A rebounding economy and strong earnings growth this year have driven the market to new highs. While this high growth isn't expected to continue for the broad market, there are still some great stocks with massive growth potential. This includes buy-rated stocks such as Westlake Chemical Corporation (NYSE:WLK), ArcelorMittal (NYSE:MT), and Sanderson Farms , Inc. (NASDAQ:SAFM).While the economic rebound has helped propel the market over the last year, there's no question, continued broad-based earnings gains have kept the party going. According to Factset data through November 19th, the third quarter blended earnings growth rate for the S&P 500 is 39.6%, which would mark the third-highest year-over-year rate since 2010.
This followed the second quarter's 90.9% growth rate, the highest ever, and the first quarter's 50.3% growth rate. Growth is expected to continue, albeit at lower rates. This is because much of this year's growth is a reflection of how growth fell in the previous year due to the unique circumstances of the pandemic.
However, we have entered a new economy where market leaders will be determined by new demand, especially from companies that prosper in a growing economy. So, if investors want to continue finding companies with robust growth potential, they must look at companies with a high forecasted five-year growth rate. Westlake Chemical Corporation (WLK), ArcelorMittal (MT), and Sanderson Farms, Inc. (SAFM) are three that fit the bill.