Stocks to Consider Before the Fed's September Decision: JPM, EOG, BE

The Federal Reserve’s Sept. 15-16 policy meeting has become unusually consequential for investors as inflation remains above the central bank’s 2% target, the labor market shows signs of renewed strength and geopolitical tensions push crude oil sharply higher.

The Bureau of Labor Statistics reported that nonfarm payroll employment increased by 162,000 in August, well above the 31,000 average monthly gain over the prior 12 months, while the unemployment rate held at 4.1%. The stronger-than-expected employment report has increased expectations for a potential rate hike, with futures markets assigning roughly a 59% probability to a 25-basis-point increase, according to Reuters.

Inflation remains another key constraint. July CPI increased 3.4% year over year, while core CPI rose 2.5%, according to the BLS. The August PPI and CPI reports are scheduled for Sept. 10 and Sept. 11, respectively, immediately before the Fed meeting.

Against this backdrop, JPMorgan Chase JPM, EOG Resources EOG and Bloom Energy BE offer exposure to three distinct forces shaping the market ahead of the Fed meeting — interest rates, elevated crude prices and structural electricity demand from AI infrastructure. Let’s delve deeper.

Oil Shock Adds Another Layer of Inflation Risk

The Fed's policy calculus has become more difficult as the energy market has deteriorated. Brent crude briefly moved above $100 per barrel on Sept. 9 for the first time since July 24 (Reuters), after escalating U.S.-Iran tensions and attacks by Iran-backed Houthis on Saudi energy facilities heightened concerns about supply disruptions.

The oil shock could complicate the inflation outlook by lifting energy costs while simultaneously weighing on household purchasing power and economic growth. The New York Fed's August Survey of Consumer Expectations showed one-year inflation expectations holding at 3.6%, while the perceived probability of higher unemployment over the next year rose to 44.4%, its highest level since April 2020.

Treasury yields are also responding to the changing inflation and policy outlook, with the 10-year yield approaching 4.8%-5%. Higher yields raise corporate borrowing costs and increase the discount rate applied to future earnings, potentially pressuring equity valuations.

3 Stocks to Consider Before the Fed's September Decision

JPMorgan Chase - Strong Banking Fundamentals: JPMorgan offers exposure to an elevated-rate environment through its lending and deposit franchise. The bank reported second-quarter revenues of $57.3 billion and net income of $21.2 billion. Average loans increased 10% year over year while average deposits rose 7%. JPMorgan's standard CET1 ratio was 14.1%, providing the bank with a strong capital cushion to absorb potential losses and support its lending activities.

For JPM, a higher-rate environment can support interest income, while continued labor-market resilience supports loan demand and limits an abrupt deterioration in credit conditions.

This Zacks Rank #2 (Buy) company is projected to report 2026 earnings growth of 22.6% on revenue growth of 13.8%.

Image Source: Zacks Investment Research

EOG Resources - Direct Oil-Price Exposure: EOG provides direct exposure to crude oil, the commodity at the center of the latest energy-driven inflation shock. The company generated $2.8 billion in free cash flow in the second quarter of 2026 and returned $1.8 billion to shareholders through its regular dividend and share repurchases. EOG expects 5% oil-production growth and 14% total production growth in 2026.

With Brent above $100, sustained crude prices could strengthen EOG's cash-generation capacity. Its low-cost operating model and diversified oil, natural gas liquids and natural-gas portfolio also provide some insulation against commodity-cycle volatility. The key risk is that prolonged geopolitical disruption could eventually weaken global demand.

This Zacks Rank #3 (Hold) company is projected to report 2026 earnings growth of 66.2% on revenue growth of 33.1%.

Image Source: Zacks Investment Research

Bloom Energy - AI Power Demand Provides a Separate Catalyst: Bloom Energy offers a structural growth driver that is less dependent on the Fed's immediate decision. Second-quarter 2026 revenues jumped 165.5% year over year, while non-GAAP operating income increased to $239.6 million from $28.6 million a year earlier. Bloom Energy raised its 2026 revenue guidance to $3.9-$4.2 billion, representing 100% growth at the midpoint.

The company is benefiting from the growing requirement for rapidly deployable power for AI infrastructure. That fundamental demand provides BE with a company-specific catalyst even if higher Treasury yields continue to put pressure on growth-oriented equities.

This Zacks Rank #1 (Strong Buy) company is projected to report 2026 earnings growth of 238.2% on revenue growth of 104.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Image Source: Zacks Investment Research

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research