Stock picking

3 stocks to absolutely evaluate with high rates, according to analysts

These 3 stocks are absolutely worth buying when rates start to rise again according to analysts.
Although 2024 began with the expectation of an imminent rate cut by the Federal Reserve, the rise in bond yields dampens investors' optimism.
Inflation is falling but is not completely under control and policy makers urge us to proceed with caution, in view of the elections and possible escalation in geopolitical conflicts.
The odds that the Fed will cut interest rates at its next meeting have fallen to about 50% from 80% a week ago.
However, this situation allows us to identify investment opportunities, even in a context of higher rates.
Here are 3 Wall Street stocks that could emerge as winners in this scenario.
read also Markets, the euphoria is over and the reasons are 2 1) Progressive Progressive, one of the largest auto insurance companies in the United States, positions itself as a potential winner in an environment of rising rates.
Its straightforward, technology-driven business strategy has proven to be more efficient than competitors, enabling competitive pricing and steady market share gains.
Decades of investments in technology not only improve direct interaction with consumers, but optimize operational efficiency.
Diversification in the US home insurance market in recent years has significantly expanded their addressable market.
The negative correlation of -0.362 with US government bonds, represented by the IEF ETF, suggests that Progressive could thrive in an environment of rising bond yields.
2) Centene Corporation Healthcare insurance companies can also benefit from a possible new interest rate increase.
Centene Corporation, a diversified healthcare company, provides services to government-sponsored healthcare programs targeting the underinsured and uninsured.
According to analysts, Centene shows solid financial performance and garners several buy recommendations.
The forecast earnings growth of 15.1% per year, combined with an average earnings expectation of 5.6%, makes Centene quite attractive to investors.
Its expansion strategy and focus on market stability in the Florida Medicaid program make it a stock to consider in a rising rate environment.
3) Pfizer Despite the challenges faced in 2023, Pfizer presents investors with a number of reasons for interest.
With a 5.92% dividend yield, shares trading at less than 13 times forward earnings, and a robust clinical pipeline, the pharmaceutical company boasts a very attractive profile.
The recent acquisition of Seagen places it among the leading producers of antibody conjugates.
The capital allocation strategy, oriented towards the benefit of shareholders with growing dividends and regular share repurchases, helps to consolidate Pfizer's position in the market.
However, it is important to highlight that the growth strategy is not without risk, with some recent acquisitions likely to be tested by competition.
In conclusion, despite the uncertain economic climate, there are investment opportunities that may emerge as rates rise.
Diversifying your portfolio with resilient stocks with solid growth prospects could be a wise strategy in this environment.
However, investors should carefully monitor market developments and adapt their strategies accordingly.
|DISCLAIMER The information and considerations contained in this article should not be used as the sole or principal basis on which to make investment decisions.
The reader maintains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.|

Author: Hermes A.I.

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