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Goldman Sachs analysts published a list of the top 50 stocks with the highest sensitivity to interest rates changes.
The basket consists of S&P 500 (SP500) stocks with the highest positive stock price sensitivity to changes in the nominal 10-year US Treasury yield (US10Y).
Goldman economists expect disinflation to continue, leading to rate cuts later this year. However, the delayed interest rate cut outlook should constrain equity valuations.
“Stocks can continue to rally if higher-for-longer interest rates are driven by resilient economic growth as opposed to hawkish policy,” analysts, led by David J. Kostin, wrote. “However, during the past few weeks, the driver of rates has shifted from better growth to hawkish monetary policy concerns, which has been more difficult for stocks to digest.”
These are the constituents of the “Interest Rate Sensitive” basket within each S&P sector, with data as of April 25:
Consumer discretionary (XLY)
- Royal Caribbean Group (RCL) - Rate sensitivity rank: 96%
- Carnival Corp. (CCL) - Rate sensitivity rank: 93%
- Tesla Inc. (TSLA) - Rate sensitivity rank: 91%
- Norwegian Cruise Line Holdings (NCLH) - Rate sensitivity rank: 91%
- Tractor Supply (TSCO) - Rate sensitivity rank: 89%
Consumer staples (XLP)
- Bunge Global SA (BG) - Rate sensitivity rank: 90%
- Archer-Daniels-Midland (ADM) - Rate sensitivity rank: 81%
- Constellation Brands (STZ) - Rate sensitivity rank: 74%
Energy (XLE)
Real estate (XLRE)
- Boston Properties (BXP) - Rate sensitivity rank: 67%
Utilities (XLU)
- NRG Energy Inc. (NRG) - Rate sensitivity rank: 84%
Financials (XLF)
- Comerica Inc. (CMA) - Rate sensitivity rank: 100%
- KeyCorp. (KEY) - Rate sensitivity rank: 99%
- Huntington Bancshares (HBAN) - Rate sensitivity rank: 98%
- MetLife Inc. (MET) - Rate sensitivity rank: 97%
- Charles Schwab (SCHW) - Rate sensitivity rank: 96%
- American International Group (AIG) - Rate sensitivity rank: 96%
- Raymond James Financial (RJF) - Rate sensitivity rank: 95%
Health care (XLV)
- Cigna Group (CI) - Rate sensitivity rank: 78%
- Elevance Health (ELV) - Rate sensitivity rank: 77%
- Molina Healthcare (MOH) - Rate sensitivity rank: 73%
- CVS Health Corp. (CVS) - Rate sensitivity rank: 71%
- Humana Inc. (HUM) - Rate sensitivity rank: 68%
- DexCom Inc. (DXCM) - Rate sensitivity rank: 67%
Industrials (XLI)
- Northrop Grumman (NOC) - Rate sensitivity rank: 94%
- Paycom Software (PAYC) - Rate sensitivity rank: 94%
- Textron Inc. (TXT) - Rate sensitivity rank: 92%
- Cummins Inc. (CMI) - Rate sensitivity rank: 92%
Information technology (XLK)
- Super Micro Computer (SMCI) - Rate sensitivity rank: 99%
- ON Semiconductor (ON) - Rate sensitivity rank: 87%
- Cisco Systems Inc. (CSCO) - Rate sensitivity rank: 81%
- Western Digital (WDC) - Rate sensitivity rank: 81%
- Palo Alto Networks (PANW) - Rate sensitivity rank: 80%
- Arista Networks (ANET) - Rate sensitivity rank: 79%
- Salesforce Inc. (CRM) - Rate sensitivity rank: 78%
- Jabil Inc. (JBL) - Rate sensitivity rank: 77%
- Seagate Tech Holdings (STX) - Rate sensitivity rank: 77%
- Monolithic Power Systems (MPWR) - Rate sensitivity rank: 75%
- HP Inc. (HPQ) - Rate sensitivity rank: 75%
- Apple Inc. (AAPL) - Rate sensitivity rank: 72%
- Oracle Corp. (ORCL) - Rate sensitivity rank: 72%
- Gartner Inc. (IT) - Rate sensitivity rank: 71%
- CDW Corp. (CDW) - Rate sensitivity rank: 71%
Materials (XLB)
- Mosaic Co. (MOS) - Rate sensitivity rank: 97%
Communication services (XLC)
- Meta Platforms (META) - Rate sensitivity rank: 83%
- Walt Disney (DIS) - Rate sensitivity rank: 81%
- Take-Two Interactive Software (TTWO) - Rate sensitivity rank: 76%
- Alphabet Inc. (GOOGL) - Rate sensitivity rank: 74%
- Fox Corp. (FOXA) - Rate sensitivity rank: 73%