Quant Ratings Updated on 93 Stocks VIEW IN BROWSER Merriam-Webster defines a “forgone conclusion” as “an inevitable result: certainty.” Well, it is a forgone conclusion that the Federal Reserve will finally cut key interest rates at its Federal Open Market Committee (FOMC) meeting this week. And there are two main reasons why: inflation continues to moderate, and the jobs market continues to deteriorate. The evidence has been piling up for months. And as a result, the Fed is now fresh out of excuses. It is expected to finally join the party and cut rates – as I (and others, including President Trump) have been saying were necessary for months now. The Latest Evidence for a Cut The latest evidence came last week, when the Bureau of Labor Statistics (BLS) revised its payroll job estimates. It revealed that it overstated 911,000 payroll jobs in the past year, March 2024 to March 2025. This is the largest payroll revision in the past 26 years! 
To put this into perspective, the revision represents 0.6% of all payroll jobs, and it is literally triple the 0.2% average annual revision in the past 10 years. Prior to this week’s revision, payroll data implied that nearly 1.8 million jobs were added in the past year through March. That represents an average of 149,000 jobs per month. But given the BLS’s revision, monthly job growth is essentially half of the original estimate. Now, the final payroll data will be revised and released in early 2026. But before then, it’s clear that the cracks in the labor market are worse than originally estimated. If the ailing jobs market wasn’t enough to pressure the Fed to cut key interest rates next week, then the latest inflation data certainly is. We covered both reports in last Thursday’s Market 360. To sum up briefly, the Producer Price Index (PPI) revealed that wholesale prices declined sharply last month. In the past 12 months, headline PPI has risen 2.6%, also substantially lower than estimates for a 3.3% annual pace. The Consumer Price Index (CPI), though, was a little warmer, up 2.9% on a yearly basis, compared to 2.7% in July. | Recommended Link | | | | After more than 40 years on Wall Street, I feel a sense of duty to share what I’ve recently learned with as many people as I can. A very dark day is coming to America. Millions of people are standing in the shadow of the biggest financial tidal wave this nation has ever seen. And they have no idea it’s coming. My goal here, right now, is to not scare – but prepare you. It doesn’t matter if you have $10,000 in savings… Or $10 million. You can benefit from the information I share here. |  | | What I’m Looking for on Wednesday Now, the Fed has a dual mandate of taming inflation and maximizing employment. With inflation moderating and the jobs market struggling, there’s a 100% chance the Fed will cut rates on Wednesday. Interestingly, the latest jobs and inflation data introduced calls for a bigger rate cut next week. But the slightly warmer-than-anticipated CPI report will likely push the Fed only to cut rates by 0.25%. According to the CME FedWatch tool, there is a 96% chance that the Fed will cut key interest rates by 0.25%. Still, it will be interesting to see how the FOMC meeting plays out and what Fed Chair Jerome Powell says following the policy meeting. The big news, though, will be the updated “dot plot,” as Wall Street is anxious to see how many rate cuts are forthcoming. Before all of the data last week, Wall Street was expecting three rate cuts. But there is now a growing probability that four rate cuts could be in the offing. No matter how many rate cuts are signaled, the first rate cut next week should be a boon for the stock market, as investors celebrate easier monetary policy. And the stocks that will likely benefit the most from the post-FOMC party should be those with superior fundamentals. This Week’s Ratings Changes Already, September is shaping up to be a positive month for the stock market, with most folks excited about the upcoming rate cut. All of the major indices have meandered higher, with the Dow up 0.8%, the S&P 500 up 2% and the NASDAQ up 2.9% in the past two weeks. Wednesday’s rate cut could guarantee stocks will buck the typical market weakness in September and actually end the month higher. So, with this in mind, I took a fresh look at the latest institutional buying pressure and each company’s financial health and decided to revise my Stock Grader (subscription required) recommendations for 93 big blue chips (subscription required). Of these 93 stocks… - Eleven stocks were upgraded from a Buy (B-rating) to a Strong Buy (A-rating).
- Seventeen stocks were upgraded from a Hold (C-rating) to a Buy (B-rating).
- Eleven stocks were upgraded from a Sell (D-rating) to a Hold.
- One stock was upgraded from a Strong Sell (F-rating) to a Sell.
- Nine stocks were downgraded from a Strong Buy to a Buy.
- Twenty stocks were downgraded from a Buy to a Hold.
- Fifteen stocks were downgraded from a Hold to a Sell.
- And nine stocks were downgraded from a Sell to a Strong Sell.
I’ve listed the first 10 stocks rated as Strong Buys below, but you can find a more comprehensive list – including all 93 stocks’ Fundamental and Quantitative Grades – here. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and adjust accordingly.
| BABA | Alibaba Group Holding Limited Sponsored ADR | A | | COR | Cencora, Inc. | A | | FTI | TechnipFMC plc | A | | HWM | Howmet Aerospace Inc. | A | | PSKY | Paramount Skydance Corporation Class B | A | | RYAAY | Ryanair Holdings PLC Sponsored ADR | A | | SBS | Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR | A | | STN | Stantec Inc | A | | TKO | TKO Group Holdings, Inc. Class A | A | | VIK | Viking Holdings Ltd | A | How to Prepare for What’s Next Now, there may be some twists and turns, but I encourage you to view every dip as a great buying opportunity. Because some big stuff is headed our way, folks. The fact is, we’re heading into the seasonally strong time of year, as quarter-end window dressing and the potential for an early Santa Claus rally could help fundamentally superior stocks rally even higher in the upcoming weeks and months. But that’s just the beginning. The Fed’s first rate cut will be the appetizer – not the main course. The real feast comes on September 30, when President Trump’s economic playbook collides with the Fed’s pivot. Trump has promised a boom “like the world has never seen.” And with his legacy on the line, he’s pulling out every stop now. From record tariff revenues, to trillions in onshoring deals, to historic energy and infrastructure programs, the stage is being set for a $7 trillion shockwave. I call it the Trump Shock – a tidal wave of capital that’s about to hit a narrow group of select stocks. And I’ve already identified five “Buy”-rated companies flashing strong buy signals in my system. Not only do they sport superior fundamentals, but they are also backed by strong institutional buying pressure. In other words, these are the stocks best positioned to soar as Trump’s boom collides with the Fed’s pivot. Go here now to watch my urgent briefing. In it, I’ll give you the name and ticker of one stock absolutely free – and show you how to access my full list of five before the Trump Shock sends them soaring. Sincerely, | .png)
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