It can be difficult to find consistent returns amid turbulent stock markets and soaring Treasury yields. However, there are a number of names that have proven beneficial in this environment. Stocks have been volatile in recent weeks, as investors anticipate the Federal Reserve’s next move. The latest sizzling inflation report dashed investors’ hopes for a more docile Fed, which has raised interest rates four times this year. The central bank, which begins its September meeting on Tuesday, is expected to announce a 0.75 percentage point rate increase on Wednesday. Meanwhile, bond yields have spiked, with 2-year Treasuries hitting a 15-year high and trading near 10-year levels not seen since 2011. To find the index companies The best and most consistent S&P 500 in an environment like this, CNBC Pro looked at the 10 biggest monthly movements in 10-year Treasury yields over the past five years. According to FactSet data, those stocks had the biggest average percentage gain over the 10 months of that spike. They are also consistent, losing no more than 5% in any month with higher rates. Energy stocks were disqualified due to their only big move over the past 12 months. Here are the top 10 stocks that are poised to outperform as the Fed continues to raise rates. Topping the list are agricultural firm Archer-Daniels-Midland and healthcare provider McKesson Corporation, both of which posted an average 5.4% gain over the 10-month spike in interest rates on Stocks. Silver 10 years. Archer-Daniels-Midland, up 27% year over year, posted quarterly earnings per share and revenue at the end of July, beating Wall Street estimates. McKesson Group is up nearly 40% by 2022. On Monday, the company announced it would acquire private pharmaceutical technology company Rx Savings Solutions for $875 million. A handful of financial stocks also cut. FLEETCOR Technologies had an average gain of 4.4% and Hartford Financial Services stock had an average gain of 4.3%. Commercial line insurer WR Berkley posted an average gain of 2.6% over 10 months of rate hikes. Meanwhile, the real estate investment trust Host Hotels & Resorts had an average increase of 3.1%. FLEETCOR and Hartford Financial are both down this year, about 11% and 6% respectively. As of now, WR Berkley is up 20% while Host Hotels & Resorts is up around 0.5%. Higher interest rates are generally a positive development for insurance companies and banks. Insurers benefit from rising bond portfolio yields as they uncover newer problems. Meanwhile, banks get an increase in net interest income – that is, the difference between the money institutions make on interest-earning assets and the cost of paying interest on deposits to customers. Host Hotels & Resorts was recently added to Goldman Sachs’ ROE Growth basket, containing 50 stocks with the highest consensus projected ROE growth over the next 12 months. ROE is a widely used metric to gauge a company’s profitability and is a measure of a company’s net income divided by shareholders’ equity.
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