2 Inflation-Resistant Stocks Perfect for Today’s Market
Even as inflation shows signs of slowing a bit in the United States, prices for everyday essentials – including food and energy – remain stubbornly high.
For investors, that means the threat of inflation having an impact on purchasing power is still very real and must be considered.
This makes owning stocks that can thrive in an inflationary environment even more important now than ever before.
To do this, you must focus on identifying those companies that can pass rising costs on to consumers without negatively effecting demand. These are businesses with strong pricing power, essential products and healthy profit margins.
Here are 2 stocks that fit those criteria and have historically performed well during periods of elevated inflations. These companies don’t just survive tough economic conditions; they often find ways to grow.
The Procter & Gamble Company (NYSE: PG)
The Procter & Gamble Company (NYSE: PG) has a rich history of innovation and has become a household name in many countries worldwide. Proctor & Gamble Co is a consumer staples stock. A consumer staples stock is a type of stock that offers investors a more stable and steady growth pattern that is minimally affected by economic factors.
Procter & Gamble engages in the provision of branded consumer packaged goods worldwide. The company operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care.
Procter & Gamble’s products are sold through various channels, including retail stores, online retailers, and direct-to-consumer channels. The company has also invested in e-commerce capabilities and digital advertising, recognizing the importance of these channels in reaching consumers.
According to the 23 analysts covering the company’s stock, the average twelve-month price target for PG shares is $180.79. This represents a forecasted upside of 11.69% from the current share price.
Eastman Chemical Company (NYSE: EMN)
Eastman Chemical Company (NYSE: EMN) operates as a specialty materials company in the United States, China, and internationally. The company produces a broad range of products found in items people use every day.
The company has historically demonstrated strong cost pass-through abilities, meaning when raw material costs rise, Eastman can raise prices on its customers without sacrificing volume.
Eastman’s focus on higher-margin specialty products gives them extra resilience against inflation shocks.
An analyst at Mizuho Securities recently upgraded his rating on the company to “Outperform” and wrote that, “EMN has relatively little China competition, relatively little direct exposure to expected tariffs on a combined basis, less than 20% of EMN’s sales are in China, Mexico and Canada, and has what appears to be a clearer path to profitability in circular plastics.”
According to the 14 analysts’ twelve-month price targets for the company’s stock, the average price target is $102.64. This represents a forecasted upside of 35.61% from the current share price.
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