History Says the Great Rotation Is Just Getting Started. 2 Growth Stocks to Buy Now.

Every market rotation has that moment where investors ask, "Did I miss it?" But these shifts rarely happen all at once. Like the late 1990s, they unfold slowly and test your patience, and the "Great Rotation" we are experiencing right now still feels like it's early.

The iShares Expanded Tech-Software Sector ETF is down more than 20% in early 2026, while industrials and consumer staples are up double digits. The S&P 500 Equal Weight index is also outperforming, a sign that leadership is broadening, something you typically see in the middle of a rotation, not the end.

It doesn't feel obvious yet, and that's the point. The best opportunities right now are likely in tech-adjacent and telecom infrastructure names that haven't been crowded trades. Here are two strong tickers to watch.

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Clearfield is sitting on a government-funded tailwind

Most investors interested in fiber infrastructure have heard of the bigger names. Clearfield (NASDAQ: CLFD) isn't one of the big ones, but it probably should be. The Minneapolis-based company designs, manufactures, and distributes fiber optic management and delivery solutions that broadband operators use to connect homes and businesses to high-speed internet.

In its fiscal 2026's first quarter, Clearfield grew net sales 16% year over year to $34.3 million and expanded gross margin by 4 percentage points to 33.2%. It also launched its NOVA Platform, which is a modular fiber ecosystem designed for higher-density installations in data centers, enterprise facilities, and community broadband central offices.

The real catalyst to watch for is the money already committed by the federal government that Clearfield might capitalize on. The Broadband Equity, Access, and Deployment program (better known as BEAD) is the largest broadband infrastructure subsidy in U.S. history. Analysts modeling Clearfield's business are building in BEAD-related demand growth of more than 20% in calendar 2026.

Company management has said community broadband providers, which are Clearfield's core customers, will deploy BEAD funds faster than Tier 1 operators because of their more agile structure. The fiber market is projected to grow from roughly $19.1 billion in 2022 to $29.7 billion by 2026, a compound annual growth rate of 13.1%. In other words, this means Clearfield is set to gain lots of exposure from consistent government money.

The risk to be wary of here is execution. Guidance for Q2 came in below some expectations, and the company is still integrating changes from its Nestor divestiture. It's not a smooth ride. But this is exactly the kind of smaller infrastructure growth stock that gets pulled up during a real rotation into real-economy growth.

Belden is the backbone of industrial automation

Belden (NYSE: BDC) makes the cables, switches, firewalls, and networking hardware that keep industrial facilities, data centers, smart buildings, and broadband networks connected. It isn't a glamorous business model, but it's an essential service.

The company's industrial segment, which covers infrastructure digitization and automation, has been growing at roughly 8% annually, while its enterprise segment covers network infrastructure and broadband solutions. Belden is executing a deliberate shift away from low-margin commodity products toward integrated, higher-value industrial IoT and networking solutions. In the longer run, this will improve margins.

The long-term thesis isn't complicated. The digitization of industrial environments, the build-out of smart infrastructure, and the proliferation of edge computing all require the exact physical layer networking gear that Belden specializes in. This is a strong indication of a safe growth stock.

The industrial automation market is expected to grow at 5% to 7% annually on a sustained basis. Belden's EPS has compounded at 22.4% annually over the past five years, well ahead of its 7.8% revenue growth. This is a signal that operating leverage is real and improving.

Be wary -- rotations don't move in straight lines, and both smaller infrastructure plays and industrial names can be volatile as capital shifts unevenly across the market. So, don't try too hard to time your trades. But if the "Great Rotation" continues to broaden, companies like Clearfield and Belden are positioned in the kind of under-the-radar, real-economy growth areas that tend to benefit most.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.