TSCO - 3 Inflation-Proof Growth Stocks to Buy and Hold Forever
The inflation problem is real. According to the American Automobile Association (AAA), the average price for a gallon of gas is $4.96 compared to just $3.07 last year. And this 61% year-over-year increase has real ramifications on everyday wallets. For example, it costs more to drive to work. And it costs more for grocery stores to receive food shipments, causing end-consumer prices to go up. These inflation problems and others are costing average U.S. households more than $400 per month, according to Moody's Analytics senior economist Ryan Sweet.
If consumers spend $400 more a month on things that they need, then they'll necessarily make cuts elsewhere to keep their heads above water. In short, the longer inflation lasts, the greater the odds that it will hurt businesses. For this reason, it's important for investors to consider stocks that can still grow earnings in an inflationary environment. And Sanderson Farms (NASDAQ: SAFM) , Tractor Supply (NASDAQ: TSCO) , and eBay (NASDAQ: EBAY) are three such companies. Here's why.
If you came to this article expecting a discussion of revenue growth, I'm sorry to disappoint you. Sanderson Farms is the third-largest poultry producer in the U.S. and is unlikely to grow its top line very much. In terms of pounds of chicken processed in past years, the top line only grew between 2% and 5% annually from 2018 through 2020. And the company didn't increase the amount of chicken it processed at all in 2021.
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3 Inflation-Proof Growth Stocks to Buy and Hold Forever