{"id":16353,"date":"2025-09-11T17:27:08","date_gmt":"2025-09-11T17:27:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/16353\/"},"modified":"2025-09-11T17:27:08","modified_gmt":"2025-09-11T17:27:08","slug":"these-stocks-may-get-the-biggest-boost-if-the-fed-drives-rates-lower","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/16353\/","title":{"rendered":"These stocks may get the biggest boost if the Fed drives rates lower"},"content":{"rendered":"<p>Stocks such as H.B. Fuller and Wyndham Hotels &amp; Resorts that have a high proportion of floating rate debt on their balance sheets could win big once short-term interest rates come down. Data pointing to a potentially weaker economy \u2014 initial jobless claims this week and August payrolls last week \u2014 briefly drove down the 10-year Treasury yield to 4.00% on Thursday, the lowest since higher tariffs were announced in April. Now the market is pricing in an 89% probability that the Federal Reserve will lower its benchmark federal funds rate a quarter percentage point at a policy meeting next week, and 11% odds of a half-point reduction, based on interest rate futures used in the CME&#8217;s FedWatch Tool. A rate cut from the U.S. central bank might disproportionately benefit companies with a higher proportion of floating rate debt, lowering the cost of their short-term borrowings. Companies with a smaller market value generally tend to have more floating rate debt than larger businesses. Earlier this month, Goldman Sachs published a screen of stocks with the highest proportion of floating rate debt, including the following companies: One stock on the list was adhesive manufacturer H.B. Fuller, carrying total debt of about $2.1 billion. Shares of the St. Paul, Minnesota-based chemical maker have fallen 9% this year, through Wednesday. Analysts are mixed in their opinion of H.B. Fuller, with two analysts covering the stock rating it a strong buy or buy, one as a hold and another at underperform, according to data from LSEG. The average analyst price target implies upside of about 16%. Another stock Goldman Sachs highlighted as possibly benefiting from easier borrowing costs was hospitality company Wyndham Hotels &amp; Resorts, down 16% this year. The lodging company currently has total debt of about $2.5 billion. Wall Street analysts are overwhelmingly bullish on Wyndham, with 14 analysts rating the stock as either a strong buy or buy, with only one giving it a hold. With total debt of about $6.8 billion, food services provider Aramark has the highest proportion of floating rate debt on Goldman Sachs&#8217; list. Shares have gained 2% this year. Most analysts covering Philadelphia-based Aramark are positive on the stock, with 13 rating it as either a strong buy or buy and only two calling it a hold. Other names on Goldman Sachs&#8217; list included Capri Holdings , Sandisk , Informatica and Elanco Animal Health . ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )<\/p>\n","protected":false},"excerpt":{"rendered":"Stocks such as H.B. Fuller and Wyndham Hotels &amp; Resorts that have a high proportion of floating rate&hellip;\n","protected":false},"author":2,"featured_media":16354,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[18379,138,553,18380,18383,18376,12964,18377,18382,2338,220,111,139,69,18381,2340,18378],"class_list":["post-16353","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-aramark","tag-business","tag-business-news","tag-capri-holdings-ltd","tag-elanco-animal-health-inc","tag-goldman-sachs-bdc-inc","tag-goldman-sachs-group-inc","tag-h-b-fuller-company","tag-informatica-inc","tag-investment-strategy","tag-markets","tag-new-zealand","tag-newzealand","tag-nz","tag-sandisk-corp","tag-stock-markets","tag-wyndham-hotels-resorts-inc"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/16353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=16353"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/16353\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/16354"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=16353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=16353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=16353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}