Purchase 3 Major Growth Funds Amid Strong Recovery in Consumer Sentiment

Economic Outlook Remains Positive Despite Job Market Concerns

While many consumers are expressing worries about a more competitive job market, overall confidence in the economy’s direction is holding steady. A significant number of individuals anticipate that economic conditions will get better, suggesting that a recovery is underway.

This renewed sense of optimism contributed to a rise in consumer confidence during February. Additionally, the unemployment rate dipped in January, and there is growing expectation that inflation will become less of a concern in the near term.

Given these trends, large-cap growth funds such as Fidelity Contrafund (FCNTX), JPMorgan U.S. GARP Equity I (JPGSX), and T. Rowe Price Blue Chip Growth (TRBCX) are emerging as appealing investment opportunities.

Consumer Confidence on the Rise

According to the Conference Board, consumer confidence climbed by 2.2 points in February, reaching 91.2 compared to January’s revised figure of 89. The initial January reading of 84.5 was the lowest since May 2014, making February’s improvement—well above the anticipated 87—a notable rebound.

Although sentiment has not returned to its November 2024 high of 112.8, the upward movement is significant. The survey indicates that concerns about job availability remain, as 20.6% of respondents said jobs were “hard to get,” the highest rate since early 2021. However, optimism is growing, with 28% of households in February reporting that jobs were “plentiful,” up from 25.8% in January.

In addition, the unemployment rate decreased to 4.3% in January from 4.4% the previous month, supported by the creation of around 130,000 new jobs.

Further boosting sentiment, the University of Michigan’s Consumer Sentiment Index rose to 57.3 in February, up from 56.4 in January and marking the highest level since August 2025. Investors are increasingly hopeful that inflation will subside, which could further stimulate economic growth.

Short-term inflation expectations for the coming year dropped to 3.5% in February, the lowest in 13 months, down from 4% in January. Many investors also believe that the most severe impacts of President Donald Trump’s tariffs have passed, and conditions should gradually improve moving forward.

Top 3 Large-Cap Growth Funds to Watch

Here are three large-cap growth funds that stand to benefit from these positive economic trends. These funds have delivered strong returns over the past three and five years, and each requires a minimum initial investment of $5,000 or less.

• Fidelity Contrafund (FCNTX): This fund aims for capital appreciation by investing mainly in companies that management believes are undervalued by the market. FCNTX has consistently posted positive total returns for more than a decade, with three- and five-year returns of 29.9% and 16.2%, respectively. It holds a Zacks Mutual Fund Rank #1 and features an annual expense ratio of 0.75%, which is below the category average.
• JPMorgan U.S. GARP Equity I (JPGSX): Focused on long-term capital growth, this fund invests at least 80% of its assets in large- and mid-cap U.S. equities. JPGSX has delivered positive total returns for over 10 years, with three- and five-year returns of 27.5% and 16.7%, respectively. It also holds a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.59%.
• T. Rowe Price Blue Chip Growth (TRBCX): This fund seeks long-term capital appreciation by investing at least 80% of its assets in established blue-chip companies with strong earnings growth potential. TRBCX has a history of positive total returns for more than a decade, with three- and five-year returns of 29.1% and 11.6%, respectively. The fund’s annual expense ratio is 0.71%, below the category average, and it holds a Zacks Mutual Fund Rank #1.

Why Choose Mutual Funds?

Investing in mutual funds offers several advantages, including lower transaction costs and broad diversification without incurring multiple commission fees that come with buying individual stocks.

Stay Informed with Mutual Fund News

Subscribe to Zacks’ free Fund Newsletter for weekly updates on market news, expert analysis, and top-performing mutual funds.

Top Stock Picks from Zacks

Zacks’ research team has identified five stocks with the potential to double in value in the coming months. Among these, Director of Research Sheraz Mian highlights one standout pick—a lesser-known satellite communications company poised for rapid growth as the space industry expands. Analysts predict a significant revenue surge in 2025. While not every recommendation is a guaranteed winner, this stock could outperform previous top picks like Hims & Hers Health, which soared by 209%.

Looking for more recommendations? Download the “7 Best Stocks for the Next 30 Days” from Zacks Investment Research.

Get Detailed Fund Analysis Reports

• Download your free Fidelity Contrafund (FCNTX) analysis report
• Download your free T. Rowe Price Blue Chip Growth (TRBCX) analysis report
• Download your free JPMorgan U.S. GARP Equity I (JPGSX) analysis report

This article was first published by Zacks Investment Research.

Visit Zacks Investment Research