5 stocks to explore as investors brace for higher interest rates

In his annual policy speech at the Jackson Hole Symposium, Federal Reserve’s Chair Jerome Powell indicated that the central bank would continue with its aggressive policies to contain the decade-high inflation in the country. While a higher interest rate hike rattles the stock market and the economy, certain sectors flourish in such times.

Stocks like Marathon Petroleum Corporation (NYSE: MPC), General Motors Company (NYSE: GM), and Morgan Stanley (NYSE: MS) could be explored in the current situation.

Let’s look at the list of stocks curated by Kalkine Media® and see their performances:

Marathon Petroleum Corporation (NYSE: MPC)

The US company is involved in petroleum refining, marketing, and transportation. It runs 13 refineries in the mid-continent, Gulf coast, and West coast of the United States.

Marathon Petroleum has a market value of US$ 52.1 billion, and its price-to-earnings (P/E) ratio is 7.05.

The company announced a quarterly dividend of US$ 0.58 per share, and the next payable date is September 12, 2022.

MPC stock surged by almost 59 per cent year-to-date (YTD), and it grew over 13 per cent over the last month.  It touched its 52-week high of US$ 114.35 on June 8 2022, while it tanked to its 52-week low of US$ 56.08 on September 20 2021.

In its Q2 2022 earnings, Marathon Petroleum Corporation’s net income attributable to MPC was US$ 5.9 billion, and the adjusted net income was US$ 5.7 billion.

The adjusted EBITDA of Marathon Petroleum was US$ 9.1 billion in the second quarter of 2022.

SBA Communications Corporation (NASDAQ: SBAC)

SBA Communications Corporation is a US real estate investment trust that runs wireless infrastructure in all regions of the country, Canada, and South Africa. The company is gaining from the global deployment of 5G networks.

SBA Communications has a market valuation of US$ 35.7 billion, and the company distributed a quarterly dividend of US$ 0.71 per share.

Shares of SBA Communications rose 4.29 per cent over the past six months. According to the data on Refinitiv, SBAC stock had a Relative Strength Index (RSI) value of 43.76 as of August 29, 2022, which could mean that the stock is volatile.

In its second quarter 2022 financial results, SBA Communications posted a net income of US$ 69.2 million, and the company earned a total revenue of US$ 652 million, which was a 13.3 per cent growth YoY.

AllianceBernstein Holding L.P. (NYSE: AB)

AllianceBernstein Holding LP (AB) is a global asset management company that provides investment management and research services to global clients.

The US$ 4.3 billion market cap company AllianceBernstein paid a quarterly dividend of US$ 0.71 per share.

AB stock’s RSI value was 50.57 as of August 29, which could mean that it is stable at the moment.

AllianceBernstein said its total net outflows in the second quarter of 2022 were US$ 2.7 billion, compared to net inflows of US$ 11.4 billion in the first quarter of 2022. Its net inflows in the second quarter of 2021 were US$ 6.2 billion.

The company reported US$ 193 million in operating income in Q2 2022.

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General Motors Company (NYSE: GM)

The General Motors Company is a US multinational car manufacturer that remained the undisputed and largest automaker for 77 years until toppled by Toyota in 2008. It is headquartered in Detroit, Michigan.

The US$ 57.4 billion company announced to pay a quarterly dividend of US$ 0.09 per share, and the next payable date is September 15, 2022. GM stock rose over eight per cent over the past month.

General Motors reported a Q2 2022 revenue of US$ 35,759 million, compared to US$ 34,167 million in the second quarter of 2021.

The company’s net income attributable to stockholders in the second quarter was US$ 1,692 million. GM stock had an RSI value of 58.17 on Refinitiv, which depicts a stable stock condition, according to some analysts.

Morgan Stanley (NYSE: MS)

Morgan Stanley is a US multinational investment management and financial services firm with various institutional securities, wealth management, and investment management segments.

Morgan Stanley operates from 1585 Broadway in Midtown Manhattan, New York City. It has a market valuation of US$ 146.5 billion.

The company has a P/E ratio of 11.53, and the MS stock gained 2.9 per cent over the past month.

As per Refinitiv, MS stocks held an RSI value of 49.99 as of August 29. Morgan Stanley registered net revenues of US$ 13.1 billion for the second quarter of 2022.

The net income of Morgan Stanley was US$ 2.5 billion, and in the same period a year ago, its net income was US$ 3.5 billion.

Bottom line

The above stocks could be explored but only after assessing the risk capacity as the market is volatile. Investors should choose their stocks with utmost care to not lose money.