Growth stocks are gaining momentum amid bullish market sentiment and the Fed’s signal that it will keep supporting the economy for now. We believe the continuing low-interest-rate environment and ongoing economic recovery should propel growth stocks AstraZeneca (NASDAQ:AZN) and Gates Industrial Corporation (NYSE:GTES) to big price gains in the near term. Read on.The three main stock indexes closed sharply higher on Thursday for the second straight day, recovering from a selloff earlier this week. The bullishness suggests that investor fears surrounding the uptick in weekly jobless claims and Chinese real estate giant Evergrande’s debt crisis have subsided. Furthermore, the market received a boost from the Fed on Wednesday when the central bank signaled no immediate removal of support to the economy.
While the Fed signaled interest rate hikes in 2022, the interest rate environment remains unchanged for now. So, the availability of cheap money and the continued economic recovery should bode well for growth stocks.
Therefore, we think it could be wise to bet on cheap stocks AstraZeneca Plc (AZN) and Gates Industrial Corporation plc (GTES), which possess strong growth attributes. These stocks are rated ‘Strong Buy’ in our proprietary POWR Ratings system.