David Cordani, President and CEO of Cigna, speaks at the CNBC Healthy Returns conference in New York on May 21, 2019.
Astrid Stawiarz | CNBC
Certain stocks have a history of thriving amid rising inflation – and they have beaten the market this year too.
Investors continue to monitor key inflation data points as it can add costs to businesses and detract from the real value of investment returns. But it’s not always a bad thing for the stock market, especially certain companies that have the power to raise prices. A key inflation indicator, the core consumer spending index, rose 3.1% yoy in April, faster than the forecast increase of 2.9%.
Data from two recent periods of inflation tell us which companies have survived higher prices in the past. Bank of America identified November 2003 through September 2006 and October 2010 through January 2012 as the two most recent intervals with significant inflation. Despite rising inflation, the S&P 500 generated annualized returns of around 9% in each of those time frames, according to BofA.
CNBC Pro found the stocks that beat the market in those two inflationary time frames – then checked which of those names would outperform again in 2021. These names come from both the S&P 500 and the S&P MidCap 400 index. From this list, we then filtered out the stocks that more than 70% of analysts say to buy and that are at least 10% above their average 12-month price target.
So in the end, we got a list of past inflation winners who have outperformed the market this year and analysts believe they can go even higher. Take a look at CNBC Pro’s list of inflation winners: