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The U.S.’ real gross domestic product (GDP) increased at a 6.5% annual rate in the second quarter of 2021, indicating a continuing economic recovery. In addition, government stimulus, including tax credits and loans to businesses and the Fed’s accommodative monetary policy, are buoying investor optimism about corporate performance and earnings. As a result, the economy is expected to continue growing in the second half of 2021.
Growth stocks with stable financials are expected to benefit significantly from the economic growth. However, market volatility, triggered primarily by the resurgence of COVID-19 cases, has lately caused a price dip in quality growth stocks Cognizant Technology Solutions Corporation (NASDAQ:CTSH) and Incyte Corporation (INCY). So, we think it could be wise to bet on them right now.
