Invest Like a Hawk: 7 Stocks to Own If the Fed Stays Tough


  • JPMorgan Chase (JPM): JPMorgan Chase enjoys a history of resilience against turmoil.
  • Berkshire Hathaway (BRK-B): Berkshire Hathaway could rise on the proven wisdom of Warren Buffett.
  • Home Depot (HD): HD could benefit from consistent demand for home improvement products amid market uncertainty.
  • Read more about the top stocks to own if the Federal Reserve hikes rates.
Stocks for Fed Hikes - Invest Like a Hawk: 7 Stocks to Own If the Fed Stays Tough

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While earlier discussions focused on the Federal Reserve’s potential interest rate cuts, that’s no longer a surefire proposition, thus warranting consideration for stocks for Fed hikes. Let’s break this matter down.

Prior to this year, the central bank increasingly saw encouraging inflation data; that is, prices were softening, relatively speaking. However, high interest rates means high borrowing costs. So, policymakers sought to be more dovish. Nevertheless, a consistently robust labor market translated to more dollars chasing after fewer goods. That’s inflationary.

Adding to the dilemma, geopolitical tensions have contributed to crude oil price spikes. This situation might worsen, leading to price hikes for all product categories. After all, the world runs on oil. Until goods are shipped via solar-powered trucks and what not, energy markets will play a big role in monetary policy.

To be clear, no one knows what will happen next. Still, investors may want to prep ahead of time with these stocks for Fed hikes (if it goes hawkish).

JPMorgan Chase (JPM)

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Should monetary policy turn surprisingly hawkish, JPMorgan Chase (NYSE:JPM) might be one of the stocks for Fed hikes. No, it’s not exciting in the least. However, it’s a financial juggernaut that has absorbed serious calamities in the past. Further, if interest rates stay elevated or even rise, the institution could benefit from higher profitability.

At the moment, JPM stock has turned volatile, likely due to geopolitical concerns. However, as stated earlier, the company’s history in responding resiliently to various crises facilitates confidence. Plus, JPM could be relatively more attractive. To help juice up the contrarian narrative, JPMorgan offers a forward annual dividend yield of 2.54%.

Generally speaking, the benefit of owing JPM stock centers on its consistent profitability. For fiscal 2024, analysts are looking for earnings per share of $16.12, an improvement over last year’s print of $14.96. Also, revenue could land at $164.24 billion, representing growth of 9.7% from 2023. As I said, it’s boring but reliability may come at a premium at this juncture.

Berkshire Hathaway (BRK-B)

The logo for Berkshire Hathaway displayed on a smartphone screen.
Source: IgorGolovniov /

To stay on course with boring but reliable ideas for stocks for Fed hikes, let’s look at Berkshire Hathaway (NYSE:BRK-B). Founded in 1839 originally as a textile manufacturer, Berkshire is most famous for symbolizing the house that Warren Buffett built. Now, I’m not big on investing on any one metric or person. However, what makes the Oracle of Omaha so special is that he knows how to navigate bull and bear markets.

You know those random stock “geniuses” that you find on every corner of the Internet? They’re mostly famous for making good calls in a bull market. Buffett is different. He’s gone through the hardships and come out stronger and richer. So, when analysts rate BRK-B stock as a moderate buy with an implied double-digit upside potential, it’s quite credible.

Last year, the industrial conglomerate posted an average positive earnings surprise of 7.88%. Its only miss came in the fourth quarter, slipping 1.3% against analysts’ expectations. For the current fiscal year, the consensus EPS target calls for $18.55, a big improvement over last year’s print of $17.19.

Home Depot (HD)

Home Depot (HD) storefront on a sunny day
Source: Jonathan Weiss /

Irrespective of monetary policy, stuff happens to homeowners. That’s one of the reasons why Home Depot (NYSE:HD) is a valuable investment. When things break, either you or a contractor you hire must deal with the problem. More often than not, they’re turning to Home Depot. So, over the long run, it makes a solid case for stocks for Fed hikes.

Also, Home Depot may be relatively insulated from e-commerce rivals. When emergencies break out, you need the materials right away, not four hours later. So, it’s easier to trust HD amid significant disruptions in the broader retail space.

Notably, the company is consistent. Last fiscal year, the home-improvement specialist posted an average positive earnings surprise of 2.1%. No, it’s not a metric that’s busting down doors. However, the company did beat all four of its bottom-line quarterly targets.

For the current fiscal year (2025), experts anticipate EPS of $15.36. That’s up from last year’s print of $15.11. As well, they’re looking for modest revenue growth of 1.1% to $154.4 billion.

Kenvue (KVUE)

Kenvue (KVUE) logo displayed on smartphone with company website in background
Source: Schneider

A consumer health products giant that spun off from Johnson & Johnson (NYSE:JNJ), Kenvue (NYSE:KVUE) has to be one of my favorite ideas for stocks for Fed hikes. Well, I should backtrack and say it’s one of my favorites for any number of reasons. Basically, no matter what happens in the market or the broader economy, stuff happens. Whether we’re talking about the sniffles or papercuts, people need over-the-counter solutions.

Cynically, there may be a greater emphasis on turning to OTC solutions rather than seeking clinical care. That might help boost demand. It’s worth pointing out that in the past fiscal year, Kenvue has been consistent. In Q4, it posted EPS of 31 cents, beating out the consensus target of 28 cents.

For fiscal 2024, covering experts are seeking EPS of $1.14. To be fair, that’s a bit lower than last year’s print of $1.29. However, on the top line, we’re looking at sales of $15.64 billion, up from last year’s $15.44 billion. And in fiscal 2025, the top line could rise to $16.19 billion.

Realty Income (O)

realty income logo highlighted by a magnifying glass on a web browser
Source: Shutterstock

A hawkish central bank isn’t great for consumer confidence. That’s because the cost of borrowing rises, which crimps discretionary retail demand. Nevertheless, people still need to shop for stuff, the essentials and otherwise. Therefore, Realty Income (NYSE:O) could be a shrewd idea. Structured as a real estate investment trust or REIT, Realty owns a massive retail footprint.

In some ways, you can look at the REIT as being a commercial landlord. For full disclosure, the business can be shaky sometimes. Last year, the average earnings surprise came out to 3.63% below parity (or below analysts’ expectations). However, the attractive component is the company’s forward annual dividend yield of 6.07%. It’s also paid monthly.

For fiscal 2024, analysts anticipate EPS of $1.53. That’s substantially higher than last year’s print of $1.26. Also, on the top line, they’re seeking sales of $4.94 billion. That’s up 21% from 2023’s haul of $4.08 billion. Combined with the experts’ moderate buy rating, Realty ranks among the stocks for Fed hikes.

American Tower (AMT)

A magnifying glass zooms in on the American Tower (AMT) website.
Source: Pavel Kapysh /

Another enterprise structured as a REIT, American Tower (NYSE:AMT) is worth keeping on your radar for its technological relevance. Per its public profile, American Tower is a leading independent owner, operator and developer of multitenant communications real estate. It features a portfolio of over 224,000 communications sites. It also commands a highly interconnected footprint of U.S. data center facilities.

To be clear, it’s not without risks. In the trailing five sessions, AMT stock lost 8% of equity value. On a year-to-date basis, shares stumbled more than 21%. From a technical angle, I’m hoping that AMT will stabilize at around the $160 level. That’s where the bulls should see some strong support. So, maybe wait until that price materializes before diving in.

On the positive front, it should be emphasized that analysts anticipate EPS of $7.15 for the current fiscal year. That’s substantially higher than last year’s result of $3.18. Also, note that American Tower offers a forward yield of 3.64%. While speculative, AMT makes for an attractive case for stocks for Fed hikes.

Kinder Morgan (KMI)

kinder morgan (KMI) sign on grass
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A midstream energy operator, Kinder Morgan (NYSE:KMI) focuses on the storage and transportation aspect of the hydrocarbon industry’s value chain. Irrespective of monetary policy pressures, people have to get around. Because the world continues to run on oil, demand for the midstream players should rise. Also, electric vehicle demand has struggled, which cynically supports the upside narrative of KMI stock.

I won’t lie and say it’s a sure thing because it’s not. In the past five sessions, KMI stock suffered a loss of more than 3%. Since the start of the year, it’s down about 1%. Historically, though, Kinder Morgan has been a consistent player in the charts. It may not make you rich but it tends to keep you out of the breadline.

For the current fiscal year, analysts are looking for EPS of $1.22. That’s a decent improvement over last year’s result of $1.06. On the top line, they’re anticipating sales of $17.55 billion. That’s a robust 15.8% move from last year’s print of $15.16 billion.

Finally, Kinder Morgan offers a forward yield of 6.39%. It’s well worth consideration.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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