Stocks Aiming for Rise During Low Interest Rate Period

Opportunities in a Low-Interest Environment

Recently, the decline in inflation has strengthened the hand of the Central Bank of the Republic of Turkey (CBRT) in its interest rate reduction policies. The policy rate, which was at 47.5% at the beginning of the year, was reduced to 38% with a 150 basis point cut. This situation not only creates new recovery grounds for companies with a high debt structure but also offers opportunities to investors.

Companies with Growth Potential

With the decrease in costs, it is important to focus not only on low-cost stocks but also on companies that can respond most quickly to changes in the interest rate environment. It is predicted that a regular reduction process will continue through 2026. Additionally, companies with positive free cash flow and strong operational margins represent the group with the fastest recovery potential due to financial leverage effects.

Financial Indicators and Performance Analysis

One common characteristic of these companies is that, despite their price performance remaining weak, they have not lost strength in their fundamental indicators. Even during periods when the market punishes such companies, their strong cash flows ensure that their solid structures remain intact. In general, as interest rate cuts accelerate, this structure can transform into delayed but strong pricing.

Target Stocks and Growth Criteria

While the base rate has provided a 0% return since the beginning of the year, free cash flow growth has occurred above 0%. It is important to identify the most notable firms among those filtered for the highest growth potential. Conducting careful analyses on which stocks investors should focus on forms an important strategy in this period.

In conclusion, companies operating in a low-interest environment and maintaining balance sheet quality offer potential opportunities for investors. Strengthening fundamental indicators may emerge as a precursor to market movements.