In this article, we will take a look at the 10 Best Inflation-Hedge Stocks to Buy for 2026.
Moderate inflation is usually seen as positive for equities because it often comes alongside economic growth, stronger corporate profits, and rising stock prices. Things tend to become more difficult for investors when economies start overheating, and inflation moves too high. According to a report by Hartford Funds, inflation climbed above 9% in 2022, a level not seen in decades. That spike shook global asset markets and investor confidence before easing to 2.7% by the end of 2025.
Research showed that equities outpaced inflation 90% of the time when inflation remained low, meaning below 3% on average, and continued rising. The picture changed when inflation stayed above 3% and kept increasing. In those periods, equity performance was no better than a coin toss.
Equities overall have struggled during periods of high and rising inflation, but some sectors have historically held up better than others. One example is the energy sector, which includes oil and gas companies. These firms beat inflation 74% of the time and generated an average annual real return of 12.9%. The reason is fairly straightforward. Energy companies are closely tied to energy prices, which are a major part of inflation indexes. When inflation rises, those companies have generally benefited as well.
The situation has often been different for information technology stocks. Much of their expected profit growth is tied to cash flows far into the future. When inflation increases, those future earnings can lose value in today’s terms. Consumer staples companies have generally performed better in comparison because their cash flows are usually concentrated over the shorter term.
Given this, we will take a look at some of the best inflation-hedge stocks to buy now.
Photo by Scott Graham on Unsplash
Our Methodology:
For this list, we reviewed several reliable media sources and selected companies from sectors that tend to perform well during inflation. From there, we picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 27
On May 4, Truist raised its price recommendation on Enterprise Products Partners L.P. (NYSE:EPD) to $40 from $36. It reiterated a Hold rating on the stock. The update came as part of a broader research note covering midstream energy companies after Q1 results. The firm said the quarter benefited from spread optimization, which helped drive stronger financial results and higher guidance. At the same time, the analyst noted that future upside looks less certain because of commodity price volatility, existing hedges, and the expected narrowing of Waha/Katy/HSC spreads. That change is expected as 4.6Bcf/d of Permian takeaway capacity comes online.
On May 4, TD Cowen analyst Jason Gabelman also raised the firm’s price goal on Enterprise Products to $39 from $38 while keeping a Hold rating on the shares. The firm updated its model after Q1 results, noting that the company indicated about 10% of its LPG export capacity would capture spot margins.
Enterprise Products Partners L.P. provides midstream energy services for producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals.
9. Atmos Energy Corporation (NYSE:ATO)
Number of Hedge Fund Holders: 37
On May 8, Citi raised its price recommendation on Atmos Energy Corporation (NYSE:ATO) to $191 from $182. It maintained a Neutral rating on the stock.
During the Q1 2026 earnings call, CEO John Akers said the company generated fiscal year-to-date net income of $985 million, or $5.92 per diluted share. He also said Atmos grew its earnings-per-share guidance range to between $8.40 and $8.50. Akers spent part of the call discussing the company’s infrastructure investment plans, saying capital expenditures totaled $2 billion during the first half of the fiscal year, with more than 89% of that amount going toward improving the safety and reliability of its distribution, transmission, and underground storage systems.
On customer growth, Akers asserted the company added more than 51,000 new customers over the 12 months ended March 31, 2026. Texas accounted for more than 39,000 of those additions. He also pointed to ongoing growth in the Dallas-Fort Worth region. During the second quarter, the company completed Phase 2 of its Line WA project, which included installing roughly 44 miles of 36-inch pipeline west of Fort Worth. Akers said the expansion was aimed at meeting rising demand across the DFW Metroplex.
Atmos Energy Corporation is a natural gas-only distributor serving more than 3.3 million customers across over 1,400 communities in eight states, mainly in the southern U.S. The company also operates pipeline and storage assets, including intrastate natural gas pipeline systems in Texas.
8. Church & Dwight Co., Inc. (NYSE:CHD)
Number of Hedge Fund Holders: 43
On May 4, RBC Capital raised its price recommendation on Church & Dwight Co., Inc. to $114 from $112. It reiterated an Outperform rating on the shares. The firm said the company delivered an impressive quarter, supported by strong volume-driven organic sales growth and healthy underlying performance. According to the analyst, cost pressures have remained a concern across the sector, but Church & Dwight has been increasing productivity efforts to manage additional headwinds. The firm also noted that the company does not plan to raise prices given current consumer conditions.
During the Q1 2026 earnings call, CEO Dierker said net sales increased 0.2%, while organic sales grew 5%. He also stated that adjusted EPS came in at $0.95. Speaking about brand and category performance, Dierker said ARM & HAMMER cat litter consumption rose 6.8%, while market share improved by 0.4 percentage points to 24.6%. He added that THERABREATH posted another quarter of record market share gains, climbing 3.5 points to 24.1%.
Dierker also pointed to the company’s continued digital growth, saying online sales now make up nearly 24% of total global consumer sales. He further noted that Church & Dwight ranked first across the consumer packaged goods sector in total distribution points gained year over year.
Church & Dwight Co., Inc. develops, manufactures, and markets a range of consumer household and personal care products, along with specialty products focused on animal and food production, chemicals, and cleaners.
7. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 48
On May 1, Morgan Stanley lowered its price recommendation on The Clorox Company (NYSE:CLX) to $97 from $110. It reiterated an Equal Weight rating on the shares. The analyst said sales challenges are continuing, especially in the litter and salad dressing categories. The firm also noted that cost pressures are increasing, while pricing actions remain limited, leading to expectations that consensus estimates will need to move lower.
During the fiscal Q3 2026 earnings report, CEO and Chairman Linda Rendle said the company had completed its ERP implementation. She said this positioned the business to better convert its innovation efforts, investments, and distribution gains into stronger brand value and improved performance. Rendle added that the company is now focused on execution, strengthening core operations, improving innovation results, and building momentum heading into fiscal 2027.
She also noted that total distribution points rose more than 5% during the third quarter. According to Rendle, the company is focused not only on gaining distribution, but also on making sure products are placed in the right locations within stores. As an example, she pointed to the Litter category, where products reached major retailers, though shelf placement issues reduced the effectiveness of execution.
The Clorox Company manufactures and markets consumer and professional products worldwide. Its portfolio includes brands such as Brita, Burt’s Bees, Clorox, Fresh Step, Glad, Hidden Valley, Kingsford, Liquid-Plumr, Pine-Sol, and Purell, along with international brands including Chux, Clorinda, and Poett.
6. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 58
On May 8, RBC Capital analyst Steven Shemesh raised the firm’s price recommendation on Target Corporation (NYSE:TGT) to $132 from $130. It reiterated an Outperform rating on the shares ahead of the company’s Q1 results. The analyst said the firm is cautiously optimistic that Target’s turnaround efforts are starting to connect with consumers.
On April 21, Target announced a limited-time collaboration with Parke, a premium brand that has gained popularity among Gen Z consumers for its community-focused approach and elevated basics. Parke builds its collections by listening directly to its audience, designing products around customer feedback, including what shoppers like and what they believe is missing from their wardrobes. The company said this approach helps create collections that feel more personal and reflective of how consumers want to present themselves every day.
Target Corporation is a general merchandise retailer that sells products through its stores and digital platforms. The company offers everyday essentials and differentiated merchandise at discounted prices to its customers, whom it refers to as guests.
5. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 59
On May 1, UBS raised its price recommendation on Altria Group, Inc. (NYSE:MO) to $76 from $74. It reiterated a Buy rating on the shares. The analyst said Altria issued what the firm described as “conservative” guidance for FY26 following strong Q1 results.
During the Q1 2026 earnings call, CEO William Gifford said the company delivered a strong start to the year, highlighting 7.3% growth in adjusted diluted EPS. He also said Altria’s cash-generating businesses continued to support significant shareholder returns through dividends and share repurchases.
Discussing oral nicotine pouches, Gifford said the category kept expanding alongside the rollout of on! PLUS. He stated that shipment volume for the overall on! portfolio rose nearly 18% to more than 46 million cans. According to Gifford, on! and on! PLUS combined held 7.8% of the total oral tobacco category. That was down 0.8 percentage points from the prior year but up 0.2 percentage points sequentially.
He added that on! PLUS began nationwide shipments in March and had reached about 100,000 stores by the end of the quarter, representing 85% of the nicotine pouch category volume.
Altria Group, Inc. operates a portfolio of tobacco products for U.S. tobacco consumers aged 21 and older. Its business segments include smokeable products and oral tobacco products. The smokeable products segment includes combustible cigarettes and machine-made large cigars.
4. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 91
On May 8, Baird lowered its price recommendation on McDonald’s Corporation to $305 from $330. It reiterated a Neutral rating on the shares. The firm updated its model following Q1 results, saying optimism around the company’s internal growth drivers was being balanced against broader external risks.
During the Q1 2026 earnings call, Chairman, President, and CEO Christopher Kempczinski said global system-wide sales rose 6% in constant currency, while global comparable sales increased 3.8%. He also noted that McDonald’s gained market share in nearly all of its top 10 markets during the quarter. Executive Vice President and Global CFO Ian Borden said strong revenue performance helped drive adjusted earnings per share of $2.83. That figure included a $0.13 benefit from foreign currency translation.
Borden added that adjusted operating margin came in at 46%. He also acknowledged that margins at U.S. company-operated restaurants fell short of expectations and described the results as unacceptable. According to Borden, McDonald’s is reassessing the mix between franchised and company-owned locations as it looks to maximize value across the system. On restaurant expansion and rising construction costs, management reaffirmed its long-term growth plans while taking a more measured approach toward returns. Borden said the company still believes it can reach about 50,000 restaurants by the end of 2027. Kempczinski added that management is reevaluating the development pipeline as construction costs continue to rise.
McDonald’s Corporation is a global foodservice retailer with operations across the US, International Operated Markets, and International Developmental Licensed Markets & Corporate segments. The US remains its largest market, with about 95% of locations operated by franchisees.
3. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 98
On May 7, Argus analyst Bill Selesky raised the firm’s price recommendation on Exxon Mobil Corporation (NYSE:XOM) to $169 from $166. It reiterated a Buy rating on the shares. The firm pointed to Exxon’s Q1 earnings beat, while noting that results were still affected by lower production volumes tied to Middle East impacts, operational disruptions in Kazakhstan, and Winter Storm Fern in the U.S. Higher depreciation expenses also weighed on earnings. Argus added that it raised its 2026 EPS estimate by $0.30 to $7.91 following the quarter’s results and expectations for stronger production growth from the company’s Permian and Guyana assets in 2026.
During the Q1 2026 earnings call, Chairman, President, and CEO Darren Woods highlighted several operational milestones. He said Exxon increased production in the Permian year over year and also achieved record production levels in Guyana. Woods added that the Golden Pass project reached its first LNG production milestone. He also noted that refinery throughput in March increased by about 200,000 barrels per day compared with February.
Discussing LNG operations and future growth projects, Woods said Train 1 at the Golden Pass facility started producing LNG in March. He added that once the third train becomes operational, the project is expected to increase current U.S. LNG export capacity by around 15%. Woods also said Exxon continued moving toward final investment decisions for LNG projects in Papua New Guinea and Mozambique, both of which are expected later this year.
Exxon Mobil Corporation is one of the largest energy companies in the world. The company operates across the full energy value chain, including oil and gas production, refining, and petrochemicals, while continuing efforts to improve efficiency and streamline operations across the business.
2. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 111
On May 8, HSBC initiated coverage of Applied Materials, Inc. (NASDAQ:AMAT) with a Buy rating. It also set a $517 price target on the stock. The firm said the company is well-positioned to benefit from growing demand for wafer fabrication equipment. According to the analyst, Applied Materials is expected to see growth accelerate during fiscal 2026 and 2027. HSBC also noted that increasing momentum at Samsung and Terafab could provide additional upside for the company.
Earlier in the week, on May 5, Seaport Research also initiated coverage of Applied Materials with a Buy rating and a $500 price target. The firm said Applied appears to be the best-positioned company among global wafer fabrication equipment suppliers. While the company does not hold ASML’s monopoly position in EUV lithography, Seaport noted that Applied Materials has products across nearly every other major equipment category, including deposition, etch, implant, CMP, and cleaning tools. The firm added that Applied Materials’ role in advanced semiconductors is becoming nearly as essential as ASML’s.
Applied Materials, Inc. is a materials engineering solutions company that provides equipment, software, and services to the semiconductor, display, and related industries. The company operates through its Semiconductor Systems and Applied Global Services (AGS) segments.
1. Walmart Inc. (NASDAQ:WMT)
Number of Hedge Fund Holders: 114
On May 7, TD Cowen analyst Oliver Chen raised the firm’s price recommendation on Walmart Inc. (NASDAQ:WMT) to $150 from $145. It reiterated a Buy rating on the stock. In a research note, the analyst said Walmart looks set for a solid Q1, helped by steady grocery demand and easier comparisons in general merchandise. TD Cowen added that while results could come in ahead of expectations, the company may still stick with its current outlook.
A CNBC report published on May 7 said Walmart has been drawing in more higher-income shoppers as inflation continues to pressure household budgets. Consumers earning more than $100,000 a year have been a major driver of the company’s recent market share gains. The report also noted that Walmart has been making changes aimed at appealing to those shoppers. The company has upgraded stores, improved its private-label products, and expanded its fashion selection in recent quarters.
Walmart has also continued investing in its online marketplace, delivery network, and Walmart+ membership program as it pushes for a more convenient shopping experience. Analysts said the company’s focus on value and convenience has helped it keep those higher-income customers coming back. Broader product selection has also played a role, and most analysts remain positive on the stock’s outlook.
Walmart Inc. operates retail stores, wholesale clubs, eCommerce websites, and mobile apps across multiple countries, including the U.S., Canada, China, India, Mexico, and parts of Africa and Central America. The company reports results through three main segments: Walmart U.S., Walmart International, and Sam’s Club U.S.
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