Embarking on a fiscal journey, investors are on the lookout for resilient stocks to buy for rising inflation amidst the economic unease. With the U.S. inflation rate ticking up to 3.67% in August, small businesses grapple with escalating costs, while the looming threats of an earnings recession permeate the financial landscape since the end of 2022. Nonetheless, subtle opportunities emerge, offering discerning investors potential avenues amidst the prevailing inflationary environment.
Moreover, as markets prudently eye the future, the present invites a sharp assessment of stocks in the sectors once hampered by inflation. These sectors are often first to rebound and, when paired with appealing dividends, may both shield and enhance a portfolio against inflationary impacts. For everyday consumers, limiting non-essential spending becomes essential to avoid financial strain due to price hikes.
However, the investors mainly face concerns about depreciating the market value of their assets. Therefore, these three stocks serve as a beacon, potentially guiding toward prosperity in the economic gloom.
Chevron (CVX)
Chevron’s (NYSE:CVX) CEO, Mike Wirth, is optimistic about the company’s near-term performance, envisioning crude prices propelling to $100 per barrel. Despite CVX stock descending 6.76% year-to-date, TipRanks analysts hoist a bullish signal, suggesting a robust buy with a promising 18% upside potential. Following its remarkable 2022 performance, Chevron distributed a record $7.2 billion to shareholders in the second quarter, highlighting its financial strength.
Moreover, the oil giant trades at around $162 while the crude oil exceeds $80 per barrel, presenting a seemingly undervalued stance. The modest price-to-earnings ratio of 10.3, juxtaposed with consistent dividend growth, hints at considerable financial upside, potentially offering investors a viable entry point in the volatile energy market.
Furthermore, Chevron’s 2023 outlook shines. Having demonstrated strength in 2022, it stands poised as a potential stronghold in fluctuating economic passageways. It offers investors a mix of stable and budding financial opportunities, making it a noteworthy consideration for inflation-adaptive investing.
Microsoft (MSFT)
Microsoft (NASDAQ: MSFT), riding the AI-driven wave, boasts a 39% stock surge this year, positioning itself as a leader in the tech arena. Currently, firms are diving headfirst into the AI sphere, yet Microsoft effortlessly maintains its AI leadership. Moreover, despite being deeply intertwined with the advancements in the AI sphere, Microsoft remains a financial stalwart, with analysts anticipating an 11.3% yearly revenue bump.
Moreover, Microsoft elegantly surpassed second quarter earnings estimates, showcasing an enviable operating income of $88.52 billion. This financial vigor aligns seamlessly with its strong foothold in pivotal growth sectors such as AI, cloud, gaming, and cybersecurity while still satisfying traditional fiscal metrics and investor expectations.
Consequently, Microsoft adeptly melds forward-thinking innovation with steadfastly reliable financials, enticing investors by confidently securing its commanding position in both the current and foreseeable tech landscapes, thereby ensuring a resilient market presence through its commitment to perpetual evolution and technological ascension.
Airbnb (ABNB)
Navigating through the vibrant travel and homestay sector, Airbnb (NASDAQ: ABNB) presents a unique platform that competitors can’t replicate, reflecting not only in user experiences but also in its approximately 50% year-to-date stock ascent. TipRanks analysts foresee a promising future, pinpointing an astounding 18.5% upside, suggesting a secure and potentially lucrative investment horizon.
The travel accommodation sector, forecasted to burgeon from $632.80 billion in 2020 to a staggering $1,974.30 billion by 2031, showcases a robust 11.3% compound annual growth rate. Recognizing the rising value of niche destinations, Airbnb astutely amplifies its offerings, exemplified by the addition of Barbie’s Malibu Dream House to its destinations, cleverly aligning with prevalent commercial movie trends. Amid inflation, its distinctive service model provides a reliable economic shield and the ability to maintain stability during financial upheavals, affirming its investor appeal in inflationary times. This makes it one of those stocks to buy for rising inflation.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines