5 Best Stocks For Inflation According to Redditors

4. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 69

Verizon Communications Inc. (NYSE:VZ) is a New York-based provider of internet, TV, and wireless network services.

Verizon Communications Inc. (NYSE:VZ) has received a $400 million contract from the FBI to improve the agency’s bandwidth globally to meet the ever-increasing data needs. Verizon Communications Inc. (NYSE:VZ) offers a healthy yield of over 5% during these inflationary times and is currently trading at its lowest P/E multiple in the last two decades. The blue-chip stock was given a target price of $58 with a Hold rating by Deutsche Bank on July 19.

Although the S&P 500 Index and the tech-heavy NASDAQ Composite Index have experienced a decline of 17% and 25%, respectively, since the start of the year, Verizon Communications Inc. (NYSE:VZ) has been nearly flat as it has lost only 3% of its value during the same period.

Here’s what ClearBridge Investments said about Verizon Communications Inc. (NYSE:VZ) in its Q4 2021 investor letter:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like telecom (Verizon). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”