Investing

5 Stocks to Buy Now That May See No Negative Impact From Rising Interest Rates

General Motors

This venerable car company could benefit from an improving economy and the return to work, and also it is on the firm’s US 1 list of top stocks. General Motors Co. (NYSE: GM) is the world’s largest automaker, with annual volume of almost 9 million units. It now relies on only four core brands in its key North American segment (Chevrolet, GMC, Buick and Cadillac).

GM also sells cars, trucks and crossovers to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. In addition, it offers connected safety, security and mobility solutions, as well as information technology services. The company, through its General Motors Financial Company subsidiary, provides automotive financing services.

The analysts are positive on the auto giant and noted this recently:

GM announced that Cruise has entered into a strategic agreement with Microsoft to advance commercialization of its autonomous vehicle fleet. Microsoft’s value-add to Cruise/GM partnership and AV development/deployment will be its cloud/edge computing platform Azure. Microsoft will contribute to a $2 billion equity investment in Cruise, bringing post-money valuation to $30 billion

The BofA Securities team has set its price target on the auto manufacturer at $72. The consensus target is lower at $63.81, and General Motors stock was last seen on Friday trading at $59.96 a share.

United Rentals

This stock has rallied smartly but still has solid upside potential, and it is also on the US 1 list. United Rentals Inc. (NYSE: URI) is the largest equipment rental company in the world. It has an integrated network of 897 rental locations in 49 states and 10 Canadian provinces. With approximately 12,700 employees, the company serves construction and industrial customers, utilities, municipalities, homeowners and others.

United Rentals offers for rent approximately 3,300 classes of equipment with a total original cost of $8.7 billion. Trading at 12.2 times trailing 12-month earnings, it remains very cheap.

The BofA Securities price target is $350. The posted consensus target was last seen at $293.13. United Rentals stock ended trading on Friday at $317.86 per share.


Needless to say, a sharp spike in interest rates would be dangerous to the overall stock market, and these stocks likely would also be affected if that were the case. However, with the Federal Reserve content to continue a very loose monetary policy until employment drastically picks up, it is unlikely it will raise rates anytime soon.