Two stocks have the pricing power to withstand inflation, traders say
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According to two traders, investors do not need to search for pricing power in this market.
With consumer prices seeing their largest year-over-year spike in nearly four decades last month, the hunt for stocks that can withstand rising inflation is on — and one of the most popular names out there is still a good bet, Piper Sandler’s Craig Johnson told CNBC’s “Trading Nation”On Friday.
“I think AppleStill looks very appealing,” said the senior technical analyst at the firm. He also stated that Apple’s “incredible pricing strength” was something he considered when upgrading his iPhone.
He said that prices have risen more than 80% in the past seven years since Apple introduced its first iPhone.
Over that period, Apple shares have risen more than 4,050%. On Friday, shares were almost 3% higher at $179.45.
Johnson stated that he would buy it on a pullback towards 157. It’s not a very extended market right now but if the September highs are retraced, then I would be a buyer.
Quint Tatro from Joule Financial, Chief Investment Officer said that another leader in his industry has the ability to influence its cost limitations.
“Starbucks“It isn’t a staple traditional, but they have enormous pricing power,” he stated. “They will definitely be in a position to force those input costs onto customers.”
Tatro stated that while some may be concerned by the high levels of debt, Tatro also said that there is $6 billion of cash.
He said, “Starbucks will be our play to certainly take on the headwinds inflation.”
Disclosure: Joule Financial has shares of Starbucks.
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