A surprise surge in wholesale prices signals renewed inflationary pressures across the U.S. economy. This theme focuses on companies with strong pricing power, which allows them to protect profitability by passing increased costs on to consumers.
Published on August 15
These companies can raise prices when costs go up, protecting their profits while others struggle. It's like having a built-in shield against rising inflation.
When wholesale prices surge unexpectedly, these businesses don't just survive - they often thrive by maintaining or even expanding their profit margins through strategic pricing.
With the Producer Price Index jumping 0.9% versus the expected 0.2%, now could be the perfect moment to position in companies that benefit from inflationary pressures.
With wholesale prices surging 0.9% in July, far above the expected 0.2%, inflationary pressures are building across the U.S. economy. This creates challenges for most businesses but opportunities for companies with strong pricing power - those that can raise prices without losing customers due to brand loyalty or market positioning.
These companies operate in sectors with inelastic demand or hold unique market positions that allow them to pass increased costs directly to consumers. They typically include utilities, consumer staples, healthcare firms, and businesses with strong brand moats that maintain customer loyalty even when prices rise.
Each company in this group was handpicked by professional analysts for their demonstrated ability to maintain or expand profit margins during inflationary periods. They represent a defensive strategy against rising costs and potential market volatility from monetary policy changes.
Market cap breakdown for the basket 'Navigating Inflation: Companies With Pricing Power' used to generate investor takeaways.
PSMT: $3.74B
CMPR: $1.61B
POWL: $4.20B
Get the full story on this Basket. Read our detailed article on its risks and potential.
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Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.
If you invested across these assets:
In 12 months it might be worth:
+0.69%
On average, analysts expect assets in this group to grow 0.69% over the next year.
12 of 15 assets in this group are rated Buy by professional analysts.
