2020 bordered on the paradoxical on Wall Street. It was understandable that while the tangible economy was down in the dumps because of the pandemic, shares of digitally focused businesses would outperform the average. Many of those stocks rose by triple-digit percentages as investors piled into companies that were benefiting from remote work and social distancing. But it remains to be seen how many of them will live up to their newfound sky-high price tags.
Headed into 2021, a dash of contrarian thinking is in order. Going against the grain and investing in less popular businesses requires patience, but it can lead to big payoffs. For those looking to get ahead of the crowd, my top five contrarian stocks for next year are Visa (NYSE: V), Comcast (NASDAQ: CMCSA), Marvell Technology (NASDAQ: MRVL), Hasbro (NASDAQ: HAS), and Skechers (NYSE: SKX).
With COVID-19 vaccines starting to become available, many investors think industries like travel, dining, and others that are reliant on in-person interaction are set for a big year. I agree.