Amid the low-interest-rate environment, quality growth stocks are expected to generate market-beating returns as the economy is witnessing a fast-paced recovery. Large-cap stocks Intuitive Surgical (NASDAQ:ISRG), Illumina (NASDAQ:ILMN), and Edwards Lifesciences (EW) possess solid growth potential. So, it could be wise to bet on them now.Even though investors rotated away from expensive growth stocks earlier this year, select growth stocks have been experiencing strong rebounds and in some instances are making new highs. Investors’ interest in the large-cap growth stocks is evident from the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 7.5% returns over the past month and 11.8% returns over the past three months.
While two interest rate hikes are expected in late 2023, rates have been held near zero for now. This should benefit growth companies with their access to cheap capital. On the other hand, the economic recovery is creating new growth opportunities for these companies. According to The Conference Board, the United States’ real GDP is expected to grow 6.6% year-over-year this year.
Amid this favorable backdrop, it is wise to bet on large-cap quality stocks such as Intuitive Surgical, Inc. (ISRG), Illumina, Inc. (ILMN), and Edwards Lifesciences Corporation (NYSE:EW) that possess solid growth attributes.