3 Stocks to Hedge Against Inflation’s Persistence

Key Points

• U.S. consumer prices rose 0.5% from December 2024, resulting in an effective annual inflation rate of 3% as of January 2025. 
• To mitigate long-term inflation, consider incorporating stocks in sectors that have traditionally performed well under long-term inflation, such as healthcare and consumer staples. 
• Energy service providers ConocoPhillips and First Solar boast high analyst ratings in an inflation-resistant sector, while food storage REIT Americold Realty Trust could be positioned for success thanks to its essential service offerings and dividend growth.

Inflation is officially back—and it’s at its fastest pace since September 2023. According to the latest Consumer Price Index data, consumer prices rose 0.5% from December, resulting in an annual inflation rate of 3% for the 12 months that ended in January. This news came as a relative shock to investors, who had hoped that the worst of inflation was finally over. 

If you’ve got a feeling that inflation is here to stay, you’re not alone. These three stocks are primed to protect your portfolio against the long-term effects of high inflation.

Cool, Consistent Dividends Could Translate to Returns on COLD

There are some sectors investors turn to when inflation rises, with equity REIT stocks being one of the top options. Historically, equity REITs have outperformed inflation 66% of the time and posted an average real return of 4.7%. REITs are also one of the only types of company classifications required to pay out dividends to investors, adding to their value as an inflation hedge.

Americold Realty Trust NYSE: COLD boasts a 12-month price target of $29.17, representing a 35.22% potential upside. It offers a 4.08% dividend yield with a 34.27% annualized three-year dividend growth. When combined with its nationwide equity holdings, COLD is competitively positioned in the REIT market.  

Experts’ estimated return values could be attributed to a series of both inflationary and consumer concerns. Offering a series of climate-controlled industrial storage services, COLD’s essential safety services and status as an equity REIT prime it for returns during periods of high inflation.

This may be especially true in light of recent H5 bird flu concerns, with climate-controlled meat storage essential to reducing pathogen spread. 

High-Tech Energy Gives First Solar an Edge

According to historical data, energy stocks are another inflation superstar, which outperform inflation 74% of the time and delivered an annual real return of 12.9% annually. First Solar, Inc.  NASDAQ: FSLR is one of the most highly rated solar energy stocks, with a 3.04 Buy rating from experts—16% higher than the oil and energy sector as a whole. 

Expert price estimates indicate that First Solar may be significantly undervalued. Shares are currently trading at close to a 52-week low, while the company’s P/E ratio remains competitive at 13.71. Short interest is also healthy, with an acceptable short interest ratio of 2.4, though it has recently decreased by 19.44%, indicating a major recent improvement in shareholder sentiment. 

First Solar currently holds a consensus price target of $276.38, representing a potential upside of more than 72% of its current price of about $160 per share. Improved sales outlook for 2026 and beyond is likely a major contributor to this high ranking, with a projected earnings growth rate of 56%.

While First Solar doesn’t offer the same dividend potential as other picks on our list, it may offset this by offering growth stock potential through its solar R&D department. 

ConocoPhillips Boasts Buy Ratings, Traditional Energy Protections

For investors who prefer a more traditional inflation hedge, upstream energy provider ConocoPhillips NYSE: COP could be a value stock pick with dividend potential. With a 3.16% dividend yield and a 12.92% annualized three-year dividend growth, ConocoPhillips is poised to continue offering consistent, reliable dividend growth with a payout ratio of 40.05%.

As inflation concerns return, now could be the right time for savvy investors to increase holdings in ConocoPhillips. The stock is currently at close to a 52-week low average closing price of about $99 per share with a consensus price target of $133.56.

This represents a 35.5% potential upside, further supported by a general Buy rating from experts. 

Recent financial reports are also solid. In its February 6th earnings report, ConocoPhillips beat consensus EPS estimates by more than 11%.

The company’s earnings are expected to grow by an additional 7.71% next year, as well, putting current inventors in a solid position.