3 Stocks Ready to Rise

The Fed is expected to announce at the end of its meeting that it has narrowed its bond-buying program to $120 billion a month. The U.S. central bank will cut its Treasury and mortgage-backed securities purchases by $15 billion per month, starting in November or December, before ending it completely by mid-2022. The last time the Fed slowed the pace of its bond purchases in May 2013, the best-performing sectors in the months that followed were materials and industry. Financial sectors will also benefit from the anticipated repositioning in the treasury market. With that in mind, we'll take a look at 3 bullish stocks below.

1. Nucor

Shares of Nucor (NYSE:NUE), which have more than doubled in value since the beginning of 2021 due to a strong combination of rising steel prices and increased demand for steel products, look set to gain more in the coming months. As the largest steelmaker in the United States, Nucor will benefit from the anticipated construction boom stemming from President Joe Biden's infrastructure spending package. The plan, which is expected to provide $550 billion in new federal investment in the nation's infrastructure, includes proposals to repair and improve the nation's deteriorated roads, highways, bridges and airports.

2. Union Pacific

Union Pacific (NYSE:UNP), the second-largest freight rail company in the United States, has seen its shares gain strength in recent weeks, thanks to rising demand as economic activity rises. UNP shares, which have increased by about 15% since the beginning of the year, closed at $ 240.44 yesterday, not far from the last record of $ 243.91 reached on October 26. At current levels, the Omaha, Nebraska-based railroad giant has a market capitalization of $154.5 billion, operating 8,300 locomotives over 32,300 miles in 23 states. The rail company primarily focuses on transporting freight goods such as coal, grain, timber, crude oil and ethanol. It also offers shipping services for building products, industrial chemicals, fertilizers, plastics and metals. As such, UNP will still benefit from the continued recovery in industrial activity in the months ahead, even if the Fed withdraws some of its stimulus.

3. Bank of America

Bank of America (NYSE:BAC) has been successful this year, reaping the benefits of a recovering economy, strong investment banking activity and reduced risk of credit losses. Shares of the banking giant, which serves about 11% of all American bank deposits, are up 58% year-to-date, outstripping comparable returns of both the Dow Jones Industrial Average and the S&P 500. BAC stock still looks like a solid investment going forward, given the expected rise in rates in the Treasury market resulting from the Fed's expected official contraction announcement.   3 Stocks Ready to Rise Source: Investing.com You may also be interested in: Cracks Observed in Amazon’s E-Commerce Empire