XLK - 3 Stocks About to Join the Rate Cut Party | Benzinga
You can think of the S&P 500 and the NASDAQ 100 indexes as the sun that gets the rest of the stock market booming or busting. As these have been making all-time highs lately, you'll notice that not all stocks joined the party. Likely pricing in the potential interest rate cuts that the Federal Reserve (the Fed) is looking to make later this year, some stocks have much catching up to do.
Falling behind the bull run, three stocks stand out as opportunities for you to catch the rally before it gets here. With optimistic earnings per share (EPS) outlooks for this year, price action has yet to reflect the growth that is to come in these names.
Watch for the coming price action and developments in SoFi Technologies Inc. (NASDAQ: SOFI), CleanSpark Inc. (NASDAQ: CLSK), and even Albemarle Co. (NYSE: ALB). This stock-picking strategy is as simple and elegant as can be this cycle, with above-average EPS growth at lower-than-average prices relative to the rest of the market.
The Root of All Profit
Lower interest rates can impact the entire market and even other asset classes like real estate and cryptocurrencies. This is why you can build a proper portfolio around a trend that is more than accepted by the broader markets.
While the timing and size of these rate cuts remains uncertain, the FedWatch tool at ...