Well-known investment advisor Ed Yardeni believes that U.S. stocks are poised to rally this year. Speaking to CNBC last week, Yardeni said that the banking mini-crisis will be “very well-contained” by the Federal Reserve and Federal Deposit Insurance Corporation (FDIC). He noted that the banks’ issues should prevent the Fed from raising interest rates further and that he thinks the S&P 500 could surge to 4,600 by the end of this year — a 12% rise from here. If you share Yardeni’s bullish outlook — as I do — it’s time to think about stocks to buy for a market rally.

With many investors looking for a recession that probably won’t materialize, I believe growth stocks that are highly leveraged to the American economy are a good bet. But given the elevated interest rate environment and the cautiousness of many investors, I would avoid names with stratospheric valuations unless they have strong disruptive potential.

The seven names below stand to benefit from stronger-than-expected economic growth and are reasonably valued stocks to buy for a market rally.

GE	General Electric	$95.05
RVNC	Revance Therapeutics	$33.41
ON	ON Semiconductor	$78.49
DE	Deere & Company	$397.66
M	Macy’s	$18.92
FCX	Freeport-McMoRan	$40.26
CLF	Cleveland-Cliffs	$17.49

General Electric (GE)

General Electric (NYSE:GE) is one of the world’s largest and most-diversified industrial companies. I’ve included it on today’s list of stocks to buy for a market rally for two reasons.

The first is that the company is poised to benefit from strong demand for travel given its huge aircraft engine business.

Travel has made a full comeback, with spending in March up 9% year over year and 5% from 2019 levels, according to the U.S. Travel Association. While international travel spending remains below pre-pandemic levels, it is improving. Further, more than half of Americans said they are planning to prioritize leisure travel spending. And additional research by the Global Business Travel Association suggests business travel is expected to pick up this year as well.

Robust travel demand has led to airlines ordering more planes. Boeing (NYSE:BA) and Airbus (OTC:EADSY) are the only large passenger aircraft manufacturers in the world, and GE counts both as customers. Thanks to a 26% jump in orders for its aerospace division in Q4, revenue for the segment was up 25% year over year. And as Seeking Alpha’s Rob Williams recently noted, shares popped to multiyear highs after management said this demand would drive revenue for years to come, including double-digit growth this year.

The other reason I like GE stock here is that the company’s Grid Solutions unit has a great deal of growth ahead of it. The segment provides “power utilities and industries worldwide with equipment, systems and services to bring power reliably and efficiently from the point of generation to end power consumer.”

Already this year, GE has won a multi-million-dollar contract from the Nepal Electricity Authority to strengthen the country’s power transmission network. Further, two “GE-led consortiums” were awarded five multiyear contracts to build high-voltage direct current systems for wind power generation in the Netherlands and Germany.

GE stock is up 45% so far this year. Despite its recent rally, shares change hands for a very reasonable 17.5 times trailing operating cash flow.

Revance Therapeutics (RVNC)

Revance Therapeutics (NASDAQ:RVNC) has developed an injection called Daxxify that combats frown lines. Approved by the Food and Drug Administration (FDA) in September, the product has emerged as a competitor to Botox. The big selling point for Daxxify is that it lasts six months, about twice as long as Botox.

The company reported Q4 results in late February. Revenue surged 92% year over year to $49.9 million. The increase was partially driven by Daxxify, which generated strong sales even before its commercial launch at the end of last month.

“[W]e’ve been very pleased with the strong initial uptake and positive feedback from both injectors and consumers,” said Revance Chief Executive Officer (CEO) Mark Foley during the company’s Q4 earnings call.

Following the release of the quarterly results, Barclays reiterated its “overweight” rating on RVNC stock and raised its price target to $40 from $37, saying it offers a compelling risk/reward proposition. The new target implies upside of 20% from current levels.

As the economy strengthens, consumers will have more disposable income to pay for things like Daxxify. I believe the company’s $2.8 billion market capitalization far understates its value given the vast potential of Daxxify.

ON Semiconductor (ON)

On Semiconductor (NASDAQ:ON) is a chipmaker that’s highly leveraged to the automotive and industrial end markets, both of which are growing rapidly. In fact, in the fourth quarter of 2022, those two end markets generated about 83% of On’s total sales.

Fueled by electrification and the proliferation of advanced driver-assistance systems (ADAS), On’s revenue from its automotive customers is expected to grow at an impressive compound annual growth rate (CAGR) of 17% from 2021 to 2025, while its industrial revenue is poised to increase at a CAGR of 7%.

In a March 7 discussion with an analyst, On CEO Hassane El-Khoury noted, “We’ve had strong last couple of years, and we see that strength sustaining.”

On March 8, Bank of America increased its price target for ON stock to $100 from $90, citing El-Khoury’s comments along with a new deal that the company signed to supply BMW (OTC:BMWYY) with chips for its EVs. The new target is more than 27% above the current share price.

Finally, ON stock is changing hands at an attractive price-to-earnings (P/E) ratio of 18.5, representing a discount to its five-year average P/E of 31.

Deere & Company (DE)

Deere & Company (NYSE:DE), a leading maker and marketer of farm machinery,  is poised to benefit from two important trends: continued high food prices and Washington’s huge infrastructure spending.

Because of high food prices, farmers in America and other countries are “in the money,” as they say, enabling them to pay high prices for Deere’s farm machinery and upgrade their machinery often.

On the infrastructure front, Investor’s Business Daily contributor Michael Molinski pointed out in December that Deere should benefit from the Infrastructure Investment and Jobs Act passed last year, since the company sells a significant amount of construction equipment. Meanwhile, the Inflation Reduction Act, which includes billions of dollars for renewable energy and mining projects, should drive sales of the company’s mining and other equipment.

Also likely to work in Deere’s favor in 2023 is the normalization of supply chains, as this headwind was a drag on the company’s financial results last year. Finally, Deere is a play on artificial intelligence (AI), one of the year’s hottest trends, with its development of “fully autonomous” tractors.

Analysts expect the company to grow revenue by 13.4% to $54.4 billion this year and for earnings to increase by 31% to $30.49 per share. I wouldn’t be surprised to see the company exceed these levels. DE’s construction unit, in particular, should benefit from stronger-than-expected U.S. economic growth.

Macy’s (M)

Macy’s (NYSE:M) is a good way to play several important macro trends. These include U.S. economic growth that’s likely to beat expectations, continued strength in the labor market and increasing consumer discretionary spending.

The retailer reported Q4 results on March 2. Adjusted earnings, excluding certain items, of $1.71 per share came in well above analysts’ average estimate of $1.57, while revenue of $8.3 billion was in line with estimates. While same-store sales were down 2.7% on a year-over-year basis, they were up 3.3% from the fourth quarter of 2019.

In a note to investors on March 3, TD Cowen increased its price target on M stock to $29 from $27, implying upside of 53%. The bank noted Macy’s ability to meaningfully cut its inventories while “driving profitable sales growth and realizing strength in gifting occasion-wear beauty and luxury in 4Q inclusive of a better January,” according to The Fly.

M stock is trading with a bargain basement trailing price-earnings ratio of 3.2 and has a sizeable dividend yield of 3.5%.

Freeport McMoran (FCX)

Like Macy’s Freeport McMoran (NYSE:FCX) is a play on multiple strong macro trends. In the case of FCX, the copper miner is well-positioned to benefit from U.S. economic growth, the energy transition, America’s onshoring trend and the electrification of transportation. Additionally, the reopening of China’s economy bodes very well for FCX stock.

Last month, Goldman Sachs called its outlook for copper “extraordinarily positive” due to record-low inventories and supply that’s likely to peak next year.  The bank expects copper prices to reach $10,500 a ton in the near term and $15,000 a ton in the longer term, up from around $8,900 a ton currently.

Even more upbeat is Trafigura. On March 20, the copper trader said prices could hit $12,000 per ton within a year due to a shortage of the metal.

Higher copper prices translate into more profits for Freeport McMoran and its shareholders.

Cleveland Cliffs (CLF)

Steelmaker Cleveland Cliffs (NYSE:CLF) is another name that will benefit from stronger-than-expected American economic growth. In particular, CLF stock is likely to get a lift from better-than-expected auto sales, as the company is the “largest supplier of steel to the automotive sector,” according to S&P Global.

Cox Automotive notes strength in the new-vehicle market in 2023, with Q1 volume increasing more than 6% year over year. Meanwhile, automaker General Motors (NYSE:GM) just reported deliveries soared 18% YOY in the first quarter.

CLF will also be helped by the onshoring trend and the Infrastructure Investment and Jobs Act, as it names “infrastructure” and “manufacturing” as two of its other important end markets.

On April 3, Seeking Alpha noted the company has raised its spot market base prices five times already this year, indicating strong demand.

As of the date of publication, Larry Ramer owned shares of GE and FCX.  The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.