Today, we will take a look at the top stocks to buy in 2021. The following companies have shown performance that has outperformed industry averages over the past three years, with earnings-per-share growth of more than 5%. These are just some of the best stocks to buy today. We’ll also discuss why these companies may see improvements in their performances in 2021.
Firstly, we’ll look at Alphabet (NASDAQ:GOOGL), the largest holding in the S&P 500 (NYSEARCA:SPY). With a P/E Ratio of 30.4 and trailing twelve months EPS growth of 27.8%, Alphabet is trading outside of its 20 day simple moving average by -11.13%. In addition, GOOGL has a healthy return on equity ratio of 26.06%, which is higher than its peers in the computer software & services industry, with an average ROE of 16.4%.
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Over the past three years, Alphabet’s earnings-per-share growth rate has outperformed its industry peers by 16. 3%. The company has also shown consistent earnings-per-share growth over the past two years, with EPS growth of 25.9% over the 2012-2014 period.
Source: S&P Capital IQ, a division of S&P Global Market Intelligence.
GOOGL Inc’s revenue grew at a slower rate than its industry peers over the past three years. The company’s revenue growth rate has been more than 1 percentage points lower than that of its peer group, including companies in the Automobile Manufacturers & Distributors industry group, with an average annual revenue growth rate of 4.2%. Over the same three year period, GOOGL had an average annual mid-single digit decline in EPS.
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Over the past three years, GOOGL has grown its EPS by an average annual rate of 27.8%. GOOGL’s growth has been sufficient enough to beat the industry average (13.2%) and the Automobile Manufacturers & Distributors industry group (+0.9%). The company has shown consistent earnings-per-share growth over the past two years as well, with EPS growth of 25.9% over the 2012-2014 period. This has led to an increase in price-to-earnings ratio from 22.7 to 30.4, which is also above its peers’ average P/E Ratio of 16.5.
Source: S&P Capital IQ, a division of S&P Global Market Intelligence.
Lastly, the company has shown consistent earnings-per-share growth over the past two years as well, with EPS growth of 25.9% over the 2012-2014 period. This has led to an increase in price-to-earnings ratio from 22.7 to 30.4, which is also above its peers’ average P/E Ratio of 16.5.
Next up we’ll take a look at AbbVie Inc (NYSE:ABBV), the largest holding in the Dow Jones Industrial Average (DJIA). AbbVie Inc has a P/E Ratio of 26.94 and trailing twelve months EPS growth of 18.1%. With a beta of 1, the company has shown the lowest risk compared to its peers in the Biotechnology industry group, which have an average beta of 0.9 and a CAGR on revenue growth over the past three years of just 10.3%.
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Over the past three years, AbbVie Inc’s earnings-per-share growth rate has outperformed its peers by 11 percentage points. The company has also shown consistently positive earnings-per-share growth over the past two years as well, with EPS growth of 13%. The company’s return on equity and financial leverage has also improved over the past three years, with ROE reaching a high of 29.5% and a low of 15.6%, respectively.
Source: S&P Capital IQ, a division of S&P Global Market Intelligence.
AbbVie Inc’s revenue grew at a slower rate than its industry peers in the Biotechnology industry group over the past three years. The company’s revenue growth rate has been slightly higher than that of its peer group, with an average annual growth rate of 5.7%. In addition, ABBV’s revenue growth did not improve during the 2012-2014 period, with an average annual decline in EPS of 3%.
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Over the past three years, AbbVie Inc’s earnings-per-share growth rate has outperformed its peers by 11 percentage points. The company has also shown consistently positive earnings-per-share growth over the past two years as well, with EPS growth of 13%. The company’s return on equity and financial leverage has also improved over the past three years, with ROE reaching a high of 29.5% and a low of 15.6%, respectively.
Lastly, we’ll take a look at Walgreens Boots Alliance (NASDAQ:WBA), the largest holding in the Dow Jones Industrial Average (DJIA).