Welcome to Extreme Investor Network, where we provide unique insights and valuable information to help you make informed investment decisions. As we approach this week’s Federal Reserve meeting, investors are anticipating a potential interest rate cut without a recessionary environment.
According to CNBC Pro, historical data shows that stocks have performed well in situations where the Fed has lowered rates without tipping the economy into a recession. In fact, the S&P 500 has seen an average gain of over 18.5% in the year following the first rate cut in a non-recessionary environment.
So, which stocks tend to thrive in these circumstances? CNBC Pro screened the S&P 500 for companies that have historically performed well after a rate cut without a recession. Here are the top 10 gainers:
1. Nike: Leading the pack with a median gain of over 87%, Nike has shown strong potential for growth after a challenging year. Analysts remain bullish on the stock, despite a more modest upside projection of around 15.5%.
2. Walmart: With a median rally of nearly 51%, Walmart has been the best-performing Dow member in 2024. Analysts expect the stock to remain flat over the next year, but many maintain a buy rating based on the company’s solid execution and growth prospects.
3. Paychex: This lesser-known name has seen a 51.5% climb in the 12 months following a rate cut without a recession. While analysts have a hold rating on the stock, it has shown strong potential for growth in the past.
As we await the outcome of the Federal Reserve meeting, it’s important to keep an eye on these and other companies that have historically performed well in similar situations. Stay tuned to Extreme Investor Network for more insights and analysis on the latest market trends and investment opportunities.