5 Growth Stocks With Tailwinds

These are exciting times to be investing in the stock market.

We have a new presidency that is expected to change the government’s stand on a large number of things including tech regulation, taxes, the China standoff, immigration, and the environment, to name just a few, off the top of my head. That means much more than just the broader economy waking up after vaccination.

Then we have the vaccination itself, which should reach more people once the initial hiccups in distribution get ironed out, expected in the second half of the year. And once that happens, we will see a boom.

We have a really robust tech sector that should continue to expand despite whatever steps the government takes against the monopolistic practices of the large-cap leaders. Semis particularly, but also cloud and security will be going through the roof, as the work from home trend continues.

Add to that the record-low interest rates and record-high investor liquidity from increased savings and government stimulus. When coupled with the pent-up desire to go out and socialize at restaurants, theaters, entertainment parks, you name it, (which also means increased spending on clothes, accessories, shoes, etc), it looks like a solid spending environment.

And then there are stocks. With the market outlook being so great there’s no way investors are going to pass up the opportunity to ride the wave.

Which brings us to the question of stock picking. And of trying to figure out the best way to maximize your gains. Of course, there’s no one magic formula to doing this. And a lot depends on your age, your investment goals, your risk appetite, and the funds at your disposal. But given that you have a clear idea of all that, there are still thousands of stocks to choose from. So selecting the right one can be a daunting task.

At Zacks, we can make this task a bit easier with our stock and industry ranking systems. Because we’ve seen historically that stocks with a #1 (Strong Buy) or #2 (Buy) ranking that operate in the first 50% of 250+ Zacks-classified industries tend to do better than others. When you consider that about half a stock appreciation is related to the group that it’s in, this can be a great way to narrow down your choices.

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