Here are some of RBC's top stock picks for 2021

Published Sat, Jan 9 20218:43 AM EST

(This story is for CNBC PRO subscribers only.) RBC outlined this week its top stock picks for 2021. The 30-stock list, comprised of global companies and updated on a quarterly basis, focuses on the firm's high-conviction long-term ideas. Names like AbbVie and Teladoc remain on the list, while Nike is among the newest additions. "Changes this quarter reflect a rotation out of companies that have seen strong performance and less upside, into names that have more attractive potential upside as the economic recovery progresses," the firm said in a note to clients. RBC opted to add Nike to the list based on the company's position as a "best-in-class global athletic play." The firm said the sports retailer is in the early days of its new digital-focused brand strategy, and pointed to production innovation supporting continued strength. RBC envisions Nike hitting $160, which is about 10% above where the stock currently trades. Dollar Tree is another new addition to the list. "We think Dollar Tree's value and convenience-based business model and heavy mix of consumables can help the company navigate economic deterioration better than most of the other companies in our coverage," RBC said. The discount retailer has attracted new customers amid the pandemic-induced downturn, and the firm believes momentum can continue. RBC's price target on the stock stands at $129, which is about 12% higher than where the stock last traded. General Electric and The Mosaic Company were also added to the list. When it comes to GE, RBC said the company's turnaround story will likely gain momentum in 2021 as the vaccine rollout boosts air travel. The firm said that cash flow is the "key metric" for investors to watch, and believes the stock is "significantly under-owned." Shares of the industrial giant are down about 6% over the last year, substantially underperforming the S & P 500, which has gained 17% in that time period. RBC's $13 target represents a 15% rally for the stock off current levels. Meanwhile, the firm said that Mosaic, which provides leverage to the potash and phosphate markets, is an "ideal investment in a commodity upside scenario." In addition to AbbVie and Teladoc, Twilio and Visa were among the names that remained on the list. Shares of Twilio are up 230% in the last year as users flocked to the platform amid the pandemic, but RBC believes there's still upside left for the stock. The firm said that Twilio is operating in an $87 billion market, with the company currently penetrating just 2% of that market. RBC noted the tech company's new product offerings, as well as its status as a potential acquisition target as catalysts that could drive the stock higher. RBC's $500 target is 40% above where the stock closed on Thursday. For Visa, RBC said that while the company will continue to feel the impacts of Covid, once the turnaround is underway Visa stands to benefit. "Visa's business model is such that, while we expect near term results to be hurt by the macro environment, we believe it should be among the first companies to benefit from a reacceleration in retail spending," the firm said. Companies removed from the list this quarter include Uber , McDonald's and PepsiCo . Pepsi was removed thanks to a downgrade by the analyst who covers the stock, while RBC nixed McDonald's based on better opportunities elsewhere. - CNBC's Michael Bloom contributed reporting.

Workers install a Nike logo lamp outside the Wukesong Arena in Beijing, August 28, 2019.

Tingshu Wang | Reuters

(This story is for CNBC PRO subscribers only.)

RBC outlined this week its top stock picks for 2021. The 30-stock list, comprised of global companies and updated on a quarterly basis, focuses on the firm's high-conviction long-term ideas. Names like AbbVie and Teladoc remain on the list, while Nike is among the newest additions.

"Changes this quarter reflect a rotation out of companies that have seen strong performance and less upside, into names that have more attractive potential upside as the economic recovery progresses," the firm said in a note to clients.