Top 3 stocks in times of high interest rates

Crispus is a financial analyst at invezz, covering the equity, cryptocurrency and foreign exchange markets. He is an experienced analyst… Read more.

Interest rates will rise parabolically in the coming months as the federal reserve tries to lower inflation. In a statement tuesday, lael brainard said the bank is also likely to begin quantitative tightening (QT) as it seeks to reduce its balance sheet. Here are some of the best stocks to buy in times of high interest rates.

Bancfirst

Regional banks will do better than national giants like morgan stanley and JP morgan. That's because most of these banks make their money on loans. They do not have extensive investment banking and asset management services. In addition, the large banks will probably have difficulties as the number and value of transactions decline.

Bancfirst (NYSE: BANF) is a small regional bank with a market value of about 3 billion. $. It provides retail and commercial banking services through its 110 branches in oklahoma.

Bancfirst will do well when interest rates start to rise because the company has a high net interest income (NII) from its portfolio. This means that the company can easily use some of these funds to earn better interest rates if interest rates continue to rise.

It is particularly noteworthy that even before the rise in interest rates, bancfirst's business was doing well. Annual sales increased from 312 mio. $ in 2020 to 316 million. $, while net profit rose to over 167 million. $ almost doubled.

Discover financial services

Discover (NYSE: DFS) is one of the largest financial services companies in the U.S. With a market capitalization of more than 30 billion. $. The company offers credit cards and is a smaller competitor to juggernauts like visa and mastercard.

Discover's share price has been under pressure in recent months as investors worry about the company's slow growth. As a result, the share price has fallen by around 18% since its peak in 2020. The company's interest income of 9.517 billion. $ in 2021 were slightly higher than the 9.2 billion. $ of the year 2020.

As the fed drastically raises its interest rates, discover will therefore be able to shift some of its outstanding balances on credit card loans to generate revenue.

Texas capital bancshares

Texas capital bancshares (NASDAQ: TCBI) is another small bank with about 35 billion in total assets. $ and about 1.600 employees. It has a market capitalization of 2.8 bn. $.

The company generates total revenues of more than 937 mio. $ and a profit of 253 million. $. It is a highly diversified bank that operates in commercial banking, wealth management and investment banking.

Texas capital is a good bank in a high interest rate environment because it has a large amount of money on its balance sheet that it can easily deploy.

  • The u.S. Federal reserve is expected to raise interest rates dramatically in 2022
  • Some companies will benefit in this new normal environment
  • Bancfirst, discover financial and texas capital bank stand to benefit

Interest rates will rise parabolically in the coming months as the U.S. Federal reserve attempts to lower inflation. In a statement tuesday, lael brainard said the bank is also likely to begin quantitative tightening (QT) as it seeks to reduce its balance sheet. Here are some of the best stocks to buy in times of high interest rates.

Bancfirst

Regional banks will do better than national giants like morgan stanley and JP morgan. That's because most of these banks make their money on loans. They do not have extensive investment banking and asset management services. In addition, the big banks are likely to have difficulties as the number and value of deals decline.

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Bancfirst (NYSE: BANF) is a small regional bank with a market value of about $3 billion. $. It provides retail and commercial banking services through its 110 branches in oklahoma.

Bancfirst will do well when interest rates start to rise because the company has a high net interest income (NII) from its portfolio. This means that the company can easily use part of these funds to achieve better interest rates if interest rates continue to rise.

Most notably, bancfirst's business is doing well even before the rise in interest rates. Annual revenue up from 312 million. $ in 2020 to 316 million. $, while the net profit is more than 167 million. $ almost doubled.

Discover financial services

Discover (NYSE: DFS) is one of the largest financial services companies in the U.S. With a market capitalization of over 30 billion euros. $. The company offers credit cards and is a smaller competitor of juggernauts like visa and mastercard.

Discover's share price has been under pressure in recent months as investors worry about the company's slow growth. As a result, the share price has fallen about 18% since its peak in 2020. The company's interest income in the amount of 9.517 billion. $ in 2021 were slightly higher than the 9.2 billion. $ of the year 2020.

As the fed drastically raises its interest rates, discover will therefore be able to shift some of its outstanding balances on credit card loans to generate income.

Texas capital bancshares

Texas capital bancshares (NASDAQ: TCBI) is another small bank with a balance sheet total of about 35 bn. $ and about 1.600 employees. It has a market capitalization of 2.8 billion. $.

The company generates total revenues of more than 937 million euros. $ and a profit of 253 million. $. It is a highly diversified bank that operates in the areas of commercial banking, wealth management and investment banking.

Texas capital is a good bank in a high interest rate environment because it has a large amount of money on its balance sheet that it can easily deploy.

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