Technology sector growth stocks sold off earlier this year as investors rotated to reasonably priced stocks that are well positioned to gain with an economic recovery. However, amid a potentially rapid economic recovery, a new set of stocks has been emerging as potential growth stocks. Corning (GLW), Weyerhaeuser (WY), Tempur Sealy (NYSE:TPX), and Louisiana (LPX) possess solid growth attributes, and we think investors seeking to capitalize on those attributes should consider buying these names. Read on.Thanks to the COVID-19 pandemic, 2020 was a great year for growth stocks, particularly from the technology space. While the overvaluation of technology growth stocks led to a sell-off earlier this year given the emergence of opportunities to capitalize on the economic recovery, growth investing is by no means completely unattractive now.
Together with continued progress on the coronavirus vaccination front, President Joe Biden’s $1.9 trillion American Recovery Package and accommodative central bank monetary policy are priming the pump for a fast-paced U.S. economic recovery. This is is positioning many non-tech companies to grow significantly in the coming quarters. These stocks are the potential post-pandemic winners.
A renewed interest in growth stocks in the wake of the sell-off is evident in the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 8.2% gains over the past month versus the SPDR Portfolio S&P 500 Value ETF’s (SPYV) 0.9% returns. We think this trend makes a favorable investment case for Corning Incorporated (NYSE:GLW), Weyerhaeuser Company (NYSE:WY), Tempur Sealy International, Inc. (TPX), and Louisiana–Pacific Corporation (LPX) all of which possess solid growth attributes.