Investors have been rotating away from expensive growth stocks and into reasonably priced cyclical stocks to capitalize the economic recovery. But we think Goldman Sachs (GS), Intuitive Surgical (NASDAQ:ISRG), Cognex (NASDAQ:CGNX), and Manpower (MAN) are established names that possess solid growth attributes and are well positioned to benefit from the economic recovery. So, it’s wise to bet on them now. Read on.While last year was dominated by high-growth tech stocks, the economic recovery this year has motivated investors to take profits in those stocks and rotate to much cheaper cyclical stocks to capitalize on the economic recovery. However, with accelerating economic recovery, a new set of growth stocks--including some of the pandemic winners--are now grabbing investors’ attention. The renewed investor interest in growth stocks is evidenced by the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 5% gains over the past month versus the SPDR Portfolio S&P 500 Value ETF’s (SPYV) 3.8% returns.
Not all stocks that advanced over the past several months are well positioned to continue growing with the economic recovery. So, it’s wise to take a close look at companies’ business models to ensure that there are sufficient opportunities for them to grow even absent pandemic tailwinds.
We think Goldman Sachs Group Inc. (NYSE:GS), Intuitive Surgical, Inc. (ISRG), Cognex Corporation (CGNX), and Manpower Group, Inc. (MAN) possess solid growth attributes and could deliver solid returns in the upcoming months.