"A bit of stagnation - and above all more inflation" is the title of the Bank of America economists' new forecast.
In such a scenario, companies with pricing power are in demand, i.e. those that can pass on rising costs to customers. These are companies that are already making good profits today and not in the too distant future. Their profits will not be greatly affected by higher interest rates. The companies must not be too cyclical; after all, they must also be able to withstand an economic slowdown.
The investment bank Goldman Sachs has compiled a list of 102 stocks that can still hold their own in a stagflation.
Analysts see the greatest price potential in commodity companies such as $MTDR (-13,15%)
Matador Resources, $CVE (-12,28%)
Cenovus Energy, $AA (-6,12%)
Alcoa and $DVN (-12,91%)
Devon Energy. The average price target for these stocks is around 40 percent above the current value. They are followed by tech companies such as $AMZN (-3,47%)
Amazon, $GOOGL (-2,74%)
Alphabet, $MSFT (-2,36%)
Microsoft, $META (-4,44%)
Meta and $ISRG (-8,5%)
Intuitive Surgical. The professionals put the potential here at at least 30 percent. This is followed by other commodities and media groups such as $SLB (-10,7%)
Schlumberger, $COP (-9,29%)
Conocophillips, $RIO (-6,32%)
Rio Tinto and $OXY (-7,71%)
Occidental Petroleum with a potential of between 25 and 30 percent.
Also $WMT (-3,92%)
Walmart is also on the list; analysts see a price potential of 27 percent for the retailer. For the conglomerate $DHR (-7,55%)
Danaher experts expect 25 percent and the railroad company $CNR (-0,97%)
Canadian National Railway is also at the top of the list.
Source (excerpt): WELT / Graphic: ChatGPT
