📈 Buy These Interest Rate Stocks

These benefit the most from interest rate decreases.

Interest Rate-Sensitive Names

Let’s take a look at a few stocks that benefit from interest rates dropping. These have potential to sustain long-term moves due to interest rates dropping.

UPST

Let’s start with UPST. This is a “buy now pay later” company. They lend money to consumers for purchases, which are then paid back to the company over time with interest.

When interest rates drop, this means that they are borrowing money at a cheaper rate, but they are lending it at the same rate. Therefore, they see a significant increase to their bottom line as a result of interest rates decreasing.

The chart looks beautiful and is primed for a breakout.

RKT

RKT is Rocket Companies, which provides mortgages to consumers. With interest rate drops, you are going to see an uptick in mortgage refinancing, which should substantially benefit the company.

You can see that the stock has already made a large move after Powell signaled last week that cuts were coming. I do still think that this has legs so keep an eye on it.

DLTR

Finally let’s look at TREE, which is LendingTree. Similarly to UPST, they are a money lender. They benefit in the same way: they are able to borrow money at a lower rate than in the past, while still lending it out to consumers at a higher rate.

Therefore, they benefit from interest rate cuts as well. This one hasn’t made an outsized move yet so it is another good one to keep an eye on.

I share additional interest rate-sensitive names that I am buying in this video: