These Are John Buckingham’s Stock Picks For 2021

Tech wasn’t the only sector to benefit from the work-from-home trend. Buckingham noted that Target saw record online shopping numbers, while FedEx and shipping box maker International Paper benefited from increased e-commerce. Additionally, as people spent more time at home, they became more focused on the need for upgrades, boosting Lowe’s and home builder MDC Holdings.

The refinancing boom that struck early in the pandemic when rates were cut close to 0% resulted in sizable monthly savings for many borrowers. Buckingham said this freed up monthly income to spend on home furnishings, including for components made by Leggett & Platt. Automakers like General Motors also benefitted from the need for personal vehicles because less public transportation was available. He believes GM’s push toward electric and hybrid cars is permanent and will give suppliers like Corning a boost.

Small and mid-cap stocks

Buckingham also likes some small and mid-cap stocks, and he used the pandemic fallout to snap up stocks like Big Lots, lighting manufacturer Acuity Brands, and luxury department store Nordstrom. He likes Acuity because it manufactures virus-killing lights, which could do well as businesses get back up and running with more virus-related safety measures in place.

Buckingham likes small and mid-cap stocks for their enhanced upside potential and usually less expensive valuations. He noted that the second half of 2020 was better for smaller stocks, especially after the positive vaccine trials were announced in early November. Buckingham thinks the upswing for small and mid-cap stocks has only just begun.

Technology

He also likes 5G as a theme. Major telecom companies like AT&T and Verizon have been launching their 5G networks, while new 5G-capable phones come with chips made by Qualcomm. Apple and Alphabet should benefit from large numbers of people upgrading their devices for 5G. Buckingham also expects content providers like Viacom and Walt Disney to benefit because the faster speeds will enable them to reach more people.

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