logo

FX.co ★ Top 5 stocks that could benefit from rising US inflation

Top 5 stocks that could benefit from rising US inflation

Rising inflation in the United States unveiled by September report has unsettled Wall Street. Investors prefer cautious trading amid talks that inflation threatens the stock market. However, analysis by UBS shows there are stocks that can benefit from rising consumer prices. Let us take a look at the top-5 assets that are likely to go up under these conditions.

Top 5 stocks that could benefit from rising US inflation

Apple

In October, Apple reported on possible production cuts of iPhone 13 due to the worldwide computer chip shortage. Following that, Apple stocks fell almost 1%. According to UBS analysts, production cuts will hardly affect stock prices. The stocks are likely to gain at least 20% because of high public interest in iPhones. In the next 3 years, demand for Apple products may surpass pre-pandemic levels, in spite of growing prices.

Top 5 stocks that could benefit from rising US inflation

Nike

UBS analysts do not doubt Nike’s ability to become a leader in the highly competitive sporting goods market. The company’s stock price has surged more than 20% since the beginning of 2021. Thanks to Nike’s strong branding and excellent consumer demand for their products, stocks could double in price, reaching $180 from the current level of $157 in the longer term. This level of public interest could even allow Nike to reduce their advertisement expenses.

Top 5 stocks that could benefit from rising US inflation

Coca-Cola

The year of 2021 was not the best one for Coca-Cola’s profitability, since stock prices have slightly changed compared to last year’s closing prices. According to UBS, the next 12 months could see them gain more than 9% thanks to business stability and sound pricing policy of the company. This explains why Warren Buffett has been holding on to his Coca-Cola stocks for more than 30 years already. They account for 7.4% of his portfolio.

Top 5 stocks that could benefit from rising US inflation

Salesforce

Salesforce, a developer of the eponymous CRM system, has a great chance to become a real rival to Microsoft. The company’s stocks have jumped 30% since the beginning of 2021 alone, and are now valued at $290. UBS estimates company shares could gain 13% to $330 over the next year. The market cap of Salesforce is also expected to rise, approaching the $1 trillion mark. The pandemic has brought mounting demand for cloud computing. Thus, the active adoption of the company’s products and solutions means prospects are bright.

Top 5 stocks that could benefit from rising US inflation

EOG Resources

EOG Resources is another company whose stocks have great growth potential. In fact, UBS considers it the most promising one. Stocks of this oil and gas company could rise 37% in the next month, according to UBS analysts, following the 80% surge since the beginning of 2021. Currently, 1 stock is valued at $90, whereas its target price is $119. Consistently high revenue would only boost rising stock. Its revenue may increase by 36% over the next three years.

Go to the articles list Open trading account