The U.S. economy is rebounding faster than expected, and the recent passage of a whopping infrastructure spending bill is expected to boost its recovery further. Also, the U.S. unemployment rate is declining gradually. In addition, the Fed intends to be patient regarding interest rate hikes. Given this backdrop, we think under-the-radar stocks Heidrick & Struggles (HSII) and Natus (NTUS) could be worth betting on now.Equity market benchmarks ended their record rally yesterday, with the S&P 500 and the Dow declining by 0.8% and 0.7%, respectively, due to a 6.2% annual rise in the Consumer Price Index (CPI). Nonetheless, the United States is recovering faster than expected, driven by favorable policies. The labor market is getting back on track as evidenced by reported gains in broad-based payroll numbers. Furthermore, the unemployment rate declined to 4.6%, with non-farm payrolls increasing by 531,000 last month.
Despite a push for interest rate hikes, the Fed intends to be patient. Meanwhile, the U.S. Congress passed the $1 trillion infrastructure bill last week and plans to work on a broader social spending bill next. This is expected to boost the overall U.S economy even more.
Given the solid economic backdrop, we think under-the-radar stocks Heidrick & Struggles International, Inc. (HSII) and Natus Medical Incorporated (NTUS) could be solid bets now.