Big tech, pharma, banks and other trending stocks are always a hot topic in the investment markets.Millions of investors flock to stocks like Apple or Amazon and buy them to add to a diversified portfolio.Read on to find out why.
What are Trending Stocks?
Trending stocks are heavily traded company shares that are listed on public exchanges like the New York Stock Exchange (NYSE) or the Financial Times Stock Exchange (FTSE).The trend could be rising or falling, and the main characteristic of a trending stock is that it is so heavily traded that it moves the market.When Apple (AAPL) releases a new product, the share price can rise rapidly, so fast that it can lift the entire consumer technology sector on any given exchange where it is traded.This happened in 2020 when NASDAQ-listed Apple stocks rose to a record high ahead of the 5G iPhone 12 series of smartphones.
Where are trending stocks traded?
Stocks trend when there is strong demand, so they are usually found on the biggest exchanges in the world, like the FTSE, DAX, NYSE or Dow Jones.We’ve researched established online opinions to give you an overview of some of the top trending stocks in 2021.
Pharma stocks
The COVID-19 pandemic sent pharmaceutical stocks into the stratosphere. Companies which manufacture masks, gloves and other personal protection are strongly in demand.One of the top-selling stocks in this sector is Johnson and Johnson, which made $82.1 billion in revenue in 2019. Johnson and Johnson have entered the COVID-19 vaccination market with their own vaccine.The company is expected to beat its 2020 revenues based on the global and substantial demand for COVID vaccines. This may reflect in its earnings-per-share results.
Energy stocks
Unlike pharma stocks, overall, energy stocks suffered losses because the demand for crude oil plummeted during the pandemic.There are some exceptions, however.Baker Hughes Co, traded on the Dow Jones Index, has managed to retain value and grow based on its merger and acquisitions.Other energy stocks are expected to improve once the demand returns for fuel used in travel and transport.
Big tech stocks
Information technology is essential to our lives and that is reflected in the demand for big tech stocks.An enduring favourite is Apple, followed by Adobe, Cisco Systems and Spotify. These are all popular stock amongst US and worldwide investors.The tech sector of the S&P rose by 40 percent in 2020 because so many services went online as countries around the world went into lockdowns.
Bank and financial stocks
Bank stocks are often a staple in the classic diversified portfolio, and in recent years, some unusual companies are in demand.Silvergate Capital is one such company. Known as the crypto bank, the bank’s stock rose 148 percent after its IPO in 2019.In the broader financial sector, the PayPal payment platform sustains demand for its stocks.To conclude, trending stocks’ prices change all the time, depending on market volatility and trading volume. These drivers are often more intense during earnings season.
Company profiles
Below is an overview of the trending stocks mentioned in our blog.
PayPal
PayPal was founded in 1998 and went public in 2002, after which it was bought by eBay for $1.5 billion. In 2019, it ranked 204th on the Fortune 500 of the US’s largest companies.Number of employees: 21,800Industry: Financial services.Founders: Elon Musk, Ken Howery, Luke Nosek, Max Levchin, Peter Thiel, Yu Pan.Regions: Worldwide
Apple
Apple was founded in 1976 and is traded on the NASDAQ, Dow Jones and the S&P 500.Employees: 147,000Industry: Consumer electronicsFounders: Steve Jobs, Steve Wozniak, Ronald WayneRegions: Worldwide
Silvergate Capital
Silvergate Capital is a publicly-listed financial services company founded in 1987. It’s known as the crypto bank for its early adoption of cryptocurrency.Employees: 212Industry: Banking and payment servicesFounder: Dennis S. FrankRegions: US
Cisco Systems
Cisco Systems’ stock is traded on the Dow Jones Industrial Average and the S&P 500 Index.Employees: 75,900Industry: Information technologyFounders: Leonard Bosack, Sandy LernerRegions: Worldwide
Adobe
Adobe creates software for designers and office use. It was founded in 1982.Employees: 22,516Industry: Information technologyFounders: John Warnock, Charles GeschkeRegions: Worldwide
Spotify
Spotify is a music streaming service started by Daniel Ek in 2006. It has over 345 million monthly users and one of its subsidiaries is Tencent.Employees: 5,584Founder: Daniel Ek, Martin LorentzonIndustry: Audio streaming, information technologyRegions: Worldwide
Baker Hughes
Baker Hughes is an energy giant and one of the largest oil field services companies. It was founded in 1907.Employees: 60,000Founders: Howard Hughes Jr’s father Howard R. Hughes and Walter Benona SharpIndustry: EnergyRegions: Worldwide
