5 Best Short-Term Stocks to Buy For 2021

Short-term stocks are a must-have for investors looking to maximize their returns within the shortest possible time.

One of the most important rules of investing is to understand the type of investor you are. Some people have no issues committing money and leaving it for the long term when they understand that there’s significant growth potential. Others want to get their returns as quickly as possible, and they capitalize on sharp gains.

For the second class of investors, short-term stocks are what provide this earning opportunity. They are quick and quite easy to spot, especially if you are familiar with the companies and the trends.

Below, we have some of the best short-term stocks for profit-minded investors to get one as they just might be about to take off.

1.) Salesforce Inc. (NYSE: CRM)

Salesforce Inc. is the world’s largest and most popular customer relations management (CRM) software. The company has solidified its palace as a big tech stock, although it has a bit of a long way to go to compete with the likes of Google and Apple.

Last year was impressive for Salesforce, especially as it was finally added to the Dow Jones Industrial Average. However, the cherry for the company was the acquisition of business communication tool Slack.

The deal, valued at about $27 billion, is expected to close in July. Slack has shown some strong numbers, reporting earlier this month that it has signed up 91, 000 customers to its Slack Connect product – up 23 percent from the January quarter.

Slack also reported earnings per share (EPS) of 8 cents on $273.,4 million in revenues – a year-on-year increase of 36 percent. Wall Street analysts expected $267.14 million in revenues. 13,000 new paid customers joined Slack in Q1, including 102 paid customers that will generate over $100,000 in annual recurring revenues. All in all, Slack ended Q1 with 169,000 total paid customers – up 39 percent year-on-year.

With the deal set to close soon, Salesforce will definitely see a bump from these new customers. The CRM stock has been steadily rising for a month, and it is only 4 percent off its yearly high of $251.31.

2.) Amazon (NYSE: AMZN)

Amazon remains the undisputed king of e-commerce in the United States. Coming off a spectacular year, there has been significant pressure on the company to continue delivering groundbreaking numbers.

The e-commerce giant did well in Q1, posting earnings of $15.79 per share on revenues of $108.5 billion for the quarter. Analysts had expected $9.54 in EPS on $104.5 billion in revenues. With 44 percent in revenue growth year-on-year, Amazon showed that it still holds the e-commerce game on lock.

When the company shared its Q1 earnings, Amazon stock jumped 3.4 percent to $3,590. The stock has since pulled back, bottoming out at $3,127 on May 11. Now that it stands at $3,346.83, the company seems to be gunning for its yearly high again.

The e-commerce giant definitely has a lot of room to grow. It is currently looking to tap into the public health market, with its Amazon Care telehealth pilot program expanding to all its U.S. employees and their families – as well as other companies – this year. Its Amazon Pharmacy prescription drug service is also available, offering Amazon Prime members up to 80 percent discounts on generic drugs and 40 percent discounts on brand medications.

Last month, Amazon acquired Metro-Goldwyn-Mayer studios for $8.45 billion. The company will look to enhance its position in move streaming with this offering.

3.) The Walt Disney Company (NYSE: DIS)

Disney is one of the global leaders in entertainment. While its digital services have propped its stock up, several other peripheral services are set to join in.

The coronavirus affected Diensy significantly, with its Disneyland and California Adventure theme parks being closed for most of 2020. However, the parks opened on April 30, allowing tourists once more. Disney cruises are also gearing up to sail once more.

Disney has also enjoyed success from its Disney+ streaming service. As of December, the service had 86.8 million subscribers – up from 73.7 million in early October. All of Disney’s streaming channels – including Disney+, Hulu, ESPN+, and Hotstar – now account for 137 million subscribers.

This year, Disney+ will enter several major markets – including South Korea, Eastern Europe, and Hong Kong. The company expects to have 230 million to 260 million subscribers by 2024 – up from initial estimates of 60 million to 90 million.

DIS is currently amid a recovery from its March fall. With a current price of $177.38, it looks poised to beat its yearly high of $202.89 soon.

4.) VISA Inc. (NYSE: V)

VISA is another company that looks set to see big gains in the coming months. Align with other payment processors, VISA saw a jump in its stock last year as the coronavirus accelerated the need for online payments.

Now that the world is slowly going back to its pre-pandemic ways, VISA could still jump even more. Stimulus checks are being paid and people are gearing up for a big summer of spending and relaxation. From shopping centers to restaurants and airline companies, spending is expected to go through the roof.

In April, VISA reported an EPS of $1.38 on $5.73 billion in revenues for its fiscal second quarter. This beat analysts’ expectations. The company’s service revenue grew by 8 percent to $2.8 billion, while data processing revenue grew 11 percent to $3 billion. Payments volumes also jumped by 11 percent, while total processed transaction figures by 8 percent to $37.6 billion.

Following a short consolidation, VISA stock appears ready to test its yearly high again. The stock currently trades at $234.96, just off a yearly high of $237.46.

5.) American Airlines Group Inc. (NASDAQ: AAL)

American Airlines is another company set to rebound as the world recovers from the pandemic. In April, the Centers for Disease Control and Prevention cleared fully vaccinated people to fly domestically without coronavirus testing or the need to quarantine – just as long as they wear masks and socially distance.

The European Union is also set to open major markets to leisure visitors from countries with high vaccination and low infection rates.

In its Q1 earnings report, American Airlines reported a net loss of $4.,32 per share while revenue dropped to $4 billion. While the bottom line beat analysts’ estimates, revenues were short. However, daily cash expenditures also dropped to $27 million. With travel coming back, increased activity should boost AAL and other airline stocks.

Where To Buy Short-Term Stocks

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