3 Growth Stocks To Watch As Lower Inflation Lifts Rate Cut Hopes

Cooling signals from the Fed’s preferred inflation gauges, including the Dallas Fed trimmed mean dropping to 1.4% in June, are giving growth investors a fresh data point to think about. Inflation is still above the Fed’s 2% target on traditional measures and some officials remain hawkish, so the rate path is not yet settled. That mix of softer alternative readings and firm policy talk can matter a lot for growth stocks with strong expansion plans. This article looks at 3 stocks from our Growth Stocks screener that appear well aligned with this backdrop.

Overview: Pennant Group runs a network of home health, hospice, and senior living operations across multiple U.S. states, supporting older and medically fragile patients with at home clinical care and residential communities. It focuses on services such as skilled nursing, therapy, end of life support, and assisted living for seniors who want to stay independent but need varying levels of help.

Operations: Pennant Group generates about US$800.8 million from Home Health and Hospice Services, US$215.2 million from Senior Living Services, and US$7.2 million from other activities, all from the United States, for total revenue of roughly US$1.0b.

Market Cap: US$1.43b

Pennant Group provides exposure to the long term shift toward home based and senior care, with earnings forecast to grow 27.37% per year and support from aging demographics and payer interest in lower cost care. Recent Q1 2026 results show higher sales and earnings. Acquisitions such as the Contra Costa memory care community expand its senior living footprint. That growth story comes with important trade offs, including a relatively high P/E, a heavy debt load, and meaningful reliance on Medicare and Medicaid policies that could pressure margins if reimbursement rules change. Investors who want to understand how those strengths and pressures fit together may find Pennant Group’s detailed growth, risk, and valuation profile worth a closer look.

Pennant Group’s expansion story and aging demographic tailwinds are hard to ignore; however, the mix of a rich P/E and policy exposure means the real question is how those trade offs net out in the 3 key rewards and 1 important warning sign

Overview: Waystar Holding provides cloud-based software that helps hospitals and clinics manage the entire healthcare payments process, from checking a patient’s coverage through to billing, collections, and analytics. Its platform combines automation and AI tools to reduce denied claims, improve cash collection for providers, and simplify financial interactions for patients.

Market Cap: US$4.02b

Waystar Holding gives you exposure to the shift toward digital, AI-assisted revenue cycle management in healthcare, with earnings forecast to grow around 20.3% per year and analysts expecting upside if that pace continues. The company’s acquisition of Iodine Software has expanded its AI toolkit and helped support double digit subscription growth and raised guidance, while recent Q2 2026 results showed 18% revenue growth and stronger margins. At the same time, high leverage from acquisitions, relatively low current and forecast ROE, and heavy dependence on external borrowing mean the balance sheet is not without pressure. If you want to see how those growth drivers weigh up against the financial and regulatory risks, the full Waystar Holding narrative is worth careful review.

Waystar Holding’s accelerating subscription growth and expanding AI toolkit hint at a payments engine that the market may not fully appreciate yet. Compare that story with the analyst forecasts for Waystar Holding to see what might be missing.

Overview: Nova designs and sells advanced metrology and process control systems that help chipmakers measure tiny features and material properties during semiconductor production, supporting logic, foundry, memory, and packaging customers across major manufacturing hubs worldwide.

Operations: Nova generates about US$902.5 million in revenue from semiconductor equipment and related services.

Market Cap: US$12.5b

Nova sits at the heart of the push toward more complex AI and advanced packaging chips, with metrology tools that are increasingly selected as tools of record by global foundries and memory producers. The company combines high gross margins, solid earnings growth, and a P/E that is below many direct peers. However, its share price screens as expensive against some cash flow estimates and recent returns have lagged the broader semiconductor group. In addition, there is concentrated exposure to a handful of large customers, geopolitical risk around China, and recent insider selling. Overall, there is a lot for growth focused investors to weigh up before deciding how to treat Nova in a world where Fed driven rate moderation could favor high quality chip equipment stocks.

Nova’s metrology edge, high gross margins, and customer concentration make its story feel incomplete without the full context. Read the analysis report for Nova to see the key twist that could change the risk reward picture.

The three growth stocks highlighted here are only a starting point, since the full Growth Stocks screener surfaced 30 more companies with equally compelling narratives and financial profiles in the Growth Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts, balance sheet strengths, and growth drivers that matter most so you can focus on the highest conviction opportunities.

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Seeking Fresh Alternatives Before They Fly

Fresh growth stories can move from quiet to crowded quickly. Identify momentum shifts while they matter and look for under the radar ideas before they attract wider attention.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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