The recent FDA approval of the first COVID-19 vaccine, along with reports indicating a robust GDP growth rate, make the backdrop favorable for growth stocks. Therefore, we think it could be wise for investors to bet now on shares of ON Semiconductor (ON), Dillard’s (DDS), and COHU Inc. (COHU), each of which possesses solid growth attributes. Read on.Increasing COVID-19 cases due to the fast-spreading Delta variant, rising inflationary pressure, and continued geopolitical tensions related to the government's collapse in Afghanistan have heightened investors’ anxiety over the past few weeks. Consequently, many investors are shifting their focus to quality growth stocks to dodge short-term market fluctuations and benefit from these businesses’ impressive long-term growth prospects. This is evident in the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 14.3% returns over the past three months.
The FDA’s full approval of Pfizer (NYSE:PFE) and BioNTech’s (BNTX) COVID-19 vaccine propelled stocks to close higher yesterday. Furthermore, according to Ataman Ozyildirim, Senior Director of Economic Research at the Conference Board, the real GDP growth for 2021 could reach 6% year-over-year. These factors could bode well for already well-performing growth stocks.
So, we think the shares of ON Semiconductor Corporation (ON), Dillard’s Inc. (DDS), and Cohu Inc. (NASDAQ:COHU)—companies that possess solid growth attributes—could be ideal bets now.