These stocks should benefit the most as the Fed keeps lowering rates, analysts say

Wall Street analysts named a slew of stocks with upside after the Federal Reserve dialed back interest rates by a half point and forecast more rate cuts ahead. These companies are expected to benefit from lower interest rates over the long haul, according to analysts. The central bank's move brings the federal funds rate to a range of 4.75% to 5.00%. CNBC Pro combed through Wall Street research to find buy-rated stocks best positioned in a falling rate environment. They include Western Alliance , Best Buy, Coca-Cola, Zillow , UPS and FedEx. Zillow Wedbush analyst Jay McCanless recently lifted his rating on the online real estate marketplace company to outperform from neutral. The upgrade, according to the firm, is based in part on lower mortgage rates. Indeed, Fed rate cuts tend to push down Treasury yields, including that of the 10-year note which influences mortgage rates. "In addition to the potentially positive catalyst of lower mortgage rates for Zillow's core brokerage business, we see Zillow's software and services (S & S) initiatives adding to potential upside risk to our estimates," McCanless wrote. The analyst said Zillow's software and services tools could help real estate brokers reduce payroll expenses. "Software and Services Should Add to Zillow's Brokerage Dominance," he added. Shares of the company are up about 16% this year. Coca-Cola The beverage behemoth is also well positioned for upside. "The mega cap Staples space has risen in recent months as lower rates, defensive rotation, and fundamental visibility have driven inflows into the names," Wells Fargo analyst Chris Carey wrote earlier this week. Even though Coca-Cola is up nearly 22% this year, the firm said the stock is still compelling. The company's global sales are robust with margin visibility that remains "strong," Carey said. "We find this trifecta — sales, margins and valuation — as differentiated, " he added. To support his thesis, Carey noted that many Coke bottlers raised their guidance, "citing strong growth across markets amidst some consumer uncertainty." The analyst also raised his price to $78 per share from $73, adding the stock still has plenty more room to run. That price target is tied for a Street high with Morgan Stanley. "KO emerging as perhaps the cleanest mega cap," Carey said. Best Buy Loop Capital analyst Anthony Chukumba is pounding the table for shares of the big-box tech retailer. The analyst said he sees Best Buy as a key beneficiary of lower interest rates in several ways. As rates subside, appliance demand should increase as housing turnover ramps up, according to the firm. In addition, Chukumba said rising consumer confidence means shoppers are more likely to pursue "big ticket" items. He noted that Best Buy continues to be a worthy competitor to e-commerce juggernaut Amazon, pointing to a recent pricing study the firm conducted. "While Best Buy's price gap with Amazon widened slightly from our last pricing study, we note Best Buy remains at virtual price parity in televisions, home theater, and accessories," the analyst said. Meanwhile, Best Buy shares remain undervalued compared to those of its peers in the sector, Chukumba added. The stock is up 24% this year. Coca-Cola — Wells Fargo, overweight rating "The mega cap Staples space has risen in recent months as lower rates, defensive rotation, and fundamental visibility have driven inflows into the names. KO emerging as perhaps the cleanest mega cap. MARGINS. Visibility seems strong. ... We find this trifecta — sales, margins and valuation — as differentiated." Zillow — Wedbush, outperform rating "In addition to potentially positive catalyst of lower mortgage rates for Zillow's core brokerage business, we see ZG's software and services (S & S) initiatives adding to potential upside risk to our estimates. ... However, if our outlook on Residential revenues proves correct, that may be an upside risk to our Mortgage revenue assumptions. ... Software and Services Should Add to ZG's Brokerage Dominance." Best Buy — Loop Capital, buy rating "In addition, Best Buy's prices are less than 1% or better of Amazon's on nearly nine out of every ten items in our market basket, which increased from our last pricing study. Finally, we are incrementally more bullish on near-term demand given the beginning of the US Federal Reserve's rate cut campaign next week, which we believe will benefit Best Buy in two primary ways...." UPS and FedEx — Goldman Sachs, buy ratings "We highlight Buy rated UPS and FDX as two favored names into the cut cycle in addition to idiosyncratic and valuation attractiveness. ... Importantly, we note that when we compare the returns to the overall market as measured by the S & P 500, the market underperforms transports, with flat returns until mid single digit returns six months after the cut all the while transports have double digit returns." Western Alliance — D.A. Davidson, buy rating "The clear initial focus for bank investors when considering a change in the interest rate environment is differentiating between asset sensitive and liability sensitive balance sheets. ... Rate cuts should lead to a steepening yield curve, which will be very beneficial to net interest margin. ... WAL's inclusion on this list falls under the heading of expense (ECR costs), growth, and mortgage-related opportunities."