Watch Out! 3 Stocks at Risk If the Fed Doesn't Cut Rates This Year

Federal Reserve Interest Rate Outlook - The Federal Reserve indicated a potential interest rate cut this year, although rates were left unchanged after the recent Federal Open Market Committee meeting [1] - Analysts are hopeful for one cut in 2024, with expectations of more aggressive cuts in the following year [1] - Certain stocks are at risk if the Fed does not implement rate cuts, particularly those sensitive to borrowing costs [1] SolarEdge Technologies (SEDG) - SolarEdge Technologies, a residential solar inverter manufacturer, is highly affected by elevated interest rates, leading to a 52% decline in shares this year and an 84% drop over the past 12 months [2][3] - The company's first-quarter revenue fell 78% year-over-year to $316 million, marking the lowest sales since 2019 [3] - Demand for solar installations is dampened due to high costs exacerbated by interest rates, with no significant year-over-year gains expected in the near term [3] Plug Power (PLUG) - Plug Power, a leader in hydrogen fuel, has seen its stock decrease by 36% in 2024 and 74% over the past year [5][6] - The company faces challenges due to a slowdown in demand for alternative fuel vehicles and high interest rates, which complicate its operations [5] - First-quarter revenue was nearly halved compared to the previous year, while net losses increased from 35 cents to 46 cents per share [6] American States Water (AWR) - American States Water, a water utility, has experienced a 13% decline in stock this year and a 20% drop over the past year due to high-rate environments [7][8] - The company must continue infrastructure upgrades and maintenance regardless of economic conditions, leading to increased borrowing costs [7] - Despite challenges, AWR has maintained a dividend for 86 consecutive years, providing some return to investors while awaiting potential rate cuts [8]