A period of inflation indicates the generalized and sustained increase in goods and services, which results in people losing purchasing power, which negatively affects companies and those investing in the stock market. However, due to the period of war currently being experienced, COVID, and new trends in the world, we cannot ignore inflation.
We have assembled in this guide a review of the 10 inflation stocks to watch in 2022.
In This Guide
Listed below are some of the popular inflation stocks available in the market. Scroll down to gather an in-depth analysis of each of the 10 stocks.
Due to the sustained periods of inflation and the unstable situation we find ourselves in due to what is happening in the world today, we have decided to prepare a list of some of the popular inflation stocks. In the sections below, we review each of these stocks to get a better idea of their fundamentals and historical prices.
The company was founded in 1965 and has its headquarters in Purchase, New York. Also, it has the largest portfolio of billion-dollar food and beverage brands globally, including 22 different product lines with annual retail sales exceeding $1 billion.
In addition to their main businesses – Frito-Lay, Quaker, Pepsi-Cola, Tropicana, and Gatorade – they also manufacture hundreds of other nourishing, foods and drinks that bring joy to consumers worldwide. The company has 309,000 employees and is part of the Consumer Non-Durables sector and the Beverages Non-Alcoholic industry.
PepsiCo is listed on the NASDAQ under the ticker PEP. As part of our review, we noted that in 2004 the share was worth $25.27 and now has a value of $169.58, which represents a large change in value. Additionally, its market capitalization is $239.3B, and it pays a dividend of 4.3 and a yield of 2.49%. Additionally, we observe a gross margin of 53.53%, a net profit margin of 14.38%, an operating margin of 11.52%, and a return on investment of 16.69%.
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In Boston, Massachusetts, the company was founded in 2011 and operates throughout the Americas, Europe, Africa, and Asia. American Tower Corporation is a real estate investment trust focused on developing, managing, and operating multi-tenant with a portfolio of over 170,000 communications sites.
American Tower is a Fortune 500, S&P 500, and Forbes Global 2000 company that provides the infrastructure for modern digital communications. Also, American Tower began in 1995 with 2,700 towers. Its portfolio now includes over 220,000 owned or managed sites worldwide and operates in two segments; rental and management and network development services.
It is available on the NYSE under the ticker AMT. Some relevant data is that in 2015 it had a market value of $95.73 per share, and it has increased by $256.60 per share. In addition, it has a market cap of $117.24B and pays dividends of 3.78 with a yield of 1.47%. Furthermore, among its key indicators, we found a gross margin of 46.41%, a net profit margin of 21.72%, an operating margin of 35.77%, and a return on investment of 5.01%.
Newmont Corp. was founded in 1921 by William Boyce and has its headquarters in Denver, Colorado. This mining company is engaged in exploring and producing natural resources, including gold, copper, silver, zinc, and lead. In addition to its mining operations in North America, South America, Australia, and Africa, Newmont Mining Corp also develops oil and gas resources.
The company is regarded as a leader in its field and is the only gold producer included in the S&P 500 index as of December 2021. As another achievement, in 2007, the company became the first gold mining firm to be included in the Dow Jones Sustainability World Index. In addition, Newmont Corp. is a leading provider of value creation, backed by robust safety standards, superior execution, and technical expertise.
Newmont Mining Corp. is listed on the NYSE under the ticker symbol NEM. Among some key characteristics, we can point out that the stock had a value of $25.15 per share in 2015 and is currently worth $84.21, in addition to its market cap of $66.81B and grants dividends of 0.67 with a yield of 0.79%. Additionally, we found that it has a gross margin of 19.49%, a net profit margin of 12.97%, an operating margin of 15.72 %, and a return on investment of 4.95%.
Founded in 1987, the company is incorporated in Delaware, with its headquarters in Houston, Texas. Baker Hughes Company is a leader in integrated oilfield products and services, and digital solutions focused on the oil and gas value chain with the mission to provide customers with solutions to acquire, transport, and refine hydrocarbons more efficiently.
In addition to oilfield services, the company offers a variety of chemical, pipeline, and energy technologies, organized into four distinct segments: Oilfield Services, Oilfield Equipment, Turbomachinery & Process Solutions, and Digital Solutions. Additionally, the company has entered into a strategic partnership with Air Products and Chemicals, Inc. to develop hydrogen compression systems.
Under the ticker BKR, Baker Hughes Company trades on the NYSE. According to some relevant data, in 2019, the company’s share price was $22.19 per share, and currently, it is up by $37.20; in addition to that, its market capitalization is $35.48 billion, and it pays a dividend of 0.72, with a yield of 1.93%. Furthermore, we analyzed that the company has a gross margin of 19.73%, an operating margin of 7.70%, and a return on investment of -9.87%, among other key indicators.
For over 130 years, BorgWarner has delivered innovative and sustainable mobility solutions to customers worldwide, leading the automotive industry to a cleaner, healthier, and safer future. Their product line includes automotive parts for electric, hybrid, and combustion vehicles, timing systems, transmission chains, and emissions systems.
There are four segments within the Company: Air Management, e-Propulsion & Drivetrain, Fuel Injection, and Aftermarket, and it is among the 25 largest automotive suppliers in the world. In addition, BorgWarner has acquired many other automotive companies over time, giving BorgWarner an extensive (as in large) history in the automotive field.
BorgWarner is listed on the NYSE under the ticker BWA. Our analysis reveals that in 2012, the stock had a market value of $33.81 per share and currently trades at $39.32 per share. Its market cap is $8.84 billion, and it grants dividends of 0.68 with a yield of 1.85%. Further analysis of the key indicators indicates that it has a gross margin of 19.25%, a net profit margin of 5.84%, an operating margin of 9.33%, and a return on investment of 8.76%.
The firm is headquartered in Corning, New York, originally founded in 1851. The company is a multinational technology company that provides solutions to a worldwide customer base in optical communications, consumer electronics, and life sciences. In addition, it achieves success through sustained investment in research and development, a combination of material, process innovation, and a network of trusted relationships with customers who are global leaders in their fields.
As one of the world’s leading innovators in materials science, Corning has created life-changing inventions for 167 years. They develop category-defining products using Corning’s unparalleled expertise in glass science, ceramics science, optical physics, and our deep manufacturing and engineering capabilities. Also, they transform industries and enhance people’s lives through them.
Under the ticker GLW, the company trades on the NYSE. According to some relevant data, the company’s value was $19.33 per share in 2011 and currently stands at $33.67 per share. Moreover, its market capitalization is $28.64 billion, and it gives a dividend of 0.99 with a yield of 2.92%. Among other key indicators, the research revealed a gross margin of 34.70%, a net profit margin of 6.19%, an operating margin of 14.64%, and a return on investment of 3.88%.
Established in 1975 as KLA-Tencor, the company was renamed in 2019 and has its corporate headquarters located in Milpitas, California. As a semiconductor equipment manufacturer and a nanoelectronics-related company, KLA Corporation designs, manufactures and distributes yield management and process control systems.
Product lines of the company include Chip Manufacturing, Substrate Manufacturing, Reticle Manufacturing, Packaging Manufacturing, Compound Semiconductor / MEMS / HDD Manufacturing, and Instruments; as a global company, it operates locations in China, Europe, India, Israel, Japan, Korea, Singapore, Taiwan, and the United States.
KLA Corporation’s stock is traded on NASDAQ under the ticker KLAC. First, we analyze some relevant data, such as that it had a value of $113.91 per share in 2019 and has now tripled to $336.09. Additionally, its market cap is $50.72B, and it pays dividends of 4.05 with a yield of 1.20. Furthermore, we determined that it has a gross margin of 60.15%, a net profit margin of 24.66%, an operating margin of 38.94%, and a return on investment of 22.78%.
The firm was founded in 1920 and is located in Kingsport, Tennessee. Eastman Chemical Company is a global manufacturer of speciality materials. They operate across four business segments: Additives & Functional Products (AFP), Advanced Materials (AM), Chemical Intermediates (CI), and Fibers. Also, it is a global speciality materials company providing products for use across a range of industries, including transportation, construction, and consumables.
The company is committed to delivering innovative and technology-based solutions while maintaining its commitment to safety and sustainability and now operates more than 50 manufacturing facilities worldwide and employs approximately 14,000 individuals.
On the NYSE, the company is listed under the ticker EMN. Our studies revealed that in 2021 and 2022, its price has varied, but it currently stands at $108.23. Additionally, its market cap is $13.8 billion, and the stock pays a dividend of 2.9 with a yield of 2.68%. Among other key indicators, we also analyzed its gross margin of 24.02%, its net profit margin of 9.45%, its operating margin of 14.01%, and its return on investment of 8.04 %.
EOG Resources Inc. is an American energy company active in the exploration, development, production, and marketing of crude oil and natural gas worldwide. Founded in Houston, Texas, the firm was originally a subsidiary of Enron Corp, becoming a separate company in 1999.
With proven reserves in the United States, the Republic of Trinidad, the People’s Republic of China, and the Sultanate of Oman, select other international areas from time to time. EOG Resources, Inc. is one of the largest explorations and production companies in the United States.
The company is listed on the NYSE under the ticker EOG. Some of the relevant data we examined was that in 2003 the share was worth $9.23 and is worth $123.46, achieving an extremely significant increase in value. In addition, the company’s market capitalization is $72.33B, and the dividend yield is 1.88%. Additionally, we analyzed the key indicators and found that it has a gross margin of 45.59 %, a net profit margin of 15.24 %, an operating margin of 37.71 %, and a return on investment of 10.08 %.
The company was established in 1998 and is headquartered in Beijing. Among its products are digital items such as computers and mobile devices, household goods, sports equipment, and media manufactured by JD.com, Inc. and its subsidiaries. The Company is China’s largest retailer, online or offline, and the world’s third-largest Internet company by revenue.
As a result of investing in cutting-edge technologies, JD.com is shaping the future of retail in China and beyond. They are developing innovative solutions for all aspects of their business utilizing big data, artificial intelligence, robotics, computer vision, virtual and augmented reality, unmanned vehicle systems, and more.
On the NASDAQ, JD.com is listed under the ticker JD.US. According to the data we reviewed, its share price was $25 in 2014 but is now worth $56.51, doubling its value; and its market capitalization is $76.78B, but it does not pay dividends. Further, we analyzed its key performance indicators and found that it has a gross margin of 13.41%, a net profit margin of 1.57%, an operating margin of 0.35%, and a return on investment of 5.96%.
Now that we have reviewed some of the inflation stocks available to purchase, let us look at some of the characteristics and factors affecting your investment decision in this sector.
Last year, US inflation rates blasted through the roof, and the trend will continue in 2022. In January, annual inflation spiked to 7.5%, a record level last seen in 1982. In contrast, there is indeed no commodity directly related to inflation stocks. We can analyze the main exchange-traded funds that own inflation-related stocks and how they have performed during this inflationary period in January 2022.
At the beginning of 2022, SPDR Gold Trust ETF had a price per share of $169.43 and is now $183.81, iShares Core S&P 500 ETF had a price per share of $464.19 and fell a lot during periods of inflation but recovered and today is at $444.95. Finally, Vanguard Real Estate ETF had a price per share of $108.95 at the beginning of 2022 and is now at $109.12.
By referring to inflation stocks, we are referring to many business lines such as Real Estate, Precious Metals, Oil and Gas Production, and Chemicals, among other industries, as you can see by looking over our popular inflation stocks.
In order to reach the break-even point, we must ensure that the operating costs of the companies are lower than the revenues they generate so that they are profitable. We can obtain income from holding their shares in addition to dividends. The price of a barrel of oil, according to OPEC, is approximately $106.07 per barrel. After discounting operating costs, the break-even point for companies associated with the oil industry is $41 per barrel. This means that these companies have made an approximate $65 per barrel.
Dividends represent the amount of profit distributed among the company’s shareholders. Therefore, the dividend is an income received by the shareholder due to owning the company. As a result, this may be a factor in choosing a stock, should investors want regular passive income from their investments.
These are some of the factors investors can look at while investing and analysing the various popular inflation stocks.
Inflation penny stocks were created because small and new companies wished to raise funds for their operations by issuing shares below $5 (US) or £1 (UK). In addition to its high volatility, this product is very much affected by market speculation, which is often manipulated, so you must keep up to date.
Here are two popular inflation penny stocks of companies that users can look to review.
Founded in 1950, Harmony Gold is a gold mining company based in Randfontein, South Africa, operating in South Africa and Papua, New Guinea. It is also involved in exploring, extracting, and processing gold deposits and uranium, silver, and copper exploration.
Harmony Gold trades on the NYSE under the symbol HMY. In addition, the company currently has a price per share of $4.8, a market capitalization of $2.972B, a dividend yield of 0.96%, a gross margin of 13.91%, and a net margin of 1.7%.
IAMGOLD Corporation is a Canadian mid-tier gold mining company whose principal activities include exploring, developing, and operating gold mining properties. It operates globally in North America, South America, and West Africa. The company’s mining projects include Rosebel gold, Essakane Gold, Westwood Gold, Sadiola Gold, and Yatela.
IAMGOLD Corp trades on the NYSE under the symbol IAG. Despite having no dividends, it has a gross margin of 0.23%, a price per share of $3.68, and a market cap of $1.77B.
Users may want to begin their investment process from a broker that can cater to their trading needs.
In the section below, we analyse and review one such broker which allows users to invest in inflation stocks.
eToro is a popular broker with more than 26 million users and gives users access to over 17 international markets. With over 2,500 stock options, users can invest in inflationary stocks, along with ETFs, market bundles, indices and even cryptocurrencies.
eToro is also a CFD brokerage – meaning users can apply leverage and enhance their trades by up to 5x. However, this feature should be used by investors with a high risk tolerance, since the chances of losing more money are as high as earning more revenue.
eToro offers 24/7 customer service, and if you are a novice, you can use the copy trade option and analyze the movements of more experienced traders to make money. You can even use the demo version, which provides $100,000 of free trades, to make purchases of inflation stocks until you are confident enough to move to the live account.
eToro allows you access to 19 international markets, including the NYSE and NASDAQ, which can aid you in finding the most appealing inflation stocks to trade. Now let us examine the positive aspects of this platform, which offers the opportunity to trade inflation stocks with zero commissions.
Now that you know everything you need to know about inflation stocks, you can analyse the information and make a decision on whether or not you wish to invest in the industry.
Should you choose to do so, you may want to pick a suitable brokerage that will cater to your investing needs. In the sections below, we will show you how to begin trading with the chosen broker of your choice.
Head over to the homepage of your chosen broker and begin the account set-up process. You will be required to fill in your personal details – including your full name, email address and mobile number. Create a username and password for the platform to continue.
Most popular brokers are regulated – which is why users may be required to verify their accounts. To do this, simply upload proof of ID (a copy of your driver’s license or passport) and proof of address (a copy of a bank statement or utility bill). Once these documents have been uploaded, your broker should verify them in a couple of minutes.
The next step is to deposit funds into your trading account. Most brokers may support 1 or more of the following payment methods:
Choose your preferred payment option and deposit the funds into your account.
Once your account has been funded, proceed to search for any inflation stocks you wish to purchase by searching on your platform’s search bar. Fill in the amount you want to credit into the trade, and confirm your transaction.
In this guide, we have observed, reviewed and analysed the popular inflation stocks available in the market currently. If you want to invest in this sector, you may want to do so with the help of a popular broker that will cater to your investing needs.
However, you should make sure to conduct your own market research before deciding whether or not to invest in inflation stocks.
As these conditions persist, inflation is on the rise. However, you should make this decision after carefully analysing and reviewing the sector.
Yes, you can invest in inflation stocks with a suitable broker of your choice.
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