While positive economic and earnings data keeps rolling in, investors remain concerned over inflation. In an inflationary environment, investors should consider companies with strong pricing power, which is why David Cohne is recommending Lowe's Companies (NYSE:LOW), O'Reilly Automotive (NASDAQ:ORLY), and Pool (NASDAQ:POOL).As the market continues to hit new highs and many companies report better than expected earnings results, investors need to keep an eye on inflation. Multiple indicators point towards higher inflation ahead, which can erode the value of investment returns over time. But some companies can generate higher profits when prices rise.
That's why we need to pick the right companies in this changing market environment. I suggest companies with higher pricing power. Meaning they have the ability to raise prices faster than their costs. This pricing power can help drive revenue growth and expand profit margins.
To find these companies, all we need to do is take a look at the Nasdaq US Price Setters Index, which includes quality stocks that exhibit growth potential and pricing power. When combined with our proprietary POWR Ratings system, we can unlock Buy-rated stocks such as Lowe's Companies, Inc. (LOW), O'Reilly Automotive, Inc. (ORLY), and Pool Corporation (POOL) that have the pricing power to thrive in an inflationary landscape.