As a result, the firm boasts exceptional financials, with $143bn in cash reserves and a market cap approaching $3tr. And PepsiCo continues to defy the broader economic picture to this day, its Q financials showing a 16% rise in EPS and 8% rise in revenue year-over-year. Alphabet (GOOG) – Google parent company Alphabet, being primarily a software firm, is another key player in the AI revolution. The company’s stock price has surged 35% since the announcement of its generative AI chatbot, Bard, in February 2023.
Top 7 Investments: Best Hedge Against Inflation in 2025
Plus, the dividend has increased an average of 4.6% per year over the last 10 years. The company has increased dividend payouts by an average of 6.2% per year over the last decade. It has the highest average yearly stock return on the list over the last decade at 15.9% per year.
Infrastructure Investments
But the higher yields that result from inflation also make risk-free investments such as Treasury securities more attractive. As a result, many investors tend to rotate money out of the stock market during inflationary periods. M&T Bank Corporation operates two regional financial institutions, M&T Bank and Wilmington Trust, National Association.
Earnings have risen in what I call a “beautiful line,” increasing every year since 2008, and I expect double-digit growth through this decade. The stock lagged far behind the market in the past year, returning just 6.9%. Sales and earnings are well off their 2021 peak, and the stock has had a choppy past 12 months. Speaking of Value Line, last year I chose Brown & Brown (BRO), an insurer, from the stocks that Value Line rated 1 (tops for price appreciation), and it returned a hefty 51.3%. In addition to trading and investing he’s widely published and coaches individual clients on the finer points of gaining an edge in the market.
- To see how they fit into a broader portfolio, you can explore some of the best stocks for retirement on feargreedtracker.com.
- HCA Holdings (HCA) is one of the biggest private hospital operators in the United States.
- The August consumer price index rose 2.9% on an annual basis last month, in line with expectations.
- Its FCF yield of ~4% supports consistent dividend growth, and its net debt/EBITDA ratio of 2.5x is within a comfortable range.
How can I identify companies with “pricing power” that can pass on rising costs?
2025 is full of opportunities for anyone looking to build a future-focused portfolio. As the stock market adjusts to post-inflation trends, tech innovation has gained momentum, and global priorities have shifted toward green energy and artificial intelligence. Today, we’re covering five stocks built to withstand inflation, offering pricing power, essential products, and resilience against rising costs. Relying on a single asset class, whether it’s gold, real estate, or even inflation-protected bonds, creates concentrated risk. A period of rising interest rates, for instance, might benefit one asset while hurting another.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. Click here to see the full list of 199 stocks from our Fast Growing US Companies With High Insider Ownership screener. With inflation proving more persistent than expected, finding ways to protect capital is becoming increasingly important. Talks of potential tariffs, lingering supply chain pressures, and uncertainty around the Federal Reserve’s next move have investors on edge. My own experience over two decades has shown that a “set it and forget it” approach rarely works during volatile periods. Active monitoring and rebalancing, while avoiding panic, are crucial for long-term success.
- Inflation negatively affects consumers’ purchasing power and makes it more expensive for individuals and businesses to borrow money, so it also leads to lower demand for homes, automobiles, and other large purchases.
- Annual free cash flow over $6 billion supports the dividend plus generous share buybacks.
- This silent wealth destruction makes finding the best hedge against inflation not just a defensive maneuver, but a core component of a resilient long-term strategy.
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Zeta recently completed its acquisition of LiveIntent, which helps retailers monetize their e-mail lists — a wise acquisition. Zeta stock has nearly tripled in five years, but for a booming AI company, the potential for greater growth in value is evident. For example, Indiana police recently credited the company’s software, which investigators used to recover vital information from cell phones and computers, with cracking a drug ring after a string of overdoses. Cellebrite’s revenues rose 25% in the most recent quarter, compared with the same period last year. The company, which went public in 2021, is risky, but the upside is substantial.
Heal says the bank’s deposits have stabilized, and management is focused on improving retail customer service. Argus has a “buy” rating and $63 price target for ZION Best stocks for inflation 2025 stock, which closed at $58.42 on Sept. 12. When your domestic currency weakens due to inflation, foreign assets valued in stronger currencies can appreciate in your home currency’s terms. Furthermore, emerging markets are often rich in commodities, whose prices typically surge during global inflationary periods. This combination of currency advantage and commodity exposure makes international investing a powerful, albeit complex, inflation buffer. Commodity investments involve buying raw materials or primary agricultural products that are essential inputs for the global economy.
Consumers tend to favor larger purchases when the cost of financing them has declined. As an example, blockchain interoperability platform Wormhole uses AMD hardware accelerators. AMD is also in the process of launching its Instinct M1325X chip, which could be a competitor to Nvidia’s Blackwell chip. The company has been working to establish itself as the second-most dominant high-performance chip provider. The Trump administration will be favorable to the oil and gas industry. According to Forbes contributor Robert Rapier, the President-elect has promised several actions to boost oil and gas production.
JB Hunt Transport Services (JBHT)
This reduces currency risk and gives access to emerging markets through US-listed equities with global revenue lines. Snap-on targets slow and steady growth, which is ideal for dividend investors. Strong customer loyalty contributes to high business visibility, and an efficiency focus supports rising margins and profits. Sales rose from $3.73 in 2019 to $4.71 billion in 2024, while diluted EPS grew from $12.41 to $19.51. Wall Street has priced in a 25 basis point cut to interest rates— the first of this year — expected from Federal Reserve officials coming out of their FOMC meeting this week.
Our editors are committed to bringing you independent ratings and information. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the investing methodology for the ratings below. Yes—but only if you focus on companies with capital discipline and free cash flow priorities. Forget boom-bust E&Ps—focus on vertically integrated names or those with renewables arms. Cadence Bank provides consumer and business banking services in the Southern U.S. The branch network includes nearly 400 branches from Texas to Florida.
Bradley Flowers, founder of Portal Insurance, believes Trump’s economic policies could lower costs for insurance companies, according to an interview with Insurance Business magazine. Flowers also predicts Trump’s tax cuts could fuel interest in entrepreneurship, which would in turn raise demand for business insurance. The company also provides employee benefits and asset management services. Customers include individuals and businesses in more than 40 markets around the world. While most of the factors noted above have positive implications, there is always the chance for negative surprises.
Travel-related stocks also tend to be recession-prone, as do financial stocks like banks. Inflation usually leads to rising interest rates (as we’ve seen over the past year or so), which can lead to higher profits for banks. After all, the core business of banks is to take deposits and lend out the money to collect interest.