2 FTSE stocks that I believe will continue to flourish in 2021!

Jabran Khan details two of his FTSE top picks for 2021 after they performed well in 2020 despite the economic downturn and market crash.

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These two FTSE stocks flourished in 2020 and I believe they will continue to do so in 2021.

FTSE AIM opportunity for 2021

FTSE AIM incumbent Fevertree (LSE:FEVR) had an excellent 2020. I believe this could continue in 2021. The FEVR share price is currently trading over 150% higher than the peak of the 2020 market crash levels. As I write, shares are currently trading 72% higher than January 2020 levels at 2,400p per share.

Fevertree has strong liquidity and low debt, which has seen it through the pandemic. I believe this will also stand it in good stead for 2021. In the US and Europe, levels increased by nearly 40% as reported in a trading update in the summer. My confidence towards Fevertree is linked to its ambitious expansion plans in the US which are already well underway, based on sales levels reported last year. The pandemic has slowed progress but I still believe Fevertree could have another good year in 2021, which is why I rate it as a top FTSE AIM option.

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There are still risks involved. Its share price is at its highest level in over two years. There is a chance it may not rise too much further, or reach that previous high. In addition to this, overseas expansion is easier said than done. The pandemic has slowed and could even hinder progress longer term. If the hospitality industry remains closed due to the pandemic, this will also affect FEVR. 

Real estate is thriving

Tritax Big Box (LSE:BBOX) is a real estate investment trust (REIT) on the FTSE 250. It invests in and funds pre-let development of logistics facilities and real estate. I like BBOX for 2021 and beyond.

Logistics is a thriving market right now due to the boom in online ordering, e-commerce, and e-fulfilment. Furthermore, property stocks have enjoyed an upward boost recently due to vaccine development and a somewhat amicable conclusion to Brexit negotiations.

BBOX was established and profit-making prior to the pandemic. This is another reason I place it in my best shares to buy category. Q4 results announced last month were very positive. Record up-take of warehouse space was reported. In addition, BBOX collected 99% of its rent from its customers. This resulted in a 2020 overall rent collection figure of 99%, which is impressive.

Despite reaching its highest ever price right now, I think Tritax shares are still reasonably priced. After the market crash, shares were trading for just 105p per share. As I write this, I would pay 185p per share, which is a 76% increase. I believe this is one indicator of how well the FTSE 250 incumbent has navigated the downturn throughout 2020.

One of the main risks involved with BBOX is that of its footprint and profile. It does not possess a large footprint outside of the UK. This is unlike one of its peers, Segro. BBOX could be at the mercy of any further economic fluctuations in the UK. In addition to this, if the pandemic continues, spending habits could be affected meaning firms may not need as much warehousing space which could impact BBOX in 2021.

Other opportunities

I believe FEVR and BBOX are excellent opportunities right now. They both reside on my FTSE best stocks to buy now list. Here are some other options from that list for 2021 and beyond.

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Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended Fevertree Drinks and Tritax Big Box REIT. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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