Stagflation Watch: 3 Stocks Analysts Are Backing (PODD vs. CEG vs. WMT)

A combination of the conflict in the Middle East, soaring oil prices, and a weaker U.S. job market has led to rising warnings from analysts about the risk of a return to 1970s-style stagflation. This refers to an economic scenario where inflation rises sharply while economic growth slows down.

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This article spotlights three stocks investors can use as their guide to navigate a stagflationary environment: Insulet PODD +0.31% ▲ , Constellation Energy CEG +4.04% ▲ , and Walmart WMT -2.02% ▼ . These stocks were selected for their impressive upside potential and Buy ratings from analysts.

In addition, we chose them because they have the highest upside potential among the top holdings in these three ETFs, which we have also highlighted as offering investors strong protection against stagflation.

Insulet PODD +0.31% ▲

This Massachusetts-based medical device company develops, manufactures, and sells insulin delivery systems, primarily through independent distributors and pharmacy channels. Insulet operates across various regions of the world, including the U.S., Canada, Europe, and the Middle East.

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While Insulet’s shares have fallen about 19% since the start of the year, analysts currently have a Strong Buy consensus rating on the stock. This comes with an average price target of $353.11, which implies about 53% upside.

Constellation Energy CEG +4.04% ▲

This is a Maryland-based electricity generation company that sells electricity, natural gas, and renewable energy to distribution utilities, as well as industrial and governmental customers.

While Constellation Energy’s shares have dropped about 9% year-to-date, analysts consider the stock a Moderate Buy based on their consensus rating. This comes down to an upside of about 24% based on an average price target of $396.43.

Walmart WMT -2.02% ▼

This is an Arkansas-based American retail giant that operates a chain of supercenters, supermarkets, hypermarkets, warehouse clubs, cash-and-carry stores, and discount stores.

Since the start of the year, Walmart’s shares have climbed about 10%. The stock currently boasts a Strong Buy consensus rating from analysts based on an average price target of $138.92, which implies about 13% upside.

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