5 Business Themes You Would Not Want to Miss In 2021

4 min read | December 30, 2020 10:24 PM AEDT | By Team Kalkine Media

The coronavirus pandemic has certainly changed the way we live today and has impacted the world significantly in many ways. Despite the carnage, there are some sectors that have outperformed the markets. As the Covid-19 vaccination programmes are underway in many countries, these sectors are expected to dominate the markets in 2021 as they did so far.

Investors having some amount of exposure in these themes of business would have certainly done well despite the global catastrophe caused by the pandemic. Most of the companies hailing from these sectors have yielded double-digit returns in recent times.

Gold

The precious metal broke the barrier of $2,000 per ounce in August and has rallied more than 24 per cent in a year’s time. Gold stocks often seem to resonate to Gold prices, although their price movements are also dependent on certain other factors.

Historical trends suggest that the Gold price usually goes up when the market is not performing well. Most of the investors balance out their portfolio by taking exposure in Gold related investments. Greatland Gold Plc (LON: GGP) has delivered a humongous price return of more than 1,940 per cent in a year’s time. Russia-based Gold miner Petropavlovsk Plc (LON:POG) has delivered a triple-digit return of 145 per cent in a year’s time.

Also read: Greatland Gold Gets Regulatory Approvals to Start Early Activities at Havieron Project

General Retailers

The general retailers have contributed immensely in making the lockdown successful by ensuring the undisrupted supply of goods and services. FTSE 100 listed leading supermarket chain Tesco Plc (LON: TSCO) has delivered a price return of 32 per cent over the period 2 years-to-date. Ocado Group Plc (LON: OCDO) and Kingfisher Plc (LON: KGF) have delivered a double-digit price return of 79 per cent and 25 per cent, respectively.

Technology

Globally, tech shares ruled the roost. Leading provider of antivirus software and security solutions Avast Plc (LON: AVST) has delivered more than 100 per cent price return, including dividends over the period 2 years-to-date (2 YTD Total Return). Another software and computer services company that specialises in enterprise level solutions such as ERP software for various industries, Aveva Group Plc (LON: AVV) has delivered more than 70 per cent price return including dividends over the period 2 years-to-date. Similarly, UK’s leading IT infrastructure provider Computacenter Plc (LON:CCC) shares have delivered a price return of more than 43 per cent in a year’s time.

Also Read: 5 Top Tech Stocks to Watch in 2021

Healthcare

This is one of the sectors that is always in demand despite the state of the economic cycle a country is going through. However, it is advisable to diversify your portfolio instead of putting all your money in a specific sector. Generic medicines provider, Hikma Pharmaceuticals Plc (LON: HIK) has delivered more than 52 per cent price return, including dividends over the period 2 years-to-date (2 YTD Total Return). FTSE 100 listed British drugmaker AstraZeneca Plc (LON: AZN), the frontrunner in development of Covid-19 vaccine, has delivered more than 35 per cent price return, including dividends over the period 2 years-to-date.

Utilities

The basic amenities such as water, sewage services, electricity are must for all. The requirement of these utilities has gone up during the peak of the unprecedented crisis. FTSE 100 listed energy company SSE Plc (LON: SSE) shares have delivered more than 66 per cent price return, including dividends over the period 2 years-to-date. Severn Trent Plc (LON: SVT), wastewater management company, has delivered 2 YTD Total Return of more than 41 per cent. Another FTSE 100 listed wastewater management company, United Utilities Group Plc (LON: UU.) has delivered 2 YTD Total Return of more than 38 per cent.

Stocks mentioned here are not recommendation, they have been cited to show the individual performance. Investing in any of them requires thorough research and analysis or professional advice.

 


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