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

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

Top 3 stocks to buy after Fed’s 25-basis-point rate cut

by admin November 9, 2024
November 9, 2024
Top 3 stocks to buy after Fed’s 25-basis-point rate cut

US stocks remain resilient following the Federal Reserve’s decision to lower its key interest rate by another 25 basis points on Thursday.

According to the post-meeting statement:

The Committee judges that the risks of achieving its employment and inflation goals are roughly in balance.

Lower interest rates are generally considered positive for the equities market. Here are three stocks that are particularly attractive as the US central bank continues to cut its benchmark overnight borrowing rate:

AbbVie Inc (NYSE: ABBV)

AbbVie is a pharmaceutical behemoth that could benefit from lower interest rates as it requires easy access to cash to reliably fund its product pipeline – and rate cuts typically make it cheaper to borrow money.

The New York-listed firm recently reported better-than-expected financial results for its third quarter and raised its guidance for the full year making it all the more attractive to own for 2025.  

Additionally, the company based out of North Carolina, Chicago is particularly well-positioned for healthy total returns as it currently pays a dividend yield of 3.27%.  

Note that analysts at Cantor Fitzgerald raised their price target on AbbVie stock to $240 last week which indicates potential for about a 20% upside from here.

Chevron Corp (NYSE: CVX)

One of the reasons why the US Federal Reserve chooses to cut interest rates is to stimulate economic growth that tends to accelerate energy demand.

So, investors should consider buying Chevron stock amidst rate cuts as they could help the oil and gas behemoth improve its profitability in the months ahead.

Lower borrowing costs may also make it easier for CVX to fund new projects and unlock the next wave of growth. A rather lucrative dividend yield of 4.15% makes up for another great reason to have Chevron stock in your portfolio.

Shares of the energy company are worth owning also because the pending Hess acquisition that its management expects will close in the back half of next year will likely help increase production and scale operations.

Elf Beauty Inc (NYSE: ELF)

Rate cuts are directly linked with lower cost of capital that typically catalyzes high-growth names like Elf Beauty.

The beauty company has grown its shares as well as market share over the past 22 consecutive quarters.     

Plus, lower interest rates tend to increase consumer spending, particularly on discretionary items like beauty products that ELF primarily deals in.

Elf stock is attractive at current levels also because it reported its financial results for the second quarter this week that came in well above Street estimates.

Unlike other names on this list, however, Elf stock does not pay a dividend at writing and is, therefore, not a suitable pick for income investors.

The post Top 3 stocks to buy after Fed’s 25-basis-point rate cut appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Dow and S&P 500 extend gains after Fed rate cut; Tesla hits $1T, chip stocks slip
next post
Chegg stock price outlook: could CHGG surge 75% after earnings?

Related Posts

Ukraine claims Russian forces using Starlink network in...

February 13, 2024

Canada’s Q1 GDP expands by 2.2%, driven by...

June 1, 2025

A Ukrainian pilot outlines how drones powered by...

February 6, 2024

Gold’s historic run: seven weeks of gains and...

February 14, 2025

Leading Gaza surgeon Adnan Al-Bursh dies in Israeli prison

May 4, 2024

Israeli airstrikes target Yemen’s Houthis day after deadly...

July 21, 2024

Landslide at landfill in Uganda’s capital kills 8...

August 11, 2024

Israeli military says no change in civilian guidelines...

August 12, 2024

Badly burned and no escape: Girl, 9, among...

June 17, 2024

Militants squabble over fate of New Zealand pilot...

February 7, 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

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,199)
    • Investing (2,531)
    • Latest News (2,000)
    • 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