5 Best Stagflation Stocks To Buy

In this article, we discuss 5 best stagflation stocks to buy now. If you want to see more stocks in this selection, check out Stagflation Definition: 10 Best Stagflation Stocks To Buy. 

5. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 68

Walmart Inc. (NYSE:WMT) is an American general merchandise retailer and it is one of the best defensive stocks to buy for stagflation. On November 17, Credit Suisse analyst Robert Moskow raised the price target on Walmart Inc. (NYSE:WMT) to $160 from $145 and maintained an Outperform rating on the shares. The analyst said that Walmart Inc. (NYSE:WMT) posted a “strong” Q3, with sales up 8.7%, adjusted operating income of $6.1 billion, and earnings per share of $1.50. Management lifted guidance in accordance with Q3 results but maintained a conservative outlook for Q4, the analyst added, pointing out that he believes there is upside to Q4 given Walmart Inc. (NYSE:WMT)’s trend of setting conservative forecasts since the miss in Q1.

According to Insider Monkey’s third quarter database, 68 hedge funds were long Walmart Inc. (NYSE:WMT), compared to 67 funds in the prior quarter. In Q3, the collective stakes held by hedge funds increased to $4 billion from $3.7 billion in Q2 2022. Ken Fisher’s Fisher Asset Management is the leading position holder in the company, with 8.12 million shares worth $1.05 billion. 

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:

“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart Inc. (NYSE:WMT) and Costco has been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including a number of entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”