Investing.com | Jun 13, 2024 00:50
Inflation came in cooler than expected today, potentially paving the way for a September rate cut. This raises a critical question for investors: Should you recalibrate your portfolio to capitalize on potential rate cuts?
If the disinflationary trend continues, several sectors could see a boost:
InvestingPro's stock screener can help you identify stocks poised to thrive in this new economic environment. Here's how:
By leveraging InvestingPro's tools, you can strategically position your portfolio to potentially profit from a potential rate cut and the evolving economic landscape.
Source: InvestingPro
Based on the results from the screener, here are the top three stocks to buy amid falling inflation.
Leading the pack is Forestar (NYSE:FOR), a U.S. residential lot developer with a market cap of $1.6 billion.
Analysts surveyed by InvestingPro predict a surge exceeding 30% in the next 12 months, pushing the stock price above $40. Even Fair Value analysis confirms its undervalued status, indicating a potential upside of 31.2%.
In the retail sector, JD.com (NASDAQ:JD) stands out as a prime beneficiary of potential interest rate cuts. The Chinese e-commerce giant is poised for significant growth.
Source: InvestingPro
Analysts are bullish, predicting a 38.8% increase from its June 11th price of $29.41. Our Fair Value analysis is even more optimistic, with an intrinsic value of $44.30, suggesting a potential upside of over 50%.
While growth is exciting, stability is crucial during volatile times. Enter Walmart (NYSE:WMT), a "Dividend King" with 29 consecutive years of dividend increases, favored by big investors like Bill Gates and Ray Dalio.
Source: InvestingPro
The recent investments from heavyweights like Bill Gates and Ray Dalio further solidify Walmart's strong position. Additionally, a potential decrease in borrowing costs could boost sales for the retail giant.
Analysts overwhelmingly favor Walmart, with 35 "Buy" ratings compared to just 1 "Sell" rating. Despite its recent 30% growth, experts expect further appreciation, with a target price of $71.96 – nearly 9% higher than the June 11th closing price.
***
Become a Pro: Sign up now! CLICK HERE to join the PRO Community with a significant discount .
Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counseling or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. As a reminder, any type of asset is evaluated from multiple points of view and is highly risky therefore, any investment decision and the associated risk remains with the investor. The author owns shares in the company mentioned.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.