The 5 Best Stocks for Inflation To Watch in 2024

Many of the world’s economic superpowers have been plagued by inflationary pressures in 2022 and 2023. Largely driven by the Russia-Ukraine war and its impact on supply chains, 2022 saw US and UK inflation rates reach their highest levels since the recession of the 1980s, peaking at 9% and 10% respectively.

Such economic climates present uncertainty for investors, compromising stability and potential growth. With this in mind, investments in more established and resilient companies can provide a hedge against the erosion of purchasing power.

With inflationary pressures persisting across the world today, we have assembled a list of the best inflation-proof stocks to buy in 2024.

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A closer look at the top stocks for inflation

While global inflation is beginning to ease, rates still far surpass their normal levels in many countries, meaning that investors need to remain conscious of how their portfolios could be impacted.
With this in mind, we have taken a look at each of our best stocks for inflation in greater detail.

PepsiCo, Inc. (PEP)

PepsiCo is considered to be a go-to inflation-proof stock due to its consistent growth, having seen its value increase by more than 300% since its 2008, and nearly 20% in the past three years, successfully weathering a difficult economic period. At the time of writing its stock price sits at $172.

The firm also possesses abundant cash reserves, measuring at more than $10bn for the quarter ending September 30, 2023, up 52% year-over-year.

And PepsiCo continues to defy the broader economic picture to this day, its Q3 2023 financials showing a 16% rise in EPS and 8% rise in revenue year-over-year.

ExxonMobil (XOM)

Investor interest in energy assets and elevated oil prices remains a key driver for Exxon Mobil stock. Despite a 130% increase in the firm’s share price in 2023 compared to three years prior, further rapid growth is anticipated if WTI crude settles at least $120 per barrel.

In contrast to the trend of avoiding oil stocks due to the rise of renewable energy, ExxonMobil actively invests in cleaner fuel sources like carbon capture and storage, alongside renewable fuels. This strategy ensures a sustained contribution to the economy’s fuel supply over an extended period

Nvidia (NVDA)

Nvidia’s stock price has soared more than 200% since January 2023, largely thanks to the influence of the firm’s graphics processing units in the quickening AI race. Despite trading at less than $5 per share a decade ago, the firm’s stock price now sits at close to $500. The stock is also widely tipped to be valued, with considerable growth still to come in 2024.

Nvidia also boasts a strong net profit margin of more than 42%, an EPS of 7.57, and has broken the $1tr market cap barrier, further pointing towards strong resilience during economic turbulence.

Alphabet (GOOG)

Much like Nvidia, Alphabet is striving to cement its relevance in the modern age by fiercely competing in the AI race. In February 2023, Google retaliated to Open AI’s newfound dominance by announcing the launch of Bard, its very own generative AI chat bot. The move has, so far, driven a stock price increase of more than 1/3.

But Alphabet commands respect in numerous different tech verticals, boasting more than 90% of the search engine market share and close to a quarter of the advertising market. These factors help to cement Alphabet as a mainstay in the tech market, and establish it as a recession-proof stock.

Microsoft (MSFT)

Though a generational force in the tech market, Microsoft has also established itself as a prominent tech stock in recent years, thanks in no small part to its $1bn investment in Chat GPT creator OpenAI. The move is thought to have significantly bolstered Microsoft’s presence in the AI market in recent years, this being reflected in 66% value growth since the beginning of 2023.

Much like Alphabet, Microsoft continues to dominate other segments of the market, its operating system still powering more than 2/3 of personal computers worldwide. As a result, the firm boasts exceptional financials, with $143bn in cash reserves and a market cap approaching $3tr.

Where to Buy Stocks for Inflation in 2024

Our picks for inflation-proof stocks can be purchased at several online brokerages, with eToro emerging as a common choice.

With its user-friendly interface, low minimum deposits, and support for fractional share trading, eToro ensures accessibility for beginners. Other notable options in this category include Robinhood, Webull, and Charles Schwab.

1. eToro -Best overall platform to invest in inflation stocks

eToro is a leading online brokerage that is considered to be one of the best platforms for investing in inflation stocks.

As well as offering all of the stocks that have been discussed in this guide, eToro provides access to Gold stocks and Bitcoin, which are both used to hedge against inflation.

eToro also offers a range of Smart Portfolios that are catered towards inflation stocks. These portfolios make it possible to invest in a diverse range of assets that have been selected by professional investors. The minimum deposit on eToro is $20 and US stocks can be traded commission-free. 

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Note: Only cryptocurrencies eToro customers in the United States will be able to trade on the platform will be Bitcoin, Bitcoin Cash, and Ethereum.

2. Robinhood – Best mobile app for investing in inflation stocks

Robinhood is the best option for investors who are looking to manage their portfolios on their phones. The app is well-known as one of the best for beginners and experienced traders alike. This is because Robinhood provides access to traditional stock trading as well as options trading.

Stocks can be traded with 0% commissions however, spreads may apply. Another appealing feature of this brokerage is that investors can trade with as little as $1. This makes it a suitable platform for dollar cost averaging and other popular fractional investment strategies.

3. Charles Schwab – Best platform for educational resources

If you’re a beginner looking to learn the ropes of investing, Charles Schwab could be a good option to consider. This reputable brokerage was founded in 1971 and provides market-leading educational resources and 1-to-1 investor support.

Customers can access expert advisors for free and work with the professionals to build a robust investment strategy. Assisted trades are charged at $25 per trade but regular trades on US stocks are commission free.

4. Webull – Top trading platform for day trading inflation stocks

Webull is a suitable option for people who are looking to employ advanced day trading strategies to take advantage of small price movements. Webull provides access to its own proprietary charting tools as well as the reputable MT4 trading platform, which offers thousands of indicators.

Webull also offers a free demo trading account which can be used to test new strategies and features before putting any real money at risk. This makes the platform suitable for experienced traders who understand charting tools and technical analysis.

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Our Verdict on the Best Stocks for Inflation in 2024

As geopolitical events such as the Russia-Ukraine and Israel-Palestine conflicts continue to influence the global economy, resilience and reliability is arguably more valuable to investors than ever. With this in mind, the importance of choosing inflation-proof stocks is evident.

While no stocks are 100% resistant to changes and pressures, the firms mentioned in the guide above have demonstrated consistently remarkable performance in the face of economic challenges. Furthermore, these firms possess a level of brand influence that can prove invaluable in times of hardship.

As a result, these stocks offer investors relative security during an era of high inflation. However, as with any investment, it is still strongly advisable to conduct thorough research before committing.

Inflation Stock FAQs