Stocks such as H.B. Fuller and Wyndham Hotels & Resorts that have a high proportion of floating rate debt on their balance sheets could win big once short-term interest rates come down. Data pointing to a potentially weaker economy — initial jobless claims this week and August payrolls last week — briefly drove down the 10-year Treasury yield to 4.00% on Thursday, the lowest since higher tariffs were announced in April. Now the market is pricing in an 89% probability that the Federal Reserve will lower its benchmark federal funds rate a quarter percentage point at a policy meeting next week, and 11% odds of a half-point reduction, based on interest rate futures used in the CME’s FedWatch Tool. A rate cut from the U.S. central bank might disproportionately benefit companies with a higher proportion of floating rate debt, lowering the cost of their short-term borrowings. Companies with a smaller market value generally tend to have more floating rate debt than larger businesses. Earlier this month, Goldman Sachs published a screen of stocks with the highest proportion of floating rate debt, including the following companies: One stock on the list was adhesive manufacturer H.B. Fuller, carrying total debt of about $2.1 billion. Shares of the St. Paul, Minnesota-based chemical maker have fallen 9% this year, through Wednesday. Analysts are mixed in their opinion of H.B. Fuller, with two analysts covering the stock rating it a strong buy or buy, one as a hold and another at underperform, according to data from LSEG. The average analyst price target implies upside of about 16%. Another stock Goldman Sachs highlighted as possibly benefiting from easier borrowing costs was hospitality company Wyndham Hotels & Resorts, down 16% this year. The lodging company currently has total debt of about $2.5 billion. Wall Street analysts are overwhelmingly bullish on Wyndham, with 14 analysts rating the stock as either a strong buy or buy, with only one giving it a hold. With total debt of about $6.8 billion, food services provider Aramark has the highest proportion of floating rate debt on Goldman Sachs’ list. Shares have gained 2% this year. Most analysts covering Philadelphia-based Aramark are positive on the stock, with 13 rating it as either a strong buy or buy and only two calling it a hold. Other names on Goldman Sachs’ list included Capri Holdings , Sandisk , Informatica and Elanco Animal Health . ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
