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2 Superstar Stocks for Your 401K

Published 08/20/2021, 12:19 PM
Updated 08/20/2021, 01:30 PM
© Reuters.  2 Superstar Stocks for Your 401K
CTAS
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INFY
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With the stock market racking up record highs this year, investors are diving in to grab any and every opportunity to capitalize on its momentum. There has also been a massive spike in workers' contributions to their 401K plans. So, to benefit from the market rally and to swell one’s 401(k) balance, we think winning stocks Infosys (NYSE:INFY) and Cintas (CTAS) could be great picks now. Let’s take a closer look.Many investors pulled money from the stock market last year on concerns over the pandemic-led recession. But as the economy recovers and stock market indexes are hitting their all-time highs, investors are unwilling to miss opportunities to capitalize on the momentum. According to the latest data from Fidelity Investments, even though people faced financial hardships over the past year due to the pandemic, retirement account balances have hit new highs. The average 401K plan balance climbed 24% year-over-year and hit $129,300 as of June 30, while individual retirement account balances increased by 21% from their year-ago value.

The S&P 500 doubled this month on a closing basis from its pandemic low on March 23, 2020. And this bull run is expected to continue for the foreseeable future owing to an improving job market, rising consumer spending, and continuing government efforts to increase COVID-19 vaccination rates.

So, we believe investors seeking to boost their 401(k) balances further could bet on Infosys Limited (INFY) and Cintas Corporation (NASDAQ:CTAS). These companies are fundamentally sound and exhibit strong growth attributes.

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