Which Megatrends Have The Hottest Trending Stocks?

When looking for stocks that will continue to perform in 2021, we can look at the megatrends that will continue to grow considering the pandemic will be in the rear-view mirror.

On top of the list of trends is blockchain technology-and alternative currency.

With bitcoin above 52k and stocks like Riot Blockchain (RIOT), Canaan (CAN), MicroStrategy (MSTR), PayPal (PYPL), Microsoft (MSFT) and others jumping on the blockchain bandwagon, this trend will continue to change the landscape.

In almost every industry, having a system that is transparent and as a decentralized database where all transactions are stored, many industries could benefit from blockchain.

Not controlled by a central authority, its popularity and usefulness will grow.

Data collection also continues to grow.

Although it overlaps with blockchain technology, real-time processing using the cloud and digital channels make data collecting much more insightful and useful.

The hybrid cloud combines a private and public cloud which makes companies feel more secure.

Amazon and Microsoft are 2 that offer these types of services.

Large organizations will be buying and selling more data as time goes on.

This is already a huge trend in China.

Other notable companies in this space include Datadog (DDOG), Zendesk (ZEN), PayPal, and Cloudflare (NET).

However, while these companies are in megatrend territory, technical analysis is critical as all these stocks have dropped 20-40% from their highs.

If the rates hold steady as the cost of capital rises with yields, then these could start moving up again.

It would also behoove investors to look at the 200-day moving averages on most of these names as the risk point though a break below could get costly.

Another megatrend is alternative energy and EVs.

Because of this, I am watching electricity distribution very carefully.

With predictions of demand expected to double at least, finding companies that are working on distributing electricity is another big area to watch.

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