Wall Street analysts named a slew of stocks with upside after the Federal Reserve dialed back interest rates by a half point and forecast more rate cuts ahead. These companies are expected to benefit from lower interest rates over the long haul, according to analysts. The central bank's move brings the federal funds rate to a range of 4.75% to 5.00%.
Pro combed through Wall Street research to find buy-rated stocks best positioned in a falling rate environment. They include Western Alliance , Best Buy, Coca-Cola, Zillow , UPS and FedEx. Zillow Wedbush analyst Jay McCanless recently lifted his rating on the online real estate marketplace company to outperform from neutral. The upgrade, according to the firm, is based in part on lower mortgage rates.
Visibility seems strong. … We find this trifecta — sales, margins and valuation — as differentiated." Zillow — Wedbush, outperform rating "In addition to potentially positive catalyst of lower mortgage rates for Zillow's core brokerage business, we see ZG's software and services initiatives adding to potential upside risk to our estimates. … However, if our outlook on Residential revenues proves correct, that may be an upside risk to our Mortgage revenue assumptions.