The Fed has announced that there will be rate hikes this year. We are not sure how many but there is talk that the central bank will be more aggressive. This comes as inflation continues to be a huge issue in the US.
There are many stocks to buy in anticipation of a FED rate hike. We have picked a few here below and here is why:
PacWest Bancorp
Based in California, PacWest Bancorp (NASDAQ:PACW) is a financial services company that offers both retail and corporate banking. It is owned by Pacific Western but it mostly targets small and medium scale entities. With rate hikes, traditional financial services companies benefit more.
Source – TradingView
Also, earnings for PacWest look good. In fact, the bank saw first-quarter earnings per share of around $1.18, way higher than Wall Street estimates of $0.16. With Fed rate hikes, we expect more successes in PacWest’s bottom line.
Besides, you can also expect to earn a decent dividend payment from the bank in the near term. At press time, the company’s stock was trading at $51.05.
Capital One Financial Corporation
Capital One Financial Corporation (NYSE:COF) is one of the biggest banks and financial services companies in the US. It is based in Virginia and last year, the company announced over $8 billion in revenue for Q4.
Analysts see the company’s stock surging towards $200 by the end of the year. It will also be boosted by rate hikes no doubt. Right now it is trading at $158.89.
The post Top 2 stocks to consider before Fed interest rate hikes this year appeared first on Invezz.
