Businesses with strong pricing power can pass higher costs from inflation onto customers without losing sales.
These companies are better positioned to protect their profit margins and deliver steady returns, even when prices rise from inflation.
Here are 10 stocks that we think have strong pricing power to beat inflation today:
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Here are some of the interesting picks:
Thermo Fisher Scientific (TMO)
- Market Cap: $160 billion
- Industry: Life Sciences Tools and Services
- Analyst Upside: 49%
- P/E Ratio: 18.1
Company Overview: Thermo Fisher Scientific is a leading provider of laboratory instruments, reagents, and services, catering to sectors like healthcare, life sciences, and environmental analysis. Its key brands include Thermo Scientific, Fisher Scientific, and Invitrogen.
Business Strategy: The company generates revenue by selling scientific instruments, consumables, and services. Thermo Fisher focuses on innovation, strategic acquisitions, and expanding its global presence to drive growth.
Recent Developments
- Earnings & Profitability: The company reported strong earnings driven by steady demand for its tools and services in clinical research and therapy development.
- Business Growth Trends: Thermo continued expansion in the laboratory products segment, contributing nearly half of total sales, and announced plans to acquire Solventum’s purification and filtration business for approximately $4.1 billion.
- Shareholder Returns: Returned capital to shareholders through stock buybacks and dividends, reflecting a commitment to delivering value.
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Chipotle Mexican Grill (CMG)
- Market Cap: $65 billion
- Industry: Quick Service Restaurants
- Analyst Upside: 33%
- P/E Ratio: 37
Company Overview: Chipotle Mexican Grill is a fast-casual restaurant chain specializing in Mexican-inspired cuisine, including burritos, bowls, and tacos. The company operates over 3,400 restaurants, primarily in the US, with a growing international footprint.
Business Strategy: Chipotle generates revenue through food & beverage sales at its restaurants, with a significant portion coming from digital sales. The company focuses on menu innovation, sustainability, and expanding its restaurant footprint to drive growth.
Recent Developments
- Earnings & Profitability: Achieved strong financial results, with revenue and net income increasing, driven by new restaurant openings and a rise in comparable restaurant sales.
- Business Growth Trends: Chipotle expanded its presence in Mexico through a partnership with Alsea, marking its latest international expansion, and plans to open additional locations in North America and Europe.
- Shareholder Returns: The company repurchased shares and maintained a strong cash position, indicating a commitment to returning value to shareholders.
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The Hershey Company (HSY)
- Market Cap: $35 billion
- Industry: Confectionery and Packaged Foods
- Analyst Upside: 99%
- P/E Ratio: 27.3
Company Overview: The Hershey Company is a premier chocolate manufacturer, known for iconic brands such as Hershey’s, Reese’s, and Kit Kat.
Business Strategy: Hershey generates revenue through the sale of its candy products, focusing on innovation, brand strength, and expanding its snacking portfolio.
Recent Developments
- Earnings & Profitability: Hershey achieved higher-than-expected earnings, driven by successful pricing strategies and strong brand performance.
- Business Growth Trends: Expanded product offerings beyond traditional confectionery, tapping into the broader snacking market.
- Shareholder Returns: Consistently rewarded investors through a combination of steady dividend increases and share buybacks while maintaining financial stability.
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TIKR Takeaway
In an inflationary market, Thermo Fisher Scientific (TMO), Chipotle Mexican Grill (CMG), and The Hershey Company (HSY) stand out for their strong pricing power.
Thermo Fisher’s specialized lab equipment and consumables, Chipotle’s customizable meals, and Hershey’s trusted snack brands have enabled them to pass on higher costs without losing demand, helping preserve margins despite rising inflation.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
