In this article, we discuss the 5 stocks to buy amid rising inflation. If you want to read our detailed analysis of these stocks, go directly to the 13 Stocks to Buy Amid Rising Inflation.
5. Colgate-Palmolive Company (NYSE: CL)
Number of Hedge Fund Holders: 48
Colgate-Palmolive Company (NYSE: CL) is a company that markets health care and personal care products. It is ranked fifth on our list of 13 stocks to buy amid rising inflation. The company has one of the most recognizable brand names in the world, and the pricing power that comes with it, that it can fall back on in the case of inflation. The company’s shares have returned more than 10.7% to investors in the past year. Colgate-Palmolive has a market cap of close to $70 billion and posted $16 billion in revenue last year.
On June 18, investment advisory Evercore maintained an Outperform rating on Colgate-Palmolive Company (NYSE: CL) stock with a price target of $95, implying upside potential of 15%, noting the company’s pricing power in emerging markets like Brazil and China.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Colgate-Palmolive Company (NYSE: CL) with 11.9 million shares worth more than $940 million.
Here is what First Eagle Investment Management has to say about Colgate-Palmolive Company (NYSE: CL) in its Q1 2021 investor letter:
“The leading detractors in the quarter (included) Colgate-Palmolive Company. After a strong 2020 fueled in part by lockdown-driven demand, consumer staples stocks generally cooled during the first quarter as investors shifted attention to the more economically sensitive areas of the market likely to benefit from re-openings and improved discretionary spending. The effects of this rotation could be seen in the share price underperformance of names like Colgate-Palmolive.”
4. Adobe Inc. (NASDAQ: ADBE)
Number of hedge fund holders: 107
Adobe Inc. (NASDAQ: ADBE) is a computer software company with leading offerings for digital animators, artists, editors, and other creative professionals. It is placed fourth on our list of 13 stocks to buy amid rising inflation. The stock has returned more than 31% to investors over the past year. The company recently smashed analyst predictions for earnings per share and revenue for the second fiscal quarter, reporting a 25% year-on-year growth in the revenue for digital media and 24% year-on-year growth for creative revenue.
On June 18, investment advisory Mizuho maintained a Buy rating on Adobe Inc. (NASDAQ: ADBE) stock with a price target of $640. Other advisories like BMO and RBC have Outperform rating on the stock with price targets of $630 and $650 respectively.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Adobe Inc. (NASDAQ: ADBE) with 5.9 million shares worth more than $2.8 billion.
Polen Capital, an investment management firm, published its “Polen Global Growth” first quarter 2021 investor letter and mentioned Adobe Inc. Here is what Polen Capital has to say about Adobe Inc. (NASDAQ: ADBE) in its Q1 2021 investor letter:
“Adobe and Autodesk are both prime examples of the rotation that occurred during the quarter. Both are dominant businesses in their respective markets, which are experiencing structural tailwinds. Despite each business’s position of strength, the stocks of cyclicals and businesses with higher leverage and lower profitability were more favored this past quarter. In stark contrast, Adobe and Autodesk both have low leverage, high levels of profitability, high recurring revenues that mitigate cyclicality, and are both capital-light business models—all attributes we appreciate as investors. Adobe and Autodesk were also two of the top three performers within the Portfolio during 2020.”
3. The Procter & Gamble Company (NYSE: PG)
Number of Hedge Fund Holders: 70
The Procter & Gamble Company (NYSE: PG) is a firm that makes and sells consumer packaged goods. It is ranked third on our list of 13 stocks to buy amid rising inflation. The company’s shares have returned more than 11% to investors in the past twelve months. Some of the famous brands owned by the firm include Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, among others. The firm is a solid bet in times of inflation as it markets essential products and has an international presence.
On April 21, investment advisory Citi downgraded The Procter & Gamble Company (NYSE: PG) stock to Neutral from Buy citing slower growth rates and commodity pressures which will likely result in a tough two upcoming quarters for the firm.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Cedar Rock Capital is a leading shareholder in The Procter & Gamble Company (NYSE: PG) with 8.7 million shares worth more than $1.1 billion.
2. Aspen Aerogels, Inc. (NYSE: ASPN)
Number of Hedge Fund Holders: 13
Aspen Aerogels, Inc. (NYSE: ASPN) is a company that markets aerogel insulation products. It is placed second on our list of 13 stocks to buy amid rising inflation. The products sold by the company are used in energy infrastructure development and building materials. The company’s shares have offered investors returns exceeding 260% over the past twelve months. With a brand name and presence in four different continents, the stock is a good hedge against inflation.
On April 29, Aspen Aerogels, Inc. (NYSE: ASPN) posted quarterly earnings results, reporting earnings per share of -$0.22 for the first three months of 2021, missing market estimates by $0.02. The revenue over the period was over $28 million, beating market predictions by more than $4 million.
At the end of the first quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $88 million in Aspen Aerogels, Inc. (NYSE: ASPN), up from 9 in the preceding quarter worth $58 million.
1. Zoetis Inc. (NYSE: ZTS)
Number of Hedge Fund Holders: 58
Zoetis Inc. (NYSE: ZTS) is a drug company that is the largest medicine maker for pets and livestock. It is ranked first in our list of 13 stocks to buy amid rising inflation. The stock has returned more than 35% to investors over the past year. It markets a variety of products like vaccines and other pharmaceutical offerings for cattle, swine, poultry, fish, sheep, dogs, cats, and horse, among others. The company has a market cap of close to 490 billion and posted $6.6 billion in revenue last year.
Zoetis Inc. (NYSE: ZTS) is a solid option for income investors. On May 20, the company declared a quarterly dividend of $0.25 per share, in line with previous. The forward yield was 0.57%.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in Zoetis Inc. (NYSE: ZTS) with 2.6 million shares worth more than $420 million.
You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.