Every investor is preparing for the United States Federal Reserve to cut interest rates in September 2025, which will shift the fundamental makeup of the entire S&P 500. While the most popular names today may continue to rise, other logical ways exist to create additional upside in a specific group of companies that will benefit even more from lower interest rates.
These companies have above-average leverage on their balance sheets, considering that the amounts paid on that debt will be much lower when interest rates come down, directly expanding the amount of retained earnings per share (EPS) and valuations.
