The Federal Reserve has raised its benchmark interest rate to 0.25-0.50%, the first since Dec 2008. The Fed had cut the rate at a time when the economy had slipped into recession, and a hike now indicates that the economy is largely healed to shoulder the same. 

Of course, the economy is not in bad shape. The employment picture is good enough to clear the way and inflation is crawling toward the desired level. Moreover, a 0.2% increase in November retail sales suggests enough momentum. However, plunging oil prices, a stronger dollar, and their impact need some serious consideration.

Market experts pointed that the Fed will be cautious while raising the rate and anticipate an increase by a meager 25 basis points this year, with one or more hikes in 2016. This will mark an end to an expansionary monetary policy in the U.S., in contrast to China and Europe, where central banks have cut rates to acknowledge economic weakness. In the U.S. economy, however, a rise in rate may create short-term turbulence with a spillover effect in the global stock market.

Concerns over how the market will react to a rate hike or debates on whether the Fed will again keep the benchmark interest rate unchanged are not entirely baseless. But if the Fed decides to go for a raise, will it arrest the bullish run in equities? Nothing concrete can be said on this. Instead of finding an answer to this, it will be better to focus on sectors that are likely to benefit from the move and pick some value-intrinsic stocks.

Here we have highlighted four value stocks from the financial, technology and consumer discretionary sectors that have a favorable combination of a solid Zacks Rank and a sound Value Score. Our research shows that stocks with a Style Score of “A” or “B” when combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy) offer the best upside potential. These are generally undervalued stocks, in spite of having strong fundamentals, and could fetch higher returns on market correction.