With the Federal Reserve previously engaged in a bitter – and seemingly, at times desperate – struggle against blisteringly hot inflation, the narrative for growth stocks to buy now frankly didn’t resonate very well with many investors. However, a possible policy pivot could change everything. We’re already seeing evidence of the anticipated shift now.

While the equities market has been resilient amid the tough backdrop, it bounced dramatically higher over the past several weeks. The reason? Recently, Federal Reserve Chair Jerome Powell hinted at possible interest rate cuts next year. If that actually materializes – and to be clear, that’s still a big “if” – then the subsequent decline in borrowing costs should lift risk-on sentiment. And that would bode well for growth stocks to buy now.

In the spirit of full disclosure, investors should realize that this frameworks presents significant risks. With the labor market still running hot, it doesn’t seem appropriate to reduce borrowing costs. At the same time, major institutions continue to implement layoffs. That suggests the economy might not be doing so well as previously hoped.

In that case, rate cuts might make sense. Assuming this scenario, below are growth stocks to buy now.

Devon Energy (DVN)

An energy company engaged in hydrocarbon exploration (upstream), Devon Energy (NYSE:DVN) may be a key beneficiary among growth stocks to buy now. Since the start of the year, DVN almost immediately began slipping in the charts. Due to various headwinds, including economic pressures resulting in broader demand loss along with geopolitical dynamics that failed to spark upside, the energy specialist struggled.

However, a change in monetary policy could be exactly what the company needs to get back on track. At a cynical level, lower interest rates imply a relatively devalued dollar. That should boost the price of commodities, including critical energy sources like petroleum. Further, those who did suffer from the aforementioned layoffs may be scrambling to find a new job.

In this situation, a new employer may be reluctant to allow remote-work benefits for people it hasn’t met in person. Collectively, this framework could help boost hydrocarbon demand, in turn lifting upstream energy providers. Analysts are bullish on Devon, rating its shares a moderate buy with a $56.28 average price target.

Franco-Nevada (FNV)

A precious metals company, Franco-Nevada (NYSE:FNV) makes plenty of sense as one of the prospects for growth stocks to buy now. Again, if the Fed lowers the benchmark interest rate, that would imply the dollar would be devalued against other currencies. It would also translate to gold being more valuable compared to the greenback, all other things being equal.

Even better, Franco-Nevada is structured as a gold royalty and streaming company. That means the company isn’t directly tied to the vagaries and volatility of metal extraction. Rather, Franco-Nevada provides an upfront payment to mining specialists. In exchange, FNV receives a pre-determined share of the revenue (royalty) or the metal production (streaming).

Fundamentally, the underlying predictability of the royalty and streaming business model should help assuage investors’ concerns about gold. And it goes without saying that wagering on an entity like FNV is a lot more convenient than buying, storing and securing physical gold.

Unsurprisingly, analysts are optimistic about Franco-Nevada, pegging its shares as a moderate buy. Also, the average price target comes out to $149.77.

Sturm Ruger (RGR)

To get it out of the way, Sturm Ruger (NYSE:RGR) isn’t everyone’s cup of tea. I get that. However, even if you’re against the underlying industry for ethical, safety and/or political concerns, there’s also no getting around a core reality: Americans love their guns. As several media outlets have pointed out, in the U.S., we have more guns than we do people. It is what it is.

Given this reality, Sturm Ruger – if we’re approaching the matter objectively – enjoys a large addressable market. And what makes RGR a compelling (albeit incredibly controversial) idea among growth stocks to buy now is that the addressable market got bigger. That’s right. N95 respirators weren’t the only products flying off the shelves during the worst of the Covid-19 crisis.

Indeed, you might say there was another epidemic; an epidemic of fear that translated into the purchase of firearms at tremendous scale. Now, many households now have so many guns that they haven’t fired.

Lower borrowing costs should boost consumer sentiment, which may translate to increased recreational activities. At least one analyst seems to recognize the upside opportunity.

Target Hospitality (TH)

A workforce lodging specialist, Target Hospitality (NASDAQ:TH) provides lodging services and other temporary, modular housing solutions for oil, gas and mining operations. As well, Target serves large-scale events, government agencies and disaster relief. Frankly, it’s one of the riskiest ideas to consider, having lost a tremendous amount of value in the past year. At the same time, a dovish monetary policy pivot could change things.

Fundamentally, the hydrocarbon sector – Target’s bread and butter – may be poised to rise. Yes, lower interest rates would likely devalue the dollar, sending critical commodity prices northward. That’s a solid reason in and of itself to consider TH as one of the growth stocks to buy now. However, other factors, such as oil-producing nations agreeing to voluntary production cuts should tip the scale favorably for Target.

Logically, more demand for hydrocarbons would spell more demand for workers. If so, somebody would have to house them as many projects are located out in the boonies. Sure enough, analysts agree, pegging TH a unanimous strong buy with a $14 price target.

Imax (IMAX)

Specializing in the design and manufacturing of advanced cameras and projection systems, Imax (NYSE:IMAX) ranks among the more intriguing ideas for growth stocks to buy now. Yes, it’s a risky idea, no doubt about it. Over the past few weeks, IMAX gave up a conspicuous amount of equity value. Still, the red ink could spell a de-risked opportunity.

On a broader level, lower borrowing costs historically led to increased consumer sentiment. To be sure, throughout the holidays, the evidence points to modern consumers being favorably responsive to lower rates. That’s because consumers didn’t stop shopping; instead, the way they exercised their discretionary desires – through buy now, pay later (BNPL) platforms – changed.

Stated differently, people continued to open their wallets despite economic difficulties. Therefore, if the Fed reduces borrowing costs, this dynamic will allow that spending to materialize more effectively. In turn, consumers may be willing to fork over for premium experiences like watching Imax-projected films.

Analysts appear enthusiastic about the idea, rating shares a consensus strong buy with a $23.50 price target.

Jazz Pharmaceuticals (JAZZ)

A risky endeavor, I hesitate to call Jazz Pharmaceuticals (NASDAQ:JAZZ) one of the growth stocks to buy now. Having dropped almost 22% of equity value since the beginning of the year, JAZZ presents high risks. Not only that, the broader fundamentals pose viability concerns. After all, in October, Bloomberg reported that the company was exploring strategic options including a potential sale.

A month later, Jazz reported adjusted earnings per share of $4.84 in the third quarter. This result missed analysts’ consensus target of $4.90. As well, the figure declined 6% year-over-year due to increased research and development expenditures during Q3. Adding to the woes, sales of the sleep disorder drug Xyrem collapsed 51% YOY.

Nevertheless, Jazz is making good progress in other therapeutics, including its epilepsy drug Epidiolex and its cannabis-based mouth spray for multiple sclerosis-related spasticities called Sativex. Moving forward, if the Fed lowers interest rates, it may help Jazz finance future initiatives. And for what it’s worth, analysts peg shares a strong buy with a $193.36 price target, implying 58% upside.

Contango Ore (CTGO)

Last but not least, we have Contango Ore (NYSEAMERICAN:CTGO) as one of the growth stocks to buy now. Granted, it’s a high-risk, high-reward enterprise so you don’t want to treat this play flippantly. Also, the company only carries a market capitalization of $179 million. By arguably most standards, that’s well within micro-cap territory. Huge upswings are possible but so are collapses.

With that out of the way, the mineral exploration and development company is intriguing because of its gold projects in Alaska. It’s not currently producing gold. Instead, it owns a 30% interest in the Peak Gold Joint Venture with Kinross Gold (NYSE:KGC). However, production should start next year, which should pique speculators’ curiosity.

If borrowing costs decline, that implies dollar devaluation. And few assets respond as heartily to such devaluation as gold. And given that CTGO is a choppy micro-cap trade, Fed Chair Powell could make investors very happy. And that’s what Maxim Group’s Tate Sullivan anticipates, with a $36 price target implying 89% growth.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.