Investing.com UK on Nostr: Barclays highlights stocks most exposed to stagflation risk ========== Barclays ...
Barclays highlights stocks most exposed to stagflation risk
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Barclays analysts caution investors about the potential risks for equities arising from a combination of weakening demand and persistent inflationary pressures. They highlight the looming margin pressures driven by negative operating leverage as a primary concern. Companies that previously priced in tandem with inflation may face dwindling pricing power as demand softens and inflation remains resilient. Sectors and stocks most vulnerable to these dynamics include Staples, Autos, Durables, and Capital Goods. Among the 44 stocks flagged as high-risk are Albermarle, D.R. Horton, Deere, Walmart, Costco, Ralph Lauren, Kroger, and Colgate-Palmolive. Barclays notes that the basket of high-risk stocks outperformed the S&P 500 during the peak inflation period of 2021-2022 but underperformed as disinflation took over in 2023. They believe there could be more downside if inflation sticks around while growth decelerates.
#Barclays #Stagflation #Equities #Inflation #Demand #PricingPower #Stocks
https://uk.investing.com/news/stock-market-news/barclays-highlights-stocks-most-exposed-to-stagflation-risk-3478687
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Barclays analysts caution investors about the potential risks for equities arising from a combination of weakening demand and persistent inflationary pressures. They highlight the looming margin pressures driven by negative operating leverage as a primary concern. Companies that previously priced in tandem with inflation may face dwindling pricing power as demand softens and inflation remains resilient. Sectors and stocks most vulnerable to these dynamics include Staples, Autos, Durables, and Capital Goods. Among the 44 stocks flagged as high-risk are Albermarle, D.R. Horton, Deere, Walmart, Costco, Ralph Lauren, Kroger, and Colgate-Palmolive. Barclays notes that the basket of high-risk stocks outperformed the S&P 500 during the peak inflation period of 2021-2022 but underperformed as disinflation took over in 2023. They believe there could be more downside if inflation sticks around while growth decelerates.
#Barclays #Stagflation #Equities #Inflation #Demand #PricingPower #Stocks
https://uk.investing.com/news/stock-market-news/barclays-highlights-stocks-most-exposed-to-stagflation-risk-3478687