In January, the Consumer Price Index (CPI) rose by nearly 7.5% year over year, setting a record increase that had not been seen in nearly four decades. The Fed is expected to face increased pressure to raise interest rates as a result of the surge. BAC and Johnson & Johnson are two of the best stocks to invest in to profit from this inflationary trend.
Insider Monkey highlights the 10 stocks that are benefiting from rising inflation. As inflation and interest rates rise, insurance company Chubb Limited will reap the benefits. In recent months, hedge funds have piled into the stock. Even though the rate of growth is expected to slow, the value of the company’s stock is expected to remain above historical lows until 2022. Colgate-Palmolive Company is a manufacturer and marketer of consumer goods. For more than five decades, the company has paid out dividends to its shareholders. One of Insider Monkey’s hedge fund trackers, First Eagle Investment Management, has more than $988 million worth of shares. When it comes to Wall Street’s top energy stocks, it’s hard to beat Devon Energy Corporation. GQG Partners has 14 million shares worth over $638 million, making it the largest shareholder. In times of inflation, the energy sector has better pricing power than other industries. Incorporated in California, Chevron Corporation is a major oil and gas company. As the cost of energy rises in tandem with inflation, investor interest in this stock has increased. In the wake of the Ukraine crisis, investors are betting that energy prices will continue to rise. Shares in Eli Lilly and Company have been upgraded from Hold to Buy by DZ Bank, with a $291 price target. 1.6 million shares of GQG Partners are valued at more than $460 million, making it the largest shareholder. The company’s pricing power, historical performance, and stable earnings indicate that it can withstand the inflationary storm. For more details, click 10 Stocks That Are Benefiting From Rising Inflation.