15 Most Profitable US Stocks for 2020

15 Most Profitable US Stocks for 2020. In March 2020, stock markets around the world sank a lot. The S&P500 index, which reflects the overall dynamics of the 505 largest American companies, fell by 30%. But due to the efforts of the US Federal Reserve, expectations from vaccination, and economic recovery, US indices not only won back the fall but also updated historical highs.

The strongest growth was shown by the IT sector. Due to COVID-19, the demand for online services has increased, and this has helped technology corporations increase profits and attract new audiences. True, many analysts think that the IT sector is “overheated”, and some companies are greatly overvalued.

In this article, we talked about the best US stocks, in terms of profitability. The rating involves American companies with a capitalization of more than $ 60 billion.

15 Most Profitable US Stocks for 2020:

1. Tesla Inc

• Profitability for the year: 811,5%.
• Industry: automotive industry.
• Growth factors: The company’s inclusion in the S&P500 index thanks to four profitable quarters in a row. Optimistic expectations of investors who believe that Tesla will become the first mass supplier of electric cars.

This American company produces unmanned electric vehicles and environmentally friendly solutions for storing electricity: solar panels, solar tiles, backup home batteries.

2. Zoom Video Communications Inc

• Profitability for the year: 415,6%.
• Industry: IT-technologies.
• Growth factors: Due to the COVID-19 pandemic, the number of Zoom users in 2020 increased 30 times, and net profit increased 12 times.

Zoom – software for remote video communication. Users can hold online conferences, meetings, school classes, organize joint work remotely.

3. Square Inc

• Profitability for the year: 267,1%.
• Branch: Software.
• Growth factors: Demand for Square products. The growing popularity of the Cash App.

AN IT company that develops solutions for processing electronic payments. Square’s main product is the Square Register terminal. It helps entrepreneurs to receive payment from debit cards through a smartphone or tablet, without using cash register equipment.

The company also has a Cash App application, where users can transfer money to each other, buy cryptocurrency and securities.

4. Snap Inc

• Profitability for the year: 213,5%.
• Industry: IT-technologies.
• Growth Factors: Increased number of Snapchat users due to COVID-19 quarantine restrictions. Return advertisers to the purchase of ads in the mobile application. Snap Inc’s focus on developing technologies for viewing ads through augmented reality.

The company owns the Snapchat messenger, where you can exchange messages with attached photos or videos. The peculiarity of the application is that the messages are available to another user only for a while.

In addition, Snap Inc has other products: spectacles smart glasses, Bitmoji, and Zenly applications.

5. Nvidia Corp

• Profitability for the year: 117,1%.
• Industry: semiconductors.
• Growth factors: Increased demand for graphics cards and laptops during the pandemic. The growing popularity of the cloud gaming service GeForce NOW, which launches games remotely. Good financial balance.

The corporation that makes GPUs. Nvidia products are used in the video game industry, design, science, automotive industry.

6. PayPal

• Profitability for the year: 110,1%.
• Industry: payment systems.
• Growth factors: An increase in online purchases during the coronavirus pandemic and their payment through the PayPal system. Growth in the registration of new accounts.

One of the largest electronic payment systems through which you can pay bills, send and receive money. It operates in 202 countries, serving 325 million users.

7. AMD

• Profitability for the year: 98,4%.
• Industry: semiconductors.
• Growth factors: the company has successfully launched several technological innovations on the market. AMD products are cheaper than those of competitors who have ceased to cope with the increased demand for semiconductors.

AMD is an American manufacturer of products for computer computing and visualization. Makes chips, GPUs, motherboards, adapters, chipsets. Under the brand, Radeon produces drives and RAM.

AMD cooperates with HP, Dell, Acer, IBM, Nokia, AT&T, Ericsson, Siemens, Sony. The main competitors are Intel and Nvidia.

8. Uber Inc

• Profitability for the year: 76,4%.
• Branch: Software.
• Growth factors: Uber will save more than $ 100 million a year due to amendments to the labor law of California, which now allows not to register taxi drivers as employees.

Uber owns a mobile app for calling a taxi and delivering food. The application helps to find a car with a driver, tracking its path to the desired address.

9. Apple Inc

• Profitability for the year: 73,7%.
• Industry: IT-technologies.
• Growth factors: Apple beat analysts’ revenue expectations despite store closures due to COVID-19. Demand for the iPhone continues. Services App Store, Apple Music, Apple TV+ and iCloud showed record revenue.

An American corporation, manufacturer of smartphones, computers, tablets, and software for them. Apple was one of the first in the world to develop graphical interfaces for managing multitasking operating systems.

10. Qualcomm Inc

• Profitability for the year: 70,9%.
• Industry: telecommunication equipment.
• Growth factors: investors’ expectations from the transition of smartphones to the new 5G communication standard, for which Qualcomm is developing chips.

Qualcomm is developing technologies for the operation of wireless communications – GPS, WiFi, Bluetooth, 3G / 4G / 5G. In 2020, the company managed to make the cheapest chip to support 5G. This will help to produce smartphones with 5G no more than $ 300 apiece.

11. Amazon.com Inc

• Profitability for the year: 69,9%.
• Industry: online stores.
• Growth factors: Increased demand for buying goods online due to the coronavirus pandemic. Amazon Prime subscriber growth.

The largest company in the world in the e-commerce market. On the site, Amazon.com buys books, electronics, toys, food, clothing, household and sporting goods, pet products, tools, as well as movies and TV shows for viewing online.

12. Lam Research

• Profitability for the year: 69,7%.
• Industry: equipment for the production of electronics.
• Growth factors: revenue growth and net profit. Increasing demand for semiconductors.

This American corporation makes equipment that is used in the manufacture of microcircuits. Thanks to Lam Research, semiconductor manufacturers design microprocessors and other integrated circuits.

13. FedEx

• Profitability for the year: 68,8%.
• Branch: courier services.
• Growth factors: Increased demand for FedEx services due to the delivery of the coronavirus vaccine.

A logistics company from the United States, delivering postal items and goods around the world. FedEx has one of the largest fleets of cargo aircraft.

14. Deere&Co

• Profitability for the year: 66,7%.
• Industry: production of trucks.
• Growth factors: the company records good demand for its products by updating the trading line. Deere & Co has introduced a new strategy and will produce “smart equipment” that can be controlled remotely.

A machine-building company that makes heavy machinery for the agricultural, construction, and logging industries. Deere & Co produces tractors, combines, garden equipment, snow removal equipment, and John Deere engines.

15. Netflix Inc

• Profitability for the year: 54,8%.
• Industry: entertainment.
• Growth factors: during the quarantine, users began to watch more movies through Netflix – this helped the service to get new subscribers.

U.S. provider of streaming video content. Since 2013, Netflix has been making its own movies, series, and TV programs. The company’s platform has more than 180 million subscribers.