Some companies, however, can actually hold up in a no rate change environment.
Here are 9 stocks with up to 81% upside even if rates remain unchanged.
On Wednesday, April 29, the Federal Reserve kept at 3.50% to 3.75%. This was the third meeting in a row with no change. It was also Jerome Powell’s last press conference as chair. His message was clear. are not coming anytime soon. Bond markets now expect rates to stay at this level until at least mid-2027.
This is a big shift. At the start of the year, investors expected one or two rate cuts in 2026. Even in early March, many economists thought a cut would happen by June. That view has changed. The war in the Middle East and higher pushed inflation higher. The , which the Fed tracks closely, may reach 3.7% in the second quarter. That is still well above the 2% target.
In this environment, some US stocks look riskier. These are companies priced on future earnings and supported by low interest rates. On the other hand, companies that already make strong cash today are in a better position. They can reduce debt, buy back shares, pay dividends, and invest in growth, no matter where interest rates go. This is precisely the profile we sought to identify using the Investing.com screener.
These US stocks generate enough cash to perform even without rate cuts
We turned to the Investing.com screener to identify U.S. stocks that meet the following criteria:
Market: United States
Market capitalization greater than $5 billion
Free cash flow yield greater than 8%
Undervaluation according to InvestingPro Fair Value (which synthesizes several recognized valuation models) of over 20%
Upside potential of more than 20% according to analysts
InvestingPro Financial Health Score greater than 2.5
Cash Flow Health Score above 3/5
This research has allowed us to identify 9 opportunities:
Some US stocks that generate strong cash flow still look cheap. Based on fair value estimates, they are undervalued by 21% to 61%. Analysts also see upside of about 22% to 81%.
Here are two examples:
1. Check Point Software Technologies
is a global leader in cybersecurity. It offers tools for network security, cloud protection, endpoint safety, and AI-based threat detection. As cyberattacks increase, demand for these services keeps growing.
What stands out is its strong cash generation. Its price-to-free-cash-flow ratio is around 12.7x, which is relatively low for this sector. The company will report its quarterly results on April 30.
2. MercadoLibre Inc
is the largest e-commerce and fintech company in Latin America. It serves a market of about 650 million people, with fast-growing digital adoption.
Its lending business has expanded quickly, with its credit portfolio reaching $12.5 billion. At the same time, users of Mercado Pago have grown steadily for many quarters, showing strong customer engagement.
For Q1 2026 results, expected on May 7, analysts forecast earnings per share of $8.75. The average price target is $2,768, which suggests around 60% upside.
However, all other stocks on the list show even higher upside potential according to Fair Value!
However, all other stocks on the list show higher upside potential according to Fair Value!
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such, it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remain with the investor.
