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Don’t fear rising interest rates, these stocks could soar as rates rise

Wal-Mart

While Wal-Mart (WMT) may not benefit directly from rising interest rates, the underlying reasons for rising interest rates are good for the company. Low unemployment, and rising wages mean that consumers will have more discretionary income to spend, and some of that discretionary income will be spent at Wal-Mart stores. Wal-Mart has been a strong performer over the recent years, as heavy investments in its e-commmerce business have paid off, and the company has emerged as the strongest competitor to Amazon’s (AMZN) online dominance. If the underlying reasons for higher interest rates remain in place, Wal-Mart should enjoy increased consumer demand, which would drive shares higher. WMT is trading at $100.09, with an average price target of $108.33.

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Chart courtesy of www.stockcharts.com

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Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.