Recent data shows that while headline inflation is steady, core inflation is rising, partly due to new tariffs. This creates an investment opportunity in companies with strong pricing power that can protect their profits by passing on higher costs to consumers.
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Published on August 13
These companies have the rare ability to maintain their margins even when costs rise. Whilst others struggle with tariff pressures, these businesses can pass costs directly to customers.
In an environment where many companies face margin compression, businesses with pricing power stand out. This creates a tactical advantage for investors seeking protection from inflationary headwinds.
From essential utilities to trusted consumer brands, these companies hold positions that customers can't easily replace. This gives them the confidence to raise prices when needed.
With core inflation rising to 3.1% whilst headline inflation holds steady, we're seeing a unique market environment where tariffs are driving up costs. This creates opportunities for companies with strong pricing power - businesses that can protect their margins by passing increased costs onto customers rather than absorbing them.
These stocks represent companies across consumer staples, logistics, and specialised manufacturing sectors. They share common traits: strong brand loyalty, essential product offerings, or critical supply chain positions. This defensive positioning may help them maintain profitability when other businesses face margin pressure.
Each company was handpicked by professional analysts for their ability to navigate inflationary pressures. These firms have demonstrated pricing power through strong brands, essential services, or market-leading positions that allow them to maintain margins even when input costs rise.
Aggregated market capitalisation and investor-facing key takeaways for the provided basket.
PSMT: $3.74B
CMPR: $1.61B
POWL: $4.20B
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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.
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+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.
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