Technical indicators say these 9 growth stocks have upside in 2021, Fundstrat says
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Matthew Fox
Dec 2, 2020, 02:56 IST
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., March 17, 2020.Lucas Jackson/Reuters
Despite November's strong outperformance of value over growth, "growth stocks are not dead," Fundstrat's technical analyst Robert Sluymer declared in a note on Tuesday.
Growth stocks have further upside into 2021 as they begin to break out of a range of sideways consolidation, according to Sluymer.
Here are the 9 growth stocks investors should consider buying heading into 2021, according to Fundstrat.
Following years of underperformance, value stocks posted a significant rebound over growth stocks in November as positive COVID-19 vaccine news led investors to begin buying the beaten down reopening trade, or stocks best poised to recover from a reopening of the economy.
But despite the strong showing for value stocks last month, "growth stocks are not dead nor are they completing longer-term tops," Fundstrat's technical analyst Robert Sluymer said in a note on Tuesday.
Instead, growth stocks are consolidating sideways and digesting their gains after reaching overbought levels following a strong multi-month rally amid the COVID-19 pandemic.
With many growth stocks stabilizing near their 200-day moving average and putting in signs of a bottom or potential breakout above consolidation ranges, Sluymer highlighted 9 stocks to consider buying into 2021.
Here are 9 growth stocks that have further upside potential into 2021, according to Fundstrat.
"Similar to ADI, KEYS is early in a new upcycle after breaking out of its 2019-2020 trading range," Sluymer said.
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