Welcome to Extreme Investor Network, where we provide you with unique insights and valuable information to help you navigate the world of investing. Today, we want to bring your attention to the importance of choosing companies that can withstand inflation pressures.
In the current market environment, where concerns about rising interest rates and sticky inflation are on the rise, investors are seeking out stocks that have the pricing power and cost controls to weather a potential inflation comeback. With the S & P 500, Dow, and Nasdaq all experiencing dips, and commodity prices reaching new highs, investors are turning to companies that show resilience in the face of inflation.
One key indicator that investors are looking at is the consumer price index, which measures the average change in prices people pay for goods and services. Economists are expecting a 0.3% increase in inflation for March, which could impact the Federal Reserve’s interest rate decisions.
To help investors identify potential inflation-resistant stocks, we used the CNBC Pro Stock Screener to find companies with strong gross margins, reliable earnings growth, low debt, and solid balance sheets. These companies have demonstrated their ability to navigate through inflationary periods and are well-positioned to thrive in the current market conditions.
One such company on our radar is ServiceNow, with an impressive projected three-year earnings per share growth of 143.2% and a low debt-to-equity ratio of 19.5%. Analysts are bullish on ServiceNow’s prospects, citing its expanded generative AI services as a key driver of growth.
Another standout stock is Arista Networks, which boasts zero debt and a gross margin of nearly 62%. With a consensus buy rating and strong earnings growth projections, Arista Networks is a favored stock during times of high inflation.
Nvidia, despite a recent pullback, also made our list due to its high gross profit margin of 72.7% and strong earnings growth potential. Other notable companies that meet our criteria include Cadence Design Systems, Intuitive Surgical, and Old Dominion Freight Line.
As investors navigate through uncertain market conditions, choosing stocks with the resilience to withstand inflationary pressures can help protect and grow their portfolios. Stay tuned to Extreme Investor Network for more unique insights and expert analysis on investing in today’s market.
