Quality Stocks Built for Higher Interest Rates

Higher interest rates are putting pressure on financial markets, and some investors see an opportunity in large-cap quality stocks that can withstand borrowing costs.

With Federal Reserve Chair Kevin Warsh flagging the risk of more rate hikes as inflation holds steady at 3.7%, the gap between fragile balance sheets and solid cash generators becomes increasingly important.

Three large-cap quality stocks stand out: ServiceNow (NOW), MSC Industrial Direct (MSM), and Curtiss-Wright (CW).

ServiceNow, a US$143.1 billion workflow software company, helps large organizations run critical digital processes with its capital-light model built around long-term contracts.