Economic Outlook - Wall Street anticipates the beginning of an interest rate cut regime by the Fed in the upcoming September FOMC meeting, with the current rate at a 23-year high of 5.25-5.5% [1] - The CME FedWatch tool indicates a 100% probability of a 25-basis point cut in September, with expectations of a total cut of 50 basis points by November and 75 basis points by December [2] Growth Stocks - Investment in growth stocks is expected to be fruitful, with five highlighted stocks: Ubiquiti Inc. (UI), Spotify Technology S.A. (SPOT), DocuSign Inc. (DOCU), Vertiv Holdings Co. (VRT), and Universal Health Services Inc. (UHS) [3][4] - These stocks have shown positive earnings estimate revisions in the past 60 days and are rated with a Zacks Rank 1 (Strong Buy) and a Growth Score of A or B [4] Ubiquiti Inc. (UI) - Ubiquiti has a strong global business model and a rapidly growing community of service providers, which supports its growth [6] - The company has an expected revenue growth rate of 11.9% and an earnings growth rate of 22.2% for the current year [8] Spotify Technology S.A. (SPOT) - Spotify operates through two segments: Premium and Ad-Supported, providing extensive audio streaming services [10][11] - The expected revenue growth rate for Spotify is 19.4%, with earnings growth exceeding 100% for the current year [12] DocuSign Inc. (DOCU) - DocuSign benefits from strong demand for its eSignature product, with a focus on customer acquisition and international expansion [14] - The expected revenue growth rate for DocuSign is 6.6%, with earnings growth of 15.1% for the current year [15] Vertiv Holdings Co. (VRT) - Vertiv designs and services critical digital infrastructure technologies, with an expected revenue growth rate of 12.8% and earnings growth of 45.8% for the current year [18] Universal Health Services Inc. (UHS) - UHS has seen growth driven by its Acute Care and Behavioral Health segments, with strategic buyouts enhancing its portfolio [20][21] - The expected revenue growth rate for UHS is 9.8%, with earnings growth of 51% for the current year [22]
Buy 5 Large-Cap Growth Stocks for September on Rate Cut Expectations