Inflation Is Not Going Away. 2 Stocks That Will Thrive, 1 That Will Dive

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Inflation typically erodes economic strength, though there are inflation stocks that can still thrive in a high-cost environment. Iamgold (IAG): The gold mine just opened a new low-cost mine that will...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInflation Is Not Going Away. 2 Stocks That Will Thrive, 1 That Will Dive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-26 01:11 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2024/04/inflation-is-not-going-away-2-stocks-that-will-thrive-1-that-will-dive/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Inflation typically erodes economic strength, though there are inflation stocks that can still thrive in a high-cost environment.\nIamgold (IAG): The gold mine just opened a new low-cost mine that will...</p>\n\n<a href=\"https://investorplace.com/2024/04/inflation-is-not-going-away-2-stocks-that-will-thrive-1-that-will-dive/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2237443978.SGD","symbol_name":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","start_time":0,"source_url":"https://investorplace.com/2024/04/inflation-is-not-going-away-2-stocks-that-will-thrive-1-that-will-dive/","article_id":"2430234248","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2430234248","pubTimestamp":1714065104,"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"Inflation stocks can represent a rare opportunity to profit in high cost environments. Learn about the top three.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","CMG":"墨式烧烤","BK4159":"经销商","BK4588":"碎股","SGXZ51526630.SGD":"大华环球创新基金A Acc SGD","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","THAC":"Thrive Acquisition Corp","BK4504":"桥水持仓","LU0708995401.HKD":"FRANKLIN U.S. OPPORTUNITIES \"A\" (HKD) ACC","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","BK4209":"餐馆","LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","IAG":"IAMGOLD Corp","GPC":"Genuine Parts Co","BK4017":"黄金","LU1267930730.SGD":"富兰克林美国机遇基金AS Acc SGD (CPF)","LU0109391861.USD":"富兰克林美国机遇基金A Acc","SGXZ99366536.SGD":"United Global Innovation A Acc SGD-H","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","BK4585":"ETF&股票定投概念","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","SGXZ81514606.USD":"大华环球创新基金A Acc USD"},"translate_title":"通货膨胀不会消失。2只股票将会繁荣，1只股票将会跳水","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"THAC":1,"CMG":1,"GPC":1,"IAG":1},"content_text":"Inflation typically erodes economic strength, though there are inflation stocks that can still thrive in a high-cost environment.\nIamgold (IAG): The gold mine just opened a new low-cost mine that will dramatically reduce its all-in costs.\nGenuine Parts (GPC): The aftermarket auto parts retailer benefits from inflated new and used car values because owners try to keep their existing jalopy on the road longer.\nChipotle Mexican Grill (CMG): The fast-casual chain is at the highest risk of consumers cutting back, as it has risen the most over the past few years.\n\n\n\n\n\n \n\nSource: shutterstock.com/Cinemato\n\n\n\nInflation is here to stay. While down from the historically high levels hit over the past year or so, inflation rates remain elevated and are wearing on the economy. U.S. business activity slowed to a four-month low this month, which has worried the Federal Reserve.\nIt was looking to cut interest rates at least three times this year, possibly as many as six times, but now it’s not sure it will even do it once. Fed Chairman Jay Powell recently said he had no “confidence” that inflation would head in the right direction, and there has even been talk of raising rates again to temper inflation’s growth.\nInflation is insidious to consumers as it erodes their spending power. The same dollars buy less at the store. And it is all because of government spending with no politician exhibiting the will to rein it in. \nAnd yes, some businesses can thrive in a high-inflation environment. Their operations can profit because of the damage it causes to businesses and consumers. Below are two inflation stocks that should do well as high rates persist. There is also one stock that is most at risk.\nIamgold (IAG)\nSource: ShutterstockAs inflation makes a new move higher, the price of an ounce of gold sits near all-time record highs. It is unsurprising to see miners like Iamgold (NYSE:IAG) benefitting. The stock is up 45% year to date, and there is potential for shares to grow even more.\nAlthough costs are rising, profit margins should rise more, especially now that Iamgold had its first pour from Cote Gold. All-in sustaining costs (AISC) grew to $1,762 per ounce sold in 2023 from $1,582 per ounce sold the year before, an 11% increase, but Cote Gold should dramatically lower them.\nCote Gold is a new mine that Iamgold has been developing, and management believes it could be the third-largest gold mine in Canada. The miner says once the project achieves 90% of throughput, which it expects will happen by the end of 2024, it estimates its cash costs at that time will be in the range of approximately $700 to $800 per ounce sold and AISC of $1,100 to $1,200 per ounce sold. That will significantly lower Iamgold’s overall AISC.\nWith stubborn inflation, gold will remain elevated, and miners like Iamgold will profit.\nGenuine Parts (GPC)\nSource: Piotr Swat / Shutterstock.comInflation has made the cost of a new car prohibitively expensive. Used cars are no longer a bargain either. That’s why aftermarket auto parts retailers like Genuine Parts (NYSE:GPC) shine in this environment.\nAccording to Cox Automotive, the cost of a new car in April is $47,244 on average. While that’s down 2% from last year, it is significantly above their pre-pandemic level. Used car prices are also rising again in 2024, hitting $26,969. That’s down 4% from last year, but they are closing in again on the record highs hit in 2022.\nIt is why Genuine Parts is thriving. Car owners want to keep their existing cars on the road longer. The owner of the NAPA Auto Parts retail chain reported $5.8 billion in first-quarter revenue and beat expectations on the bottom line with earnings of $1.78 per share. That had management boosting its full-year profit guidance to $9.80 to $9.95 per share, a 1% increase from its previous outlook at the midpoint.\nThat might not seem like much, but Genuine Parts is a mature company that will not have wild swings. It also pays a dividend that yields 2.4% annually. It has paid a dividend ever since going public in 1948 and has raised the payout for 68 consecutive years.\nChipotle Mexican Grill (CMG)\nSource: Retail Photographer / Shutterstock.comRestaurants are one industry most at risk from inflation because the cost of dining out becomes uneconomical compared to eating at home. Despite rampant inflation, Chipotle Mexican Grill (NYSE:CMG) has been a standout performer over the past few years. Yet persistence in higher prices, which could also lead to a deferral in interest rate cuts by the Federal Reserve, could eventually take a toll.\nChipotle’s armor has been its value proposition for a differentiated menu. The fast-casual chain offers consumers something different (and better) for their money, but when consumers feel pinched more for longer, they will start cutting back. That extra meal picked up through at a Chipotlane drive-thru window can easily be cut out.\nBecause the Mexican food chain’s stock has quadrupled in value over the last five years, it has the furthest to fall. CMG stock is up 66% since its low point last October, but shares could quickly retrace that route.\nOn the date of publication, Rich Duprey held a LONG position in GPC stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.\nRich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSubmit\n\n\n\n\n\n\n\nArticle printed from InvestorPlace Media, https://investorplace.com/2024/04/inflation-is-not-going-away-2-stocks-that-will-thrive-1-that-will-dive/.\n©2024 InvestorPlace Media, LLC","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2430234248"}