Bullish outlook on interest rate sensitive stocks before anticipated rate cut

From Nasdaq
August 9, 2024 6:03 am:

JP Morgan predicts a 35% chance of U.S. recession by year-end and 45% by first half of 2025. Expect fed to pursue expansionary policies, bullish for interest rate sensitive stocks and industrial commodities. Seven interest rate sensitive stocks poised to rise on rate cut. Newmont Corporation offers upside with gold rally and healthy dividend yield of 2.1%.

Chevron Corporation is undervalued with attractive breakeven assets. Expects $35 to $40B annual OCF with oil near $100/barrel. Investment grade balance sheet allows aggressive investments. Rio Tinto undervalued with forward P/E of 8.6, offers 6.9% dividend yield. Strong cash flows despite subdued commodity prices. Diversification into energy transition metals to create long-term value.

Coinbase Global corrected 16% in last month, presents buying opportunity with forward P/E of 33. Healthy EBITDA despite subdued trading income. Geographic expansion to yield growth, expect accelerated cash flow upside. Target Corporation poised for growth on potential rate cuts, attractive forward P/E of 14.3. Expect stock breakout as holiday season approaches.

Tesla set to benefit from lower interest rates with EV demand likely to rise. Working on cost-cutting manufacturing process that could lead to low-cost car launch. Cathie Wood bullish on TSLA stock potential surge on Robotaxis. Barrick Gold poised for breakout rally with uptrending gold prices. Largest U.S. gold producer with investment grade rating and potential for solid cash flow growth.

Read more at Nasdaq: 7 Interest Rate Sensitive Stocks to Buy Before the First Rate Cut