Top 3 Stocks to Watch After the Rate Cut

The Fed recently cut its interest rate by 25 basis points, partially in response to slowing job growth. 

Lower interest rates mean more borrowing power for many, with some businesses standing to gain more than others. Yet not every company is poised for perfection in response to the news, and you only want the best for your portfolio.

Thankfully, that’s where our Zen Ratings system comes in. It measures stocks by 115 carefully selected factors to determine which stocks are worth your consideration. A-rated stocks have had an average annual return of +32.52%, far above the market average.

Here are a few A-rated stocks that might stand to gain in response to the news:

1. Cushman & Wakefield PLC (NYSE: CWK)

The housing and real estate markets often depend on mortgages, and mortgage rates are influenced by the Fed rate. Lower Fed rate, more reasonable opportunities to borrow, and as such commercial real estate services such as those provided by CWK will be more in demand. 

Our Zen Rating system gives it an A not even considering the recent news, and it is in an excellent position, having already risen +60.46% over the last 6 months, rebounding from a dip earlier this year. More specifically, it has a Component Grade of A, indicating a stock that provides consistent results. All of these factors make it one to watch.

2. Tutor Perini Corporation (NYSE:TPC)

Construction and real estate are intrinsically related here (someone has to build the homes to mortgage), and a Fed rate cut typically means good things for the construction industry. In particular, TPC offers general contracting and diverse construction services that a lower rate might help bring along.

On top of this, TPC is a company with a Component Grade of A for both Growth and Momentum, indicating a stock that is on the rise and yet still may have great room to grow. 

3. Limbach Holdings Inc Stock (NASDAQ: LMB)

Another construction contender for your portfolio’s consideration, LMB is an integrated building systems company based in the US. Focusing partially on systems and maintenance work, there’s no shortage of need for its services.

And while there has been a downturn in the share price over the last few months (see below), given the current news, it might now be a good time to buy the dip. Working with everything from retail properties to resorts, LMB isn’t likely to be hit by a downturn of any particular construction niche, and it’s a longstanding company that has dealt with downturns and upturns alike.

Given how quickly things can turn around with the rate (or any news story), you’ll want to keep a close watch on these stocks and any in your portfolio. For that, you want WallStreetZen Premium. With it, you will have all the fundamental information and analysis you need, an unlimited watchlist, and access to premium ideas pages that may provide a new perspective on your portfolio.

And for those who can’t watch the news 24/7 and want a more guided approach, we have Zen Investor. With it, you’ll receive regular updates on a carefully selected model portfolio and commentary from our own Steve Reitmeister, who has more than 40 years of investing experience under his belt.

What to Do Next?

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