Don't Underestimate This Stock in 2021 — New Year Prediction

Happy New Year, folks!

We made it. And while what transpires between December 31 and January 1 each year doesn’t change much in reality, it does offer us a chance to hit the reset button metaphorically.

Sometimes that’s all we need, right?

And to kick off 2021 in good spirits, I have my first prediction of the year.

Let’s jump right in.

The advanced technologies of today and tomorrow are rewriting the very basic ways in which every industry operates.

As time passes, it’s only inevitable that these changes will accelerate.

To stay competitive and rewarding for shareholders in this new landscape, companies must remain adaptive and nimble. That requires spending a lot of time searching for the latest and greatest innovations, strategies, and systems.

As investors, we need to stay on top of these new developments to know which companies offer the best chance to create strong, profitable positions in the market. To do that, we need to look for companies that are positioning themselves ahead of the curve with this new technological revolution on hand.

But it may surprise you which firms are on the short list.

Industrial Automation Will Be a Key Sector in 2021

There are many ways a company can use advanced technology to achieve new efficiencies and profitability. One of the most immediately impactful and useful applications of advanced tech is in the advanced automated systems and solutions industry.

With a vaccine rollout now underway and a strong belief that the wheels of our economy will churn full steam ahead again soon, I believe we’re going to see a significant rise in profitable opportunities in organizations that help other companies gain an edge with automated solutions.

Some of these changes you’ll notice.

Post-COVID, you’ll be able to drive to the Grand Canyon on a highway built by large-scale autonomous excavators, bulldozers, and satellite-connected grids. When you get back to your hotel later that night, you can have your robot bartender mix you a cocktail as you get ready for dinner.

Automation in some of its finest forms.

Of course, there will be many other ways automated solutions disrupt industries that you will not notice, but these heavy lifters will offer some of the best profit chances.

Which leads me to one company I think will have a great 2021, thanks to the way it is positioned in advanced automated solutions.

Don’t Underestimate This Stock’s Potential

Dell Technologies (NYSE: DELL) develops data storage, virtualization, analytics, cloud computing and other advanced automated solutions that enable organizations to store, manage, protect, and analyze massive amounts of data at incredible speeds.

For example, the company’s Ansible plugin storage solutions deliver powerful automation that ends time-consuming repetitive tasks and frees up IT teams for more strategic work. In essence, the system automates storage administration for a growing list of integrated platforms, which allows clients to rapidly provision storage infrastructure with accuracy and respond to the fast-paced needs of clients.

Another innovative automated solution is the company’s container technologies, which tremendously increase speed, efficiency, and portability of application deployment. Currently, subsidiary Dell EMC is building CSI plugins for a growing list of storage platforms to enable new and legacy applications to be deployed in a containerized environment, which allows for an exceptionally wide range of applications across multiple industries. 

The company’s Dell EMC PowerStore solutions are its latest bell-cow offering. This technology offers clients adaptable infrastructure platform solutions that combine the advantages of cutting-edge storage hardware using flexible, intelligent automation and a data-centric design.

And demand for Dell’s solutions is high. As of November, the company has sold over 300 units in 40 countries.

The stock was on a tear this year already, but based on future trends and the outsize profits the new tech revolution in front of us promises, I believe this stock has a lot of room to grow. For example, the company only has a P/E ratio of 23 compared with direct competitor Microsoft (NASDAQ: MSFT) with its Azure automation solutions and a P/E ratio of 34.5.

Source: Stockcharts.com

Now we just need to wait for the proper entry point, and Dell Technologies could become one of our better-performing stocks of 2021.

More on that soon.

Have a great New Year’s Day.

To your wealth,

Sean McCloskey
Editor, Energy and Capital

@TheRL_McCloskey on Twitter

After spending 10 years in the consumer tech reporting and educational publishing industries, Sean has since redevoted himself to one of his original passions: identifying and cashing in on the most lucrative opportunities the market has to offer. As the former managing editor of multiple investment newsletters, he's covered virtually every sector of the market, ranging from energy and tech to gold and cannabis. Over the years, Sean has offered his followers the chance to score numerous triple-digit gains, and today he continues his mission to deliver followers the best chance to score big wins on Wall Street and beyond as an editor for Energy and Capital.