Business Insider - Stocks to Keep an Eye on As Feds Raise Rates

14 stocks most likely to surge in a rising rate regime As Fed rate hikes become the dominant narrative driving markets, Toggle ran its system to identify stocks that tend to benefit from rising rates. To start with, the AI system looks at the entire universe of the S&P 500. It then examines each of these constituents individually through every single Fed hiking period and ranks them by the consistency of the subsequent price returns, Szilagyi explained. The system analyzes billions of data points such as current and historical economic reports, earnings, and competitors to arrive at trading ideas and signals. "This is the kind of effort that would probably take five analysts the better part of a week to do, and in our case, we could do it in probably about a minute and a half," he said. The end result is a list of 14 stocks that are "the top of the heap" in terms of their consistency in generating positive returns post-Fed rate hikes. The 14 stocks, along with their tickers, market capitalizations, and typical performance six months after the fourth or final rate hike of the year, are listed below. To be sure, the performance of these stocks could still deviate meaningfully to the upside or downside from their "typical" experience. Investors should still do their own research and consider how the stocks might fit into their portfolios based on their risk tolerance, according to Szilagyi. "With Toggle, it's like having an army of analysts working for you and just tapping on your shoulder when something needs your attention," he said. "It's really for empowering rather than replacing the individual investors."

1. Loews

Markets Insider Ticker: L Market cap: $15.58 billion Typical performance six months after the fourth or final rate hike: 20.16% Source: Toggle

2. Travelers Insurance

Markets Insider Ticker: TRV Market cap: $40.02 billion Typical performance six months after the fourth or final rate hike: 12.05% Source: Toggle

3. Franklin Resources

Markets Insider Ticker: BEN Market cap: $17.67 billion Typical performance six months after the fourth or final rate hike: 22.59% Source: Toggle

4. AvalonBay

Markets Insider Ticker: AVB Market cap: $34.64 billion Typical performance six months after the fourth or final rate hike: 14.04% Source: Toggle

5. Essex Property

Markets Insider Ticker: ESS Market cap: $22.31 billion Typical performance six months after the fourth or final rate hike: 11.93% Source: Toggle

6. Altria

Markets Insider Ticker: MO Market cap: $93.03 billion Typical performance six months after the fourth or final rate hike: 14.70% Source: Toggle

7. Brown-Forman

Markets Insider Ticker: BF.B Market cap: $32.41 billion Typical performance six months after the fourth or final rate hike: 12.55% Source: Toggle

8. Jacobs Engineering

Markets Insider Ticker: J Market cap: $17.08 billion Typical performance six months after the fourth or final rate hike: 11.67% Source: Toggle

9. Boeing

Markets Insider Ticker: BA Market cap: $132.36 billion Typical performance six months after the fourth or final rate hike: 16.24% Source: Toggle

10. AmerisourceBergen

Markets Insider Ticker: ABC Market cap: $28.26 billion Typical performance six months after the fourth or final rate hike: 19.56% Source: Toggle

11. Thermo Fisher Scientific

Markets Insider Ticker: TMO Market cap: $233.62 billion Typical performance six months after the fourth or final rate hike: 16.39% Source: Toggle

12. Merck

Markets Insider Ticker: MRK Market cap: $204.89 billion Typical performance six months after the fourth or final rate hike: 13.83% Source: Toggle

13. Stryker

Markets Insider Ticker: SYK Market cap: $100.29 billion Typical performance six months after the fourth or final rate hike: 12.64% Source: Toggle

14. Humana

Markets Insider Ticker: HUM Market cap: $50.18 billion Typical performance six months after the fourth or final rate hike: 11.47% Source: Toggle