If I am right, and inflation is peaking because freight costs are coming down and oil is rolling over then we have some strong opportunities to make some money here.
In the food business two stocks stick out: PepsiCo (PEP) and Conagra (CAG) . PepsiCo got hit from a combination of weaker carbonated sodas - Coke (KO) took share - and slower Gatorade sales. I think aggressive sales and marketing this quarter will reverse the slide and send the stock back up, perhaps as much as 10 points.
Conagra had a good quarter and nothing good happened. That could advance on its own weight. Colgate (CL) is so bad that it could attract activists. Estee Lauder (EL) might just keep attracting growth buyers.
Procter (PG) is a huge buyer of plastic and that's about to come down if oil is rolling over.
In health care, which never really got hit, Medtronic (MDT) and Centene (CNC) should continue to go higher. Medtronic reported a spectacular quarter yesterday. Centene priced a secondary and is off to the races.
We saw that Netflix (NFLX) went up on nothing except a lower inflationary environment. Amazon (AMZN) has huge raw costs and high growth. We want to pay more for a stock like that in a lower inflationary environment.
All of these stocks are standard go-to names when inflation is peaking. They all make sense as a place to be.