Barclays outlined in a recent investor note that businesses that were able to increase prices at a pace that exceeded the rate of inflation are most at risk if the economy becomes dominated by slowing demand and sticky inflation pressures.
In light of this, Barclays developed a “pricing power” screen of 44 stocks that experienced strong pricing growth through the peak inflation period from 2021 to 2022. The bank thinks that these stocks are most at risk of margin pressure driven by the combination of weakening pricing power and sticky inflation.
See the complete list below:
Barclays Pricing Power Screen of 44 Stocks
- CF Industries Holdings (NYSE:CF)
- Expeditors International of Washington (EXPD)
- Nucor (NUE)
- Albemarle Corporation (ALB)
- Trane Technologies (TT)
- C.H. Robinson Worldwide (CHRW)
- D.R. Horton (DHI)
- Deere & Company (DE)
- CSX Corporation (CSX)
- Ball Corporation (BALL)
- Costco Wholesale Corporation (COST)
- Masco Corporation (MAS)
- Tractor Supply Company (TSCO)
- Eastman Chemical Company (EMN)
- Target Corporation (TGT)
- Union Pacific Corporation (UNP)
- Vulcan Materials Company (VMC)
- AutoZone, Inc. (AZO)
- Hormel Foods Corporation (HRL)
- The Hershey Company (HSY)
- Genuine Parts Company (GPC)
- Cummins Inc. (CMI)
- Caterpillar Inc. (CAT)
- Tyson Foods (TSN)
- Norfolk Southern Corporation (NSC)
- O’Reilly Automotive (ORLY)
- Monster Beverage Corporation (MNST)
- PepsiCo (PEP)
- Lennar Corporation (LEN)
- Procter & Gamble (PG)
- Colgate-Palmolive Company (CL)
- W.W. Grainger (GWW)
- Snap-on Incorporated (SNA)
- Conagra Brands (CAG)
- Martin Marietta Materials (MLM)
- Campbell Soup Company (CPB)
- Ralph Lauren (RL)
- Brown-Forman Corporation (BF.B)
- The Clorox Company (CLX)
- Kimberly-Clark Corporation (KMB)
- Kroger (KR)
- Illinois Tool Works (ITW)
- Walmart (WMT)
- PPG Industries (PPG)
