The reopening economy and supportive fiscal and monetary policies have been driving the performance of some quality growth stocks despite investors’ sector rotation out of the growth class and other factors that are driving market volatility. Among examples of this are Hologic (NASDAQ:HOLX), EchoStar (SATS), and ArcBest (NASDAQ:ARCB), which Wall Street analysts expect to deliver solid returns in the near term given their high growth prospects. Thus, we think it could be wise to bet on these stocks now.The U.S. stock market has been volatile since the Federal Reserve’s comment last week that interest rate hikes could come as soon as 2023, after saying as recently as March that it saw no increases coming until at least 2024. With several stocks currently trading at sky-high valuations, investors are also anticipating a market correction. Against this backdrop, investors are turning to quality growth stocks because they are expected to generate market-beating returns over the long run, dodging the short-term fluctuations.
Investors’ relatively heightened interest in growth stocks is evidenced by the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 4.9% gains over the past month compared to the SPDR Portfolio S&P 500 Value ETF’s (SPYV) 2.9% loss. Growth stocks' performance also compares favorably with SPDR S&P 500 Trust ETF’s (SPY) 0.7% returns over the same period.
U.S. real GDP is expected to rise 9% in the second quarter of 2021, according to The Conference Board. This bodes well for stocks that possess solid growth attributes. So, we think it could be wise to bet on Hologic, Inc. (HOLX), EchoStar Corporation (SATS), and ArcBest Corporation (ARCB). These names have solid growth prospects. Indeed, Wall Street analysts expect the prices of these stocks to soar more than 35% in the near-term.