JPMorgan Names 40 Companies for a Higher-Rate Stock Basket

JPMorgan has named 40 companies for a stock basket built around characteristics the bank associates with an elevated-rate environment. The selection spans several industries and combines financial exposure, debt considerations and consumer demand in its screening criteria.

For financial firms, asset-sensitive lending or client funds can support net interest income. Other criteria include companies that finance their own growth with minimal debt pressure and businesses with differentiated consumer demand that supports revenue resilience. The basket thus brings together rate-sensitive cash generation, financing capacity and demand-related traits.

The selected groups include financial institutions, oil producers, auto-parts retailers, waste-management businesses, cash-rich consumer firms and selected technology companies. The 40 tickers are IMAX, NYT, ETR, BAC, C, XOM, ADP, AZO, CVX, WCN, KLAC, CMG, BWA, CDNS, ADM, EOG, SNPS, WM, PAYX, ORLY, RNR, MOH, CME, MIDD, MET, RSG, LNC, LAMR, ARCC, AVGO, PAYC, TSLX, HQY, APPF, FHB, GTX, BXSL, NXT, CAVA and MWH.

The criteria describe different ways companies may fit the basket’s higher-rate focus. Lending and client funds are relevant to financial firms’ net interest income, while self-funded growth with limited debt pressure and resilient consumer demand address other business characteristics. The selection includes companies from financial, energy, consumer and technology sectors rather than concentrating on one industry.