UBS highlights 30 stocks poised for potential moves after the Fed’s expected rate cut

The Federal Reserve is poised to lower interest rates this afternoon by either 25-basis points or 50-basis points, and UBS highlighted 30 S&P stocks that may be in a position to observe noticeable moves.

The investment bank said there is an opportunity for a potential upside move in non-earnings small-cap stocks against a backdrop where the Fed lowers interest rates.

“Our work indicates that higher price volatility, lower ROE stocks tend to outperform when rates decline. Smaller companies also benefit most, with small caps outperforming on down rate days,” UBS stated in an investor note on Wednesday.

Highlighted below are 30 stocks that UBS spotlighted that sit inside the S&P 500 (SP500) that it says fits the higher price volatility, lower ROE small size stocks spectrum.

• EQT Corp (EQT)
• Albemarle Corp. (ALB)
• FMC Corp. (FMC)
• Mosaic Co. (MOS)
• Franklin Resources (BEN)
• American Airlines Group (AAL)
• Western Digital Corp. (WDC)
• Southwest Airlines (LUV)
• Seagate Technology Holdings (STX)
• Dayforce (DAY)
• Qorvo (QRVO)
• Etsy (ETSY)
• Match Group (MTCH)
• Bath & Body Works (BBWI)
• Warner Bros. Discovery (WBD)
• Caesars Entertainment (CZR)
• Vistra Corp. (VST)
• Walgreens Boots Alliance (WBA)
• Eversource Energy (ES)
• Dollar Tree (DLTR)
• AES Corp. (AES)
• Hormel Foods Corp. (HRL)
• Alexandria Real Estate Equities (ARE)
• Catalent Health Care (CTLT)
• SBA Communications Corp. (SBAC)
• Bio-Rad Laboratories (BIO)
• BXP (BXP)
• Moderna (MRNA)
• Invesco Ltd (IVZ)
• KeyCorp (KEY)

Separately, the financial institution also indicated that it sits in the 25-basis point rate cut camp, saying: “We expect a 25 bp rate cut at the September FOMC meeting.”