American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

Top 3 rate-sensitive stocks to watch in 2025 amid Fed rate cuts

by admin September 22, 2024
September 22, 2024

US stocks have surged over the past two days following the Federal Reserve’s decision to lower its benchmark interest rate by 50 basis points.

This marks the Fed’s first rate cut in four years and signals a more accommodative monetary policy ahead, with an additional 50-basis point cut projected by year-end.

Lower interest rates generally boost the stock market, as they reduce borrowing costs for companies, encouraging investment, expansion, and potentially higher profits.

However, analysts at Jefferies have singled out three rate-sensitive stocks that stand to gain the most from this shift in monetary policy, particularly as rates continue to decline in the coming months.

Here’s a closer look at these stocks and why they could be smart investments for 2025.

JPMorgan Chase & Co (NYSE: JPM)

JPMorgan Chase is one of the top picks for Jefferies, as it’s poised to benefit from the Federal Reserve’s recent rate cuts.

Lower interest rates are expected to positively impact JPMorgan’s wealth management and investment banking divisions.

With the Fed’s jumbo rate cut raising hopes for a soft landing in the economy, JPMorgan could see significant upside potential.

Despite a strong performance year-to-date, Jefferies still sees value in JPMorgan, with the stock trading at a price-to-earnings ratio of under 12.

In addition, investors can enjoy a solid 2.19% dividend yield, making JPMorgan an attractive option for long-term growth.

Alphabet Inc (NASDAQ: GOOGL)

Alphabet, the parent company of Google, is another major beneficiary of lower interest rates, particularly among large-cap tech stocks.

Currently down about 15% from its July high, Alphabet presents a unique opportunity for investors to buy a high-quality tech stock at a discount, according to Jefferies.

Lower rates will provide Alphabet with greater financial flexibility to accelerate investments in artificial intelligence (AI), a sector Statista forecasts will become a $1 trillion market by 2030.

Alphabet’s recent introduction of its first-ever dividend and a $70 billion stock buyback program further enhanced its long-term appeal for investors.

Owens Corning (NYSE: OC)

Owens Corning, the Ohio-based manufacturer of fiberglass composites, is expected to thrive in a low-interest-rate environment.

Jefferies predicts that falling rates will boost demand for insulation, roofing, and fiberglass composites as the housing market sees renewed activity from lower mortgage rates.

In August, Owens Corning exceeded expectations for its quarterly earnings and projected over 20% year-over-year growth in net sales for the third quarter.

This outlook signals strong confidence in the company’s future.

Investors can also benefit from Owens Corning’s dividend yield of 1.35%, making it another solid choice for rate-sensitive stocks.

As the Federal Reserve moves toward a more accommodative stance, these three stocks—JPMorgan Chase, Alphabet, and Owens Corning—are well-positioned to capitalize on the benefits of lower interest rates.

With strong fundamentals, attractive valuations, and promising growth prospects, these companies could be valuable additions to any investor’s portfolio for 2025.

The post Top 3 rate-sensitive stocks to watch in 2025 amid Fed rate cuts appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Venezuela’s investment climate worsens amid political and economic turmoil
next post
IAG share price is about to form a very rare bullish pattern

Related Posts

Can this ocean-based carbon plant help save the...

April 22, 2024

King Charles III has cancer and will step...

February 6, 2024

Caught between China and the US, asylum seekers live in...

May 19, 2024

Tens of millions facing hunger and water shortages...

April 5, 2024

Researchers reveal lost library of Charles Darwin for...

February 13, 2024

Inox Green Energy, Premier Energies and six other...

January 21, 2025

Hong Kong stocks decline as investors react to...

September 16, 2024

Despite scenes of defiance, plenty of Russians support...

March 13, 2024

Ukraine ‘ran out of missiles’ to thwart Russian...

April 18, 2024

Dozens of journalists detained in Moscow as military...

February 4, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved