Now that the market is shifting due to the new path the Federal Reserve (the Fed) has undertaken recently, cutting interest rates and starting a new monetary policy easing cycle, investors need to re-tune their preferences for potential picks in their portfolios moving forward. Growth, income, and market capitalization growth are some of the factors that should be at the top of this new preference list.
With this in mind, the homework has been done regarding hunting for stocks that fit these descriptions so that investors can focus on weighing their options rather than going down rabbit holes. Fitting this list, investors will see names like Knight-Swift Transportation Holdings Inc. (NYSE: KNX) in the transportation sector, then PotlatchDeltic Co. (NASDAQ: PCH) as support in the construction industry, and finally, an energy sector play in Brookfield Renewable Partners (NYSE: BEP).
All three of these picks share the same factors: market capitalizations below $10 billion to be considered middle caps and not large caps, enough earnings per share (EPS) growth forecasts to turn them into large caps so that investors can enjoy the ride in this new cycle, and the added bonus of enjoying enough dividend income to cushion any inflation effects or volatility that this new easing cycle might bring.
Transportation Leads the Way: Knight-Swift Stock Poised for a Breakout
Two sectors typically act as gauges for the economy: housing and trucking. In this case, Knight-Swift stock offers insight into the trucking industry, and it's starting to ...
