Top stocks to watch in October 2021

Summer is over and the winter season is approaching, so here are our top stock picks for October 2021.
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4 min read
Numbers

Summer has come to an end and with winter approaching, here are our top stock picks for companies that are well-positioned to make the most of the Christmas holiday season.

The companies picked out this time have a focus on e-commerce, with Etsy and Apple both well-positioned for selling lots of products on the run-up to Christmas. Also picked out is Netflix, which will no doubt enjoy increased subscribers and subscriber engagement over winter as people spend more time indoors (as the weather is cold outside!).

All of the choices in this article are companies that have been fairly sheltered from the effects of the pandemic, since are all online based (Apple also offers a physical store presence). Therefore, the pandemic may have actually benefited these companies, putting them in a strong position now.

Etsy Inc

Etsy is an online marketplace platform currently in the top 5 largest e-commerce platforms in the US alone. The platform has a general focus on handmade products but as a whole more and more different products are becoming available for sale on Etsy.

Etsy has huge growth potential globally. While e-commerce is a crowded market, Etsy is already a fairly established player and is well-positioned for quick-paced growth. As the Christmas season approaches it is always a good time of year for e-commerce, and Etsy has faired well during the pandemic since it is an online only platform and has little operating expenses.

Our opinion:

Etsy is a great stock to hold for the long term. It is well-positioned to expand globally and has proven consistently it can continue to grow its platform.

  • Over 5 million sellers on the platform.
  • Q2 marketplace revenue: $395.5 billion.
  • Q2 seller services revenue: $133.4 billion.
  • Overall Q2 revenue: $528.9 million, up 23.4% over the last year.
  • Ended Q2 with $2.5 billion in cash and short-term investments.
  • Q2 profit: $879.1 million.

Netflix Inc

Netflix is very well known in the streaming and content industry. At this point, Netflix certainly has established its place in the industry. It consistently grows its subscriber base and has been pushing further into creating more ‘Netflix Originals’.

Netflix also recognises gaming as an important industry, a market which they are attempting to enter, further expanding the offering for Netflix subscribers. Games will be included to subscribers at no additional cost, with an initial focus on mobile games.

Netflix certianly cements its position as a streaming giant because of its exclusive shows that cannot be streamed anywhere else. So far there have been many successful and wildly popular Netflix Originals. One of which is Sex Education, which has just seen its third season release.

Our opinion:

Netflix is a great stock to hold long term – as long as Netflix keeps producing new originals they will remain well-positioned in the industry. They have the advantage of having a recurring revenue stream via subscribers and if Netflix keeps expanding there is no doubt subscriber numbers will continue to rise.

  • 1.54 million paid subscribers.
  • Q2 revenue: $7.34 billion.
  • Spent $8 billion on content in the first half of the year.

Apple Inc

For quite some time now Apple has been smashing new records with their quarterly results and they don’t appear to be slowing down.

Apple has only just released their latest products, including the iPhone 13 and the new design iPad Mini. Apple is a hugely popular and generally well-liked company in the tech industry and over time they have proven year on year they can continue to grow their earnings in almost every product category. For example, in the latest earnings report, iPhone revenue alone increased by 65% and the iPhone is already a well-established product.

You can read about all of the announcements from the latest Apple Event here:

With Apple’s latest push into home products like the HomePod Mini and wearables such as the wildly popular Apple Watch, there is no doubt that Apple can successfully push into new products in the future. They are rumoured to be working on augmented reality products such as ‘Apple Glasses’ and even rumoured to be working on an ‘Apple Car’.

Our opinion:

Apple is a fantastic stock to hold long term, they have consistently proven they can innovate and break records on their results year after year. Apple has been successfully diversifying their business into services also, making the company as a whole is extremely attractive as a long term investment.

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