Growth stocks have lately been increasingly attracting the attention of investors, and the continuation of the near-zero interest rate environment should further fuel the growth of many growth companies. POSCO (NYSE:PKX) and GeoPark (NYSE:GPRK) possess solid growth attributes. So, we think it could be wise to scoop up their shares now. So, let’s examine these names.Investors rotated away from expensive growth stocks earlier this year, but these stocks have again been attracting investors’ attention lately as the major stock market indexes hover near their all-time highs. This is evidenced by the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 13.1% returns over the past three months compared to the SPDR Portfolio S&P 500 Value ETF’s (SPYV) and the SPDR S&P 500 Trust ETF’s (SPY) 0.7% and 7.1% gains, respectively.
While two interest rate hikes are expected in early 2023, interest rates continue to be held near zero for now. So, the availability of cheap money should keep driving the growth of several companies. Furthermore, there has been a substantial decline in the unemployment rate, and the Conference Board expects the U.S. real GDP growth to rise to 7% in the third quarter.
So, we think it could be wise to bet on red-hot stocks POSCO (PKX) and GeoPark Limited (GPRK) that have solid growth prospects. In addition, our proprietary POWR Ratings system has rated these stocks A for Growth along with an overall Strong Buy or Buy rating.