Buy 3 Large-Cap Growth Funds on Solid Rebound in Consumer Confidence

Consumers have been increasingly concerned about a tightening job market, but overall optimism toward the economy’s health remains intact. Several consumers believe that conditions will improve and that the broader economy is on track for a recovery.

This improving outlook helped lift consumer confidence in February. At the same time, unemployment edged lower in January, and consumers expect inflationary pressures to ease in the near future.

Against this backdrop, large-cap growth funds such as Fidelity Contrafund FCNTX, JPMorgan U.S. GARP Equity I JPGSX and T. Rowe Price Blue Chip Growth TRBCX appear to be attractive buys.

Consumer Confidence Improves

The Conference Board reported that consumer confidence rose by 2.2 points in February to 91.2 from January’s upwardly revised reading of 89. January’s initial figure of 84.5 marked the weakest level since May 2014. February’s jump also came in well above analysts’ expectations of 87.

Although confidence remains well below its November 2024 peak of 112.8, the recovery has been notable so far. The survey shows that concerns about job availability persist, with the share of respondents saying jobs were “hard to get” climbing to 20.6%, the highest since early 2021. Even so, more households reported improvement in job prospects, as those saying jobs were “plentiful” rose to 28% in February from 25.8% in January.

Meanwhile, the unemployment rate slipped to 4.3% in January from 4.4% a month earlier, supported by the addition of roughly 130,000 new jobs.

Further reinforcing the upbeat tone, the University of Michigan reported that its Consumer Sentiment Index rose to 57.3 in February from 56.4 in January and the highest level since August 2025. Investors are increasingly confident that inflation will ease and provide a boost to economic growth.

Short-term inflation expectations for the year ahead fell to a 13-month low of 3.5% in February from 4% in January. There is also growing belief among investors that the worst effects of President Donald Trump’s tariffs are already behind the economy, with conditions expected to gradually ease in the months ahead.

3 Large-Cap Growth Funds With Upside

We have selected three large-cap growth funds that are poised to gain from the above factors. Moreover, these funds have encouraging three and five-year returns. The minimum initial investment is within $5000.

We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors in identifying potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.

The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Fidelity Contrafund seeks capital appreciation. FCNTX invests primarily in the common stock of companies whose value management believes is not fully recognized by the public.

Fidelity Contrafund has a track record of positive total returns for over 10 years. Specifically, FCNTX’s returns over the three and five-year benchmarks are 29.9% and 16.2%, respectively. FCNTX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.75%, which is lower than its category average.

To see how this fund performed compared to its category and other #1 or 2 Ranked Mutual Funds, please click here.

JPMorgan U.S. GARP Equity I fund seeks long-term growth of capital. Under normal circumstances, JPGSX invests at least 80% of its assets in equity investments of large- and mid-capitalization U.S. companies.

JPMorgan U.S. GARP Equity I fund has a track record of positive total returns for over 10 years. Specifically, JPGSX’s returns over the three and five-year benchmarks are 27.5% and 16.7%, respectively. JPGSX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.59%.

To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.

T. Rowe Price Blue Chip Growth fund seeks long-term capital growth. TRBCX invests at least 80% of its net assets in common stocks of large and medium-sized, blue-chip companies that have the potential for above-average growth in earnings and are well-established in their respective industries.

T. Rowe Price Blue Chip Growth fund has a track record of positive total returns for over 10 years. Specifically, TRBCX’s returns over the three and five-year benchmarks are 29.1% and 11.6%, respectively. The fund has an annualexpense ratio of 0.71%, which is lower than its category average. TRBCX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.

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