Biggest Rate Cut in 16 Years: 4 Consumer Discretionary Stocks to Buy

Zacks09-20

The Federal Reserve cut interest rates by 50 basis points on Wednesday, its first rate cut since March 2020 and the biggest in more than 16 years. The last time the Fed cut interest rates by half a ...

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The last time the Fed cut interest rates by half a ...</p>\n\n<a href=\"https://finance.yahoo.com/news/biggest-rate-cut-16-years-180000981.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","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>Biggest Rate Cut in 16 Years: 4 Consumer Discretionary Stocks to Buy</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\">\nBiggest Rate Cut in 16 Years: 4 Consumer Discretionary Stocks to Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-20 02:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/biggest-rate-cut-16-years-180000981.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Federal Reserve cut interest rates by 50 basis points on Wednesday, its first rate cut since March 2020 and the biggest in more than 16 years. The last time the Fed cut interest rates by half a ...</p>\n\n<a href=\"https://finance.yahoo.com/news/biggest-rate-cut-16-years-180000981.html\">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":"COOK","symbol_name":"Traeger Inc. (TGPX Holdings I LLC)","start_time":0,"source_url":"https://finance.yahoo.com/news/biggest-rate-cut-16-years-180000981.html","article_id":"2468168214","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/KO5JJ2NNostTSfL3oaeeFg--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/41bf121faeccd5af2e517ea8e3464744"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2468168214","pubTimestamp":1726768800,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The Federal Reserve cut interest rates by 50 basis points on Wednesday, its first rate cut since March 2020 and the biggest in more than 16 years. The last time the Fed cut interest rates by half a percentage point was in 2008, with just an emergency exception during the pandemic.A 50-basis point rate cut will boost the broader economy, with growth stocks likely to gain the most. It would thus be prudent to invest in discretionary stocks. We have narrowed our search to four consumer discretionary stocks such as Traeger, Inc. COOK, Lincoln Educational Services Corporation LINC, Reynolds Consumer Products Inc. REYN and Royal Caribbean Cruises Ltd. RCL with upside for 2024.Each of these stocks has a Zacks Rank #1  or #2  and a Growth Score of A or B. You can seethe complete list of today’s Zacks #1 Rank stocks here.Traeger’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 100% over the past 60 days.C","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"COOK":"Traeger Inc. (TGPX Holdings I LLC)","REYN":"Reynolds Consumer Products, Inc.","BK4585":"ETF&股票定投概念","BK4191":"家用电器","BK4588":"碎股","BK4018":"居家用品","LINC":"林肯教育服务","BK4204":"教育服务","BK4142":"酒店、度假村与豪华游轮","BK4566":"资本集团","BK4517":"邮轮概念","LU1366192091.USD":"ALLIANZ US EQUITY PLUS \"AM\" (USD) INC","BK4539":"次新股","RCL":"皇家加勒比邮轮"},"translate_title":"16年来最大幅度降息：值得买入的4只非必需消费品股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"COOK":1,"RCL":1,"REYN":1,"US7Y.BOND":0.9,"US6M.BOND":0.9,"US5Y.BOND":0.9,"US3Y.BOND":0.9,"US30Y.BOND":0.9,"US2Y.BOND":0.9,"LINC":0.9,"US12M.BOND":0.9,"US10Y.BOND":0.9,"US912797HE00.BOND":0.6,"US912797GW17.BOND":0.6},"content_text":"The Federal Reserve cut interest rates by 50 basis points on Wednesday, its first rate cut since March 2020 and the biggest in more than 16 years. The last time the Fed cut interest rates by half a percentage point was in 2008, with just an emergency exception during the pandemic.\nA 50-basis point rate cut will boost the broader economy, with growth stocks likely to gain the most. It would thus be prudent to invest in discretionary stocks. We have narrowed our search to four consumer discretionary stocks such as Traeger, Inc. COOK, Lincoln Educational Services Corporation LINC, Reynolds Consumer Products Inc. REYN and Royal Caribbean Cruises Ltd. RCL with upside for 2024.\nEach of these stocks has a Zacks Rank #1 (Strong Buy) or #2 (Buy) and a Growth Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.\nLower Interest Rates to Boost Economy\nThe Federal Reserve’s decision to start its rate cut cycle was almost certain. However, the financial community was unsure about the size of the rate cut. A 25-basis point rate cut was almost assured but several market participants were anticipating a half a percentage point rate cut given the soft economic data released ahead of the Federal Open Market Committee meeting.\n\"The committee has gained greater confidence that inflation is moving sustainably toward 2%, and judges that the risks to achieving its employment and inflation goals are roughly in balance,\" the FOMC said in a press release.\nThe benchmark policy rate now ranges between 4.75% and 5.00%, the lowest level since April 2023.\nMoreover, the Fed’s new dot-plot indicates a Fed funds rate at 4.25-4.50% by the year-end, with a full percentage point reduction projected for 2025 and another half-point cut in 2026. This would bring the rate to a final range of 2.75%-3%.\nConsumer Discretionary Stocks to Gain\nConsumer discretionary stocks are considered growth assets, which are inversely related to market interest rates. Growth investors concentrate on stocks that demonstrate rapid earnings or revenue expansion, expecting these factors to drive future stock price increases.\nA rate cut will help companies as it will lower production costs and provide access to inexpensive credit.\nAlso, the U.S. economy is growing at a solid pace. U.S. GDP grew 3% in the second quarter after slowing down in the first quarter. The Atlanta Fed also upwardly revised its third-quarter GDP growth estimate to an annual rate of 3% from the earlier projected rate of 2.5%.\n4 Consumer Discretionary Stocks With Upside Potential:\nTraeger\nTraeger provides wood pellet grills. COOK’s pellet grills utilize wood-fired convection power, owners can grill, smoke, bake, roast, braise and barbecue meals on one cooking system.\nTraeger’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 100% over the past 60 days. COOK currently carries a Zacks Rank #2 and has a Growth Score of A.\nImage Source: Zacks Investment Research\nLincoln Educational Services\nLincoln Educational Services is a leading and diversified for-profit provider of career-oriented post-secondary education headquartered in West Orange, New Jersey. LINC offers recent high school graduates and working adults degree and diploma programs in four principal areas of study: automotive technology, allied health (which includes programs for medical administrative assistants, medical assistants, pharmacy technicians and massage therapists), skilled trades and business and information technology.\nLincoln Educational Services’ expected earnings growth rate for the current year is 4.1%. The Zacks Consensus Estimate for current-year earnings has improved 6.3% over the past 60 days. LINC currently carries a Zacks Rank #2 and has a Growth Score of A.\nImage Source: Zacks Investment Research\nReynolds Consumer Products\nReynolds Consumer Products is a consumer-branded and private-label products company. REYN produces and sells branded and store-brand products, which include cooking products, waste & storage products and tableware.\nReynolds Consumer Products’ expected earnings growth rate for the current year is 19%. The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the past 60 days. REYN currently carries a Zacks Rank #2 and has a Growth Score of B.\nImage Source: Zacks Investment Research\nRoyal Caribbean Cruises Ltd.\nRoyal Caribbean Cruises owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Additionally, RCL has a 50% investment in a joint venture with TUI AG, which operates the TUI Cruises brand. Royal Caribbean Cruises’ cruise brands primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments.\nRoyal Caribbean Cruises’ expected earnings growth rate for the current year is 71.2%. The Zacks Consensus Estimate for current-year earnings has improved 3.9% over the past 60 days. RCL currently has a Zacks Rank #2 and a Growth Score of A.\nImage Source: Zacks Investment Research\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nRoyal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report\nLincoln Educational Services Corporation (LINC) : Free Stock Analysis Report\nReynolds Consumer Products Inc. (REYN) : Free Stock Analysis Report\nTraeger, Inc. (COOK) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","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":"4.29.1","shortVersion":"4.29.1","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/2468168214"}