies you want to invest in, just type it into the search box at the top of the screen and hit the ‘TRADE’ button.

Search for GOOGL on eToro

In this example, we’re interested in buying Alphabet stock (NASDAQ: GOOGL).

After that, you’ll see an order box where you can specify the amount you want to buy. This is the amount of money in US dollars, not the number of individual shares. As previously stated, eToro allows you to acquire shares for as little as $50, so you don’t have to buy the entire stock. 

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Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

Best Companies to Invest in – Conclusion

As you’ll notice from our list of the best companies to invest in 2021, all are publicly traded US stocks. This is partly down to the US economy being the largest economy in the world, and its strong performance since the vaccination program was rolled out. Want to start investing in stocks but don’t know where to start? 

With eToro you can invest in fractional shares with just $50 and 0% commission. If diversifying your portfolio is your main priority then you’ll find heaps of stocks across 17 international exchanges. Alternatively, if you’re more of a passive investor then you can copy the trading strategies of other advanced traders from the comfort of your home. 

Follow the link below to sign up for a free eToro account today!

eToro – Best Stock Broker with Low Fees and 0% Commission on Stocks!

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Frequently Asked Questions on the Best Companies to Invest in 

What are the best companies to invest in?

What are the best small companies to invest in?

What US companies are the best to invest in 5G technology?

About Dassos Troullides PRO INVESTOR

Dassos Troullides is an experienced finance writer who specializes in CFD, stock, forex, and crypto trading. He uses his experience and time spent in the forex industry to simplify complex financial topics for easy, informative reading. Dassos also writes for TradingPlatforms.com, BuyShares.co.uk, LearnBonds.com, InsideBitcoins.com and ForexCrunch.com