The Best Stocks To Buy Amid Stagflation Fears are getting a lot of attention as the world faces rising uncertainty. Oil prices have gone up sharply because of the U.S.-Iran conflict.
This has made people worry about stagflation, which is when prices go up, and the economy does not grow. Investors are now looking at sectors with strong business models. Wall Street analysts think Brookfield Infrastructure Partners, SLB and RTX are choices.
These companies make money in a way and work in areas that are always needed, even when the economy is slow. Each of these stocks has a Strong Buy rating, which means people think they will do well. They are good for investors who are careful.
Rising oil prices and geopolitical tensions drive investors towards defensive stocks. [Courtesy: Reuters]
Why Are Stagflation Fears Increasing Globally?
Stagflation fears are going up because of problems between countries and higher energy costs.
The U.S.-Iran conflict has made oil prices go up a lot. Higher oil prices make inflation go everywhere. At the time, the economy is not growing because money is tight.
This makes it hard for businesses and people. Analysts think that if inflation stays high for a time, it could hurt how much money people can buy and how much companies can make.
As things get more uncertain, investors are moving away from stocks that are risky stocks. Instead, they want stability and steady returns.
Which Stocks Are Identified As Top Picks By Wall Street?
Wall Street analysts are highlighting three resilient stocks as top picks amid rising stagflation concerns, supported by strong fundamentals and upside potential.
- Brookfield Infrastructure Partners (BIP): Operates diversified assets across utilities, transport, midstream, and data sectors, expects annual distribution growth of 5% to 9%, offers a dividend yield of about 5%, has gained more than 18% over the past year, holds a Strong Buy rating (five Buys, one Hold), and its $45 price target implies 28% upside.
- SLB (formerly Schlumberger): Operates in over 100 countries, has surged more than 34% year-to-date, increased its quarterly dividend by 3.5% to $0.295, offers a forward dividend yield of about 2.3%, holds a Strong Buy rating with 15 unanimous Buys, and its $55.51 price target suggests 8% upside.
- RTX Corp. (RTX): Benefits from rising geopolitical tensions, reported a $268 billion backlog (including $161 billion commercial and $107 billion defence), has gained 42% over the past year, offers a dividend yield of about 1.5%, expects ~6% organic growth in FY26 with EPS of about $6.70, and its $227.45 price target indicates 21.5% upside.
Infrastructure, energy, and defence stocks lead Wall Street’s stagflation strategy. [Courtesy: The Economic Times]
How Do These Companies Perform During Economic Stress?
The companies succeed during times of economic distress because they operate under business frameworks that demonstrate strong durability. Essential infrastructure assets create a steady income for Brookfield Infrastructure.
The company maintains economic stability through its various business operations. SLB experiences direct advantages from higher oil prices because they boost demand for its services.
The worldwide operations of the company help it establish additional income sources. Geopolitical conflicts lead to increased defence budgets, which benefit RTX operations.
The organisation maintains a substantial order backlog, which provides them with extended revenue projection capabilities. The three companies establish themselves as dependable options during times when economic conditions remain unpredictable.
What Makes Defensive Stocks Attractive In The Current Market?
Defensive stocks attract investors who want to protect their investments when market conditions become unpredictable. Investors seek companies that can maintain earnings despite inflationary pressures.
Infrastructure, energy and defence sectors continue to operate as essential industries throughout all economic periods. These sectors generate stable cash streams while providing dividend payments to investors.
The three companies become more attractive to investors because they offer dividend yields of 5% and 2.3% and 1.5%.
The stocks exhibit lower price fluctuations when compared to growth stocks according to market data. This makes them suitable for investors looking to preserve capital.
Defensive sectors attract investors seeking stability and steady income streams. [Courtesy: Market Beat]
Will The Best Stocks To Buy Amid Stagflation Fears Continue To Deliver?
Oil prices and tensions between countries will not go down soon. This means investors will keep looking for stocks. Analysts think these stocks can give returns even when things are hard.
The market can change because of what governments do and what happens in the world. Investors should watch what is happening in the economy closely.
It is also important to spread your investments to manage risk. These stocks may not grow fast. They are stable and pay dividends.
Also Read: Top 7% Dividend Stocks With Strong Upside Picks by Truist
FAQs
Q1. What Is Driving Stagflation Fears In 2026?
A1: Rising oil prices due to the U.S.-Iran conflict and slowing economic growth are key drivers.
Q2. Why Are Brookfield, SLB, And RTX Considered Strong Picks?
A2: They operate in resilient sectors and offer stable cash flows and dividend income.
Q3. What Returns Can Investors Expect From These Stocks?
A3: Analysts estimate upside potential of 28% for BIP, 8% for SLB, and 21.5% for RTX.
Q4. Are Defensive Stocks Safe During Economic Uncertainty?
A4: They are relatively stable but still carry risks like any equity investment.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors should evaluate their financial situation before making decisions. Market conditions can change rapidly due to geopolitical and economic factors. The mentioned stocks are based on analyst opinions and carry risks. Past performance does not guarantee future returns. Consult a licensed financial advisor for personalised investment guidance.
Sources
- https://www.tipranks.com/news/3-best-stocks-to-buy-amid-mounting-stagflation-fears-according-to-wall-street
- https://www.tipranks.com/news/wall-streets-3-safe-bets-as-feds-powell-downplays-stagflation-but-sees-some-tension-between-the-goals
- https://simplywall.st/stocks/us/utilities/nyse-bip/brookfield-infrastructure-partners/news/what-brookfield-infrastructure-partners-bips-2025-earnings-b
