Buy 5 Rate-Sensitive Stocks to Gain From Fed's Aggressive Rate Cut

Core Viewpoint - The Federal Reserve's recent 50 basis point interest rate cut aims to support the economy amid recession fears, impacting various sectors positively, particularly interest rate-sensitive stocks [1][3]. Group 1: Interest Rate Impact on Sectors - The fintech sector is expected to benefit from lower interest rates, as previous high rates hindered technological advancements and product innovation [3]. - Utility companies, which require significant capital for infrastructure upgrades, will gain from reduced borrowing costs due to the rate cut [3]. - The home building industry will see a boost as lower mortgage rates encourage home purchases, driven by the substantial 50 basis point cut [3]. Group 2: Recommended Stocks - PayPal Holdings Inc. (Zacks Rank 1) is experiencing robust growth in total payment volume, with projected EPS growth of 10.8% and revenue growth of 7.6% for the next year [4][5]. - Fidelity National Information Services Inc. (Zacks Rank 2) is benefiting from organic growth in banking solutions, with a projected EPS growth of 11.6% and revenue growth of 4.1% for the next year [7][8]. - American Water Works Co. Inc. (Zacks Rank 2) is expanding through acquisitions and infrastructure investments, with projected EPS growth of 8% and revenue growth of 3.1% for the next year [11][12]. - OGE Energy Corp. (Zacks Rank 2) plans a $6 billion investment to upgrade infrastructure, with projected EPS growth of 5.6% and revenue growth of 11.3% for the next year [14][15]. - M/I Homes Inc. (Zacks Rank 1) is recognized for its strong customer service and innovative designs, with projected EPS growth of 5.6% and revenue growth of 5.1% for the next year [17][19].