In this article, we will take a look at the 5 Best Inflation-Hedge Stocks to Buy for 2026. For deeper discussion and analysis, read 10 Best Inflation-Hedge Stocks to Buy for 2026.
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. (NYSE:MO) 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 (NYSE:MCD) 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 (NYSE:MCD) 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 (NYSE:XOM) 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. (NASDAQ:AMAT) 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. (NASDAQ:WMT) 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.
While we acknowledge the potential of WMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMT and that has 100x upside potential, check out our report about the cheapest AI stock.
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