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

InvestorPlace06-17

Watch out for these three stocks at risk if the Fed doesn’t cut rates at least once this year. The costs could be too high for them. SolarEdge Technologies (SEDG): The residential solar inverter maker...

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The costs could be too high for them.\nSolarEdge Technologies (SEDG): The residential solar inverter maker...</p>\n\n<a href=\"https://investorplace.com/2024/06/watch-out-3-stocks-at-risk-if-the-fed-doesnt-cut-rates-this-year/\">Source Link</a>\n\n</div>\n","source":"investorplace_stock_picks","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Watch Out! 3 Stocks at Risk If the Fed Doesn’t Cut Rates This Year</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWatch Out! 3 Stocks at Risk If the Fed Doesn’t Cut Rates This Year\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-17 04:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2024/06/watch-out-3-stocks-at-risk-if-the-fed-doesnt-cut-rates-this-year/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Watch out for these three stocks at risk if the Fed doesn’t cut rates at least once this year. The costs could be too high for them.\nSolarEdge Technologies (SEDG): The residential solar inverter maker...</p>\n\n<a href=\"https://investorplace.com/2024/06/watch-out-3-stocks-at-risk-if-the-fed-doesnt-cut-rates-this-year/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SEDG","symbol_name":"SolarEdge Technologies, Inc.","start_time":0,"source_url":"https://investorplace.com/2024/06/watch-out-3-stocks-at-risk-if-the-fed-doesnt-cut-rates-this-year/","article_id":"2444088989","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2444088989","pubTimestamp":1718568000,"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"Higher-for-longer has hurt, but beware of these three stocks at risk if the Fed doesn't cut rates at least once in 2024.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SEDG":"SolarEdge Technologies, Inc.","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","BK4588":"碎股","LU0823414478.USD":"法巴经典能源转换基金","BK4519":"光伏太阳能","PLUG":"普拉格能源","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","AWR":"美洲国家水务","BK4172":"水公用事业","BK4096":"电气部件与设备","LU1548497426.USD":"安联环球人工智能AT Acc","BK4135":"资产管理与托管银行","BK4017":"黄金","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","BK4541":"氢能源","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","AC":"Associated Capital Group, Inc.","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","ENPH":"Enphase Energy","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","DC":"Dakota Gold Corp","BK4585":"ETF&股票定投概念","LU0082616367.USD":"摩根大通美国科技A（dist）","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","BK4147":"半导体设备"},"translate_title":"小心！如果美联储今年不降息，3只股票将面临风险","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ENPH":1,"SEDG":1,"PLUG":1,"AC":1,"DC":1,"AWR":1},"content_text":"Watch out for these three stocks at risk if the Fed doesn’t cut rates at least once this year. The costs could be too high for them.\nSolarEdge Technologies (SEDG): The residential solar inverter maker is finding high rates are killing demand for new solar installations.\nPlug Power (PLUG): Having become a vertically integrated hydrogen fuel stock, the costs of infrastructure projects are too high.\nAmerican States Water (AWR): Water utilities must upgrade, maintain and repair their facilities regardless of whether rates are high.\n\n\n\n\n\n \n\nSource: Adam Vilimek / Shutterstock.com\n\n\n\nThe Federal Reserve signaled it may make one cut in interest rates this year. Although it left rates unchanged after its most recent Federal Open Market Committee meeting, its post-meeting statement said the following. \n“In recent months, there has been modest further progress toward the Committee’s 2 percent inflation objective.”\nThat gives analysts hope we may see one cut in 2024 with the Fed becoming more aggressive about cuts next year. I wouldn’t hold my breath, but it means there are several stocks at risk if the Fed doesn’t cut rates this year.\nThey tend to be ones more sensitive to making it more expensive to borrow money. While no business enjoys that, certain industries are especially vulnerable because of high capital costs or dampened demand for projects.\nThe three companies below are stocks especially at-risk of disruption by the Fed’s higher-for-longer policies.\nSolarEdge Technologies (SEDG)\nSource: IgorGolovniov / Shutterstock.comResidential solar inverter manufacturer SolarEdge Technologies (NASDAQ:SEDG) is particularly susceptible to elevated interest rates because it makes selling new solar installations more difficult. Shares of the inverter maker are down 52% this year and 84% over the last 12 months.\nSolarEdge Technologies is the second-largest inverter maker behind Enphase Energy (NASDAQ:ENPH). Inverters An inverter converts a solar panel’s direct current (DC) into alternating current (AC) that can be used in a house. But solar installations are expensive and high interest rates jack up the cost even more dampening demand for them.\nFirst-quarter revenue plunged 78% from the year-ago period to $316 million. Sales are also down 31% from 2022. The last time sales were this low was in 2019 before the pandemic. Although it is moving into the spring, which is typically a stronger month for installations, investors shouldn’t expect to see any appreciable gains. They might be up sequentially, but not year-over-year (YOY).\nLook for SolarEdge Technologies stock to languish until the Fed makes good on its interest rate cuts. \nPlug Power (PLUG)\nSource: T. Schneider / Shutterstock.comHydrogen fuel leader Plug Power (NASDAQ:PLUG) is doing little better than SolarEdge. Its stock is down 36% in 2024 and 74% over the past year. \nAlternative fuel vehicles are suffering from a slowdown in demand as the electric vehicle (EV) industry is recovering. But green fuels like hydrogen have a tougher sell than battery electrics. There is even less infrastructure for refueling in place than with EVs and high interest rates make it more difficult for Plug Power to thrive.\nThe hydrogen fuel cell stock has had a host of issues confronting it over the years beyond interest rates that have hurt the stock. Yet, its decision to become a one-stop shop for hydrogen is particularly vexing.\nPlug Power became a vertically integrated industry leader to drive the adoption of fuel cells. However, the capital-intensive nature of providing the technology and the infrastructure itself sets up high hurdles it is finding difficult to surmount. First-quarter revenue was cut nearly in half from last year, but its costs remained essentially flat. Net losses grew from 35 cents per share to 46 cents per share.\nBut, interest rate cuts should help. Having positioned itself as a one-stop shop, it is the sole vertically integrated green fuel stock in the industry. Investors might want to wait until 2025 for the series of interest rate cuts the Fed envisions before buying Plug Power stock.\nAmerican States Water (AWR)\nSource: Sambulov Yevgeniy/ShutterStock.comUtilities of all stripes find high-rate environments difficult to navigate but water utilities like American States Water (NYSE:AWR) have been taking it on the chin. AWR stock is down 13% this year and 20% for the past year.\nThat’s because upgrades and maintenance to infrastructure can’t be held off because clean water is essential. Projects must be implemented regardless of the environment. The utilities are at the mercy of rate regulators to approve price increases. While the rate hikes do tend to eventually go through, they may be delayed a year or more inflating the utility’s borrowing costs and causing significant expense increases.\nAmerican States Water serves over 1 million residential customers across nine states. It also serves 11 military bases under 50-year contracts with the U.S. government. Unlike electric utilities that are also serving specialized markets such as data centers that are seeing phenomenal growth. Those utilities are implementing artificial intelligence technology to help moderate the costs of energy usage. It makes them coattail beneficiaries of the industry’s growth.\nThe saving grace is that AWR has paid a dividend for 86 consecutive years and raised the payout for 69 straight years. Investors can at least enjoy being paid to wait for the Fed to reverse its rate hikes.\nOn the date of publication, Rich Duprey held a LONG position in AWR stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.\nRich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.Energy, Hydrogen, Renewable Energy, Solar, Utility\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSubmit\n\n\n\n\n\n\n\nArticle printed from InvestorPlace Media, https://investorplace.com/2024/06/watch-out-3-stocks-at-risk-if-the-fed-doesnt-cut-rates-this-year/.\n©2024 InvestorPlace Media, LLC","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2444088989"}