Sasha Jovanovic
5 min read
The Fed just kept rates at 3.75% to 4% and still sounds ready to tighten further, which puts quality growth stocks back under a very sharp spotlight. In a market where inflation worries, data surprises and policy twists can quickly punish weaker balance sheets, missing the more resilient stories can hurt. This article walks through three large-cap U.S. quality growth stocks exposed to this news backdrop and why they may be worth a closer look now.
The three quality growth stocks highlighted below are only a starter pack, and the full screen surfaced 47 more large-cap U.S. companies with similar balance sheet strength, profitability and growth characteristics that are not covered here. To identify, compare and analyze the ideas that best fit your own risk and return preferences, head straight to the Large-Cap U.S. Quality Growth Stocks screener.
Abbott Laboratories (ABT)
Abbott Laboratories fits this quality growth screen as a large, diversified healthcare group whose steady cash generation and balance sheet strength can matter more when higher rates test weaker players.
Abbott Laboratories develops and sells a wide range of pharmaceuticals, diagnostics, nutrition products and medical devices worldwide, with about US$19.4b of revenue from the United States, and the group carries a market value of roughly US$178.4b.
“Broader adoption of continuous glucose monitoring, including expected Centers for Medicare and Medicaid Services coverage for non insulin users that could open access to about 10 million additional Medicare beneficiaries, together with the planned U.S. launch of Libre Duo and further system integrations, can support higher CGM sensor volumes and contribute to top line growth.”
The key variable is how one pressure on future profitability interacts with the growth engine that investors are now watching so closely.
If that trade off between pressure and opportunity matters to you, read the full narrative for Abbott Laboratories to see how Abbott Laboratories’ growth engine could be decoupling from rate stress.
Accenture (ACN)
Accenture fits the Large-Cap U.S. Quality Growth Stocks theme as a global consulting and managed services heavyweight. Strong client relationships and recurring IT work make its role in corporate digital spending especially important when rates stay higher for longer.
Accenture provides consulting and managed services across AI, cloud, cybersecurity and operations, with around US$22.5b from Products, US$15.2b from Health & Public Service, US$14.0b from Financial Services, US$12.7b from Communications, Media & Technology and US$9.9b from Resources, and the stock carries a market value near US$138.9b.
