These are the best stocks to watch despite increasing inflationary pressures
- Recent CPI data shows that inflation in the US right now stands at 7%, the highest since the 1980s.
- The Fed has announced that it will be hiking interest rates in a bid to deal with the issue.
- Most of this inflation has been caused by supply chain challenges and disruptions caused by COVID 19.
Inflation has remained one of the key concerns for investors around the world. We have seen market sell-offs not just in equities but also in crypto. We do not expect these inflationary pressures to ease until the end of the year and besides, central banks around the world, including the Fed, are putting in place measures to address this.
While investors don’t like high inflation, there are still some stocks to watch despite this. Here are our top picks:
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Aptiv PLC (APTV)
Aptiv PLC (NYSE:APTV) is a US-based company that specializes in the manufacturing of vehicle components. The company focuses more on the EV market and has continued to beat market expectations as far as earnings go. Aptiv is more likely to benefit from the increased prices in the market and get more revenue on its books.
Analysts are predicting the stock will end the year at around $215. Right now, the Aptiv stock is trading at $143, up around 5% in the last 24 hours. Although this is not an inflation-proof stock, it will weather the storm quite well.
Newmont Corporation (NEM)
Newmont Corporation (NYSE:NEM) is one of the largest mining companies in the US. It is focused more on gold and as you know, there is no better hedge against inflation than gold.
So, in essence, as investors try to weather these inflationary pressures, demand for gold will increase even further. At the time of writing, the Newmont Corporation (NEM) stock was trading at $63.
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