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After registering the first weekly decline in three weeks, the S&P 500 showed strength to start the new week and hit a new peak on a vaccine boost. The FDA granted full approval of a COVID-19 vaccine made by Pfizer (PFE - Free Report) and BioNTech. The vaccine had been under an emergency use authorization since December, but the full approval will help squash the ongoing surge in the COVID-19 Delta variant and lead to a continued reopening of the economy.

Further, strong corporate profit growth and a new infrastructure package have been powering the rally. The Q2 earnings picture has been one of all-around strength, with aggregate total quarterly earnings on track to reach a new all-time record and impressive momentum on the revenue side.

The U.S. economy returned to the pre-pandemic level with the GDP rising 6.5% annually in the second quarter, indicating a sustained recovery from the pandemic recession. Rapid vaccination, business reopening and trillions of dollars of government stimulus spending will continue to power consumer spending and result in robust growth.

The rally came in the face of surging cases of the Delta variant of COVID-19 and Fed’s tapering signals. According to the latest CDC data, the United States reported more than 900,000 COVID-19 cases last week for the first time since February. The seven-day average of new daily cases is 130,218, according to the Washington Post tracker. New cases have risen 16.8% in the past week, while deaths have climbed by 23.6% and hospitalizations by 14.9%.

Rising infections have led to concerns about slowing global economic recovery, weighing on investors’ sentiment. Meanwhile, the Fed is planning to scale back its massive monthly bond purchases before the end of the year.

That said, we have highlighted five stocks in the S&P 500 that led the market higher over the past week amid the uncertainty. These stocks have a solid Zacks Rank #1 (Strong Buy) or 2 (Buy) and will continue to outperform in the weeks ahead given their superior fundamentals. 

The Kroger Co. (KR - Free Report) – Up 9.6%

It is one of the largest retailers in the United States and operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. It saw a positive earnings estimate revision of 12 cents over the past 60 days for fiscal year (ending January 2022). The stock has a Zacks Rank #2 and VGM Score of A.

Regeneron Pharmaceuticals Inc. (REGN - Free Report) – Up 6.2%

This biotechnology company is focused on the discovery, development and commercialization of treatments targeting serious medical conditions. It saw a positive earnings estimate revision of $4.19 over the past 30 days for this year with estimated growth of 72.1%. The stock has a Zacks Rank #1.

The TJX Companies Inc. (TJX - Free Report) – Up 5%

This company is a leading off-price retailer of apparel and home fashions in the United States and worldwide. The stock saw solid earnings estimate revision of 28 cents over the past 30 days for the fiscal year (ending January 2022) with estimated growth of 832.3%. It has a Zacks Rank #1 and Growth Score of A.

Intuitive Surgical Inc. (ISRG - Free Report) – Up 4.1%

This company designs, manufactures and markets the da Vinci surgical system and related instruments and accessories, which is an advanced robot-assisted surgical system. The stock saw solid earnings estimate revision of 25 cents over the past 30 days for this year and has estimated growth of 44.9%. Intuitive Surgical has a Zacks Rank #2.

Microsoft Corporation (MSFT - Free Report) – Up 3.9%

It is one of the largest broad-based technology providers in the world. The stock saw a positive earnings estimate revision of 30 cents over the past 30 days for the fiscal year (ending June 2022) and has estimated growth of 8%. It has a Zacks Rank #2.