Growth stocks have been witnessing increasing attention lately, despite investors’ concerns over the pace of economic recovery. The continuation of the near-zero interest rate environment should further fuel the business growth for several companies. ArcelorMittal (NYSE:MT), Ulta Beauty (NASDAQ:ULTA), Texas Roadhouse (NASDAQ:TXRH), and Sanderson Farms (NASDAQ:SAFM) possess solid growth attributes, and their earnings are expected to soar more than 50% per year over the next five years. So, it could be wise to scoop up their shares now.Even though a resurgence of COVID-19 cases and high inflation have been worrying investors about the pace of the economic recovery, growth stocks have been witnessing increased attention lately. This is evident from the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 11.3% return over the past three months compared to the SPDR Portfolio S&P 500 Value ETF (SPYV) and the SPDR S&P 500 Trust ETF’s (SPY) 1.4% loss and 5.1% gain, respectively.
While the Federal Reserve could raise interest rates as early 2023 and recently indicated its willingness to reduce asset purchases before the end of the year, rates have been kept near zero for now. In addition, Fed Chair Jerome Powell reiterated that high inflation is “temporary.” Moreover, there was a substantial decline in the unemployment rate. Also, the Conference Board expects the U.S. real GDP growth to rise to 7% in the third quarter.
So, it could be wise to bet on fundamentally sound stocks ArcelorMittal (MT), Ulta Beauty, Inc. (ULTA), Texas Roadhouse, Inc. (TXRH), and Sanderson Farms, Inc. (SAFM) that possess solid growth attributes. Their earnings are expected to increase at a rate of at least 50% per annum over the next five years.