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The S&P 500 lost for the ninth straight session on Nov 4, marking the longest declining stretch for the index since 1980. Meanwhile, investors are apprehensive about the upcoming elections, which compelled them to remain on the sidelines or park investments in risk-averse assets such as gold and short-term duration bonds. But, such a losing streak reflects that the benchmark index is quite oversold and seemingly ready for a counter-trend bounce.

Hence, it is the ideal time to capitalize on this drop by betting on stocks that are poised to grow in the near term. Further, the decent form of the economy and improvement in earnings are likely to bolster investor sentiment. Uncertainty is also likely to ease after the elections wrap up on Nov 8.

S&P 500 Slips for 9th Straight Session

The S&P 500 has dropped 3.48 points or 0.2% to 2,085.18, marking the ninth straight session decline at 3.1%.

The CBOE Volatility Index (VIX), often referred to as “investor fear gauge”, has soared 22.5% during the past nine sessions to 22.5, above its 10-year average of about 21. This is the first time that the VIX has surged for nine consecutive days in 27 years.

Election Inspired Volatility

Political uncertainty is currently at its peak, thanks to the elections. FBI Director James Comey told lawmakers on Sunday that there are no charges against Hillary Clinton after the new email review. Clinton was being investigated on her use of a private server and handling of classified information while she was the state secretary. While the Clinton campaign said that they were “glad” that the lingering concern has been resolved, Trump cried foul (read more: Portfolio Strategy for 2016 Presidential Election).

FBI’s probe into the uncovered emails by Clinton had earlier narrowed her chances of winning the race to the White House. The latest opinion polls on Sunday, before news broke of the FBI announcement, gave Clinton a meager four to five-point lead over Republican candidate Donald Trump.

Will Stocks Rally Post Election?

Investors for quite some time have largely priced in a Clinton victory and never really expected the race to be so tight. But, most investors have already positioned themselves to ride out any post-election volatility. Moreover, markets are expected to take off after the polls, thanks to the traditional fourth-quarter rally that is expected to take precedence. The U.S. economy has already expanded at the fastest pace in two years in the third quarter. Gross domestic product increased 2.9% in the third quarter, buoyed by soybean exports (read more: 4 Stocks to Gain from Strong Q3 GDP Expansion).

The U.S. economy also added 161,000 jobs in October, while the unemployment rate fell to 4.9% from 5%, reflecting tighter labor market conditions. The jobless rate remained near an eight-year low. Healthcare companies, professional and business services, and financial firms led the way in job creation (read more: All About October Jobs: +161K, Plus Upward Revisions).

Hiring has improved considerably in the prior two months, which showed that the economy has plenty of room left. Improvement in employment opportunities will lead to an uptick in spending levels. Thanks to Thanksgiving, Black Friday and Cyber Monday holidays this month, consumers are expected to stretch their wallet a little.

A number of economic reports including positive productivity data, factory orders and the nonmanufacturing ISM survey largely underlined steady economic growth. As the economy looks solid, earnings are expected to come in better than expected. Total third-quarter earnings from 423 S&P 500 members reported so far are up 3.6% from the same period last year on 2.4% higher revenues, with 72.8% beating EPS estimates and 55.1% coming ahead of revenue estimates (read more: Q3 Earnings Season: An Inflection Point).

Top 5 S&P 500 Growth Stocks to Buy Now

Banking on the strengths, the S&P 500 is positioned to make a comeback in the near term. Since the long term bodes well for stocks after the initial dip, it will be wise to invest in growth stocks. Moreover, by purchasing stocks right after a dip, investors are essentially buying shares at a discounted price.

With the help of our new style score system, we have short-listed Zacks Rank #2 (Buy) stocks with a Growth Style Score of ‘A’ or ‘B’ that hold immense growth potential despite  the recent slump. Our research shows that stocks with a Growth Style Score of ‘A’ or “B’ when combined with a Zacks Rank #2 offer the best investment opportunities in the growth investing space. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Avery Dennison Corporation (AVY - Free Report) produces and sells pressure-sensitive materials. The company has a Growth Score of ‘B’, despite the 6.7% fall in the last nine days. Avery Dennison’s expected growth rate for the current year is 15.2%.

General Motors Company (GM - Free Report) designs, builds, and sells cars, crossovers, trucks, and automobile parts. The company has a Growth Score of ‘B’, in spite of the 5.5% decline in the last nine days. General Motors’ expected growth rate for the current year is 19.6%.

Global Payments Inc. (GPN - Free Report) provides payment solutions for credit cards, debit cards, electronic payments, and check-related services. The company has a Growth Score of ‘A’, despite plunging 4.4% in the last nine days. Global Payments’projected growth rate for the current year is 12.5%.

Humana Inc. (HUM - Free Report) operates as a health and well-being company. The company has a Growth Score of ‘A’, in spite of the 5% fall in the last nine days. Humana’sexpected growth rate for the current year is 22.6%.

Intel Corporation (INTC - Free Report) designs, manufactures, and sells integrated digital technology platforms. The company has a  Growth Score of ‘B’, despite the 4.7% drop in the last nine days. Intel’s expected growth rate for the current year is 14.4%.

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