With interest rates remaining at near-zero levels, supportive government policies have been driving the growth prospects of several companies. As such, we think it could be wise to bet on Regeneron (NASDAQ:REGN), Energy (ET), Teradata (TDC) and Alkermes (NASDAQ:ALKS) because they possess solid growth attributes and have immense upside potential. Read on.Growth stocks, particularly those from the technology sector, did not make a great start to 2021 as investors rotated away from expensive growth stocks to quality cyclical stocks to capitalize on the economic recovery. However, investors’ interest in quality growth stocks has been growing lately, with the expectation that supportive fiscal and monetary policies will help them achieve solid growth in the coming quarters. This sentiment is evident in the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 4.9% returns over the past month versus the SPDR Portfolio S&P 500 Value ETF’s (SPYV) 1.7% loss and the SPDR S&P 500 Trust ETF’s (SPY) 1.4% gain over the same period.
Even though the Federal Reserve signaled that at least two interest rate hikes are expected in late 2023, current interest rates have been left at near-zero levels. Moreover, jobless claims continued to fall this week and the U.S. real GDP is expected to rise 9% in the second quarter. These factors should bode well for stocks that possess solid growth attributes.
So, we think it could be wise to bet on red-hot growth stocks Regeneron Pharmaceuticals, Inc. (REGN), Energy Transfer LP (NYSE:ET), Teradata Corporation (NYSE:TDC) and Alkermes plc (ALKS). They have rallied over the past few months and hold immense upside potential.