Beneficial Stocks for Rising Interest Rates in the USA

 Beneficial Stocks for Rising Interest Rates in the USA

Beneficial Stocks for Rising Interest Rates in the USA(Image-Getty)

Introduction:

When designing an investment portfolio with altered interest rates in mind, it is crucial to identify growth opportunities carefully. In the context of the stock market, certain industries stand to benefit from higher interest rates in the economy, presenting advantageous prospects for investors. This article presents a list of US stocks that investors should consider when interest rates are expected to rise.

Bank of America (BAC):

Bank of America, a leading global financial institution, is regarded as one of the best stocks for investment in times of rising interest rates. The bank experiences enhanced customer activities, leading to an upsurge in net interest margin due to increased deposits and loans. With a current net interest margin of approximately 1.69%, the stock price stands at $31.98, and analysts predict it to reach $40.80 by 2025. Investing in Bank of America presents an opportunity for effective benefits in anticipation of future high-interest rates.

Zillow Group (Z):

Zillow Group, a prominent tech real-estate marketplace company with around 227.65 million shares outstanding, is another stock to watch during periods of rising interest rates. As interest rates increase, property values tend to decline, creating an opportunity for investors to benefit from this trend. The current stock price of Zillow Group is $51.54, and it is expected to touch $62.67 by the end of 2025. Investing in Zillow Group could prove to be advantageous for investors, considering the potential growth opportunities presented by declining property prices during high-interest rate periods.

CitiGroup Inc (C):

CitiGroup is another major player in the banking and financial services sector, serving more than 200 million customers across the globe with a strong presence in over 160 locations. The average interest rate of the bank currently stands at 3.40% and is anticipated to rise in the near future, offering potential benefits to investors. With a current stock price of $47.05 and a projected value of $65 to $71.50 by the end of 2025, investing in CitiGroup could be a wise decision for those seeking to capitalize on the expected interest rate hike.

Goldman Sachs Group Inc (GS):

Established in 1869, Goldman Sachs Group Inc (GS) is a leading global investment banking company. Currently boasting a net interest margin of approximately 5.08%, the company's net interest margin is projected to increase further in the near future, presenting advantages to shareholders. With the current stock price at $351.96 and an expected value of $406.29, investing in GS stocks could be a beneficial move in light of the anticipated interest rate changes.

JPMorgan Chase & Co. (JPM):

JPMorgan Chase & Co., a prominent global financial service provider with assets of approximately $2.6 trillion, is another key player for investors to consider. The bank's current interest rate is around 3.8%, and if the Federal Reserve continues to raise interest rates, an increase is expected in the near future. For investors seeking long-term growth and profit opportunities, investing in JPMorgan Chase & Co. could be advantageous.

Conclusion:

Investors looking for long-term benefits should take note of the potential advantages offered by rising interest rates. Stocks of JPMorgan Chase, CitiGroup, Zillow Group, Bank of America, and Goldman Sachs Group are among the good options to consider for investment during periods of rising interest rates in the USA. By carefully navigating the market, investors can position themselves to benefit from these changing economic conditions.