The Federal Reserve has done a good job in the past few years of bringing inflation down from peak levels, but it remains above the Fed’s long-term target of 2%. To make matters worse, the Fed’s latest economic projections suggest inflation rates may rebound in 2025, thanks in part to tariffs and policy uncertainty.
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Elevated inflation and interest rates can eat into corporate profits and investor returns, but higher inflation isn’t necessarily bad news for every company. Bank of America analysts recommend these seven stocks that have historically had a positive correlation with inflation and could protect your portfolio:
| Stock | Implied upside over June 20 closing price |
| Freeport-McMoRan Inc. (ticker: FCX) | 14.4% |
| Mosaic Co. (MOS) | 26.6% |
| Devon Energy Corp. (DVN) | 31.2% |
| Applied Materials Inc. (AMAT) | 12.1% |
| Halliburton Co. (HAL) | 7.7% |
| Advanced Micro Devices Inc. (AMD) | 1.4% |
| Tapestry Inc. (TPR) | 12.7% |
Freeport-McMoRan Inc. (FCX)
Freeport-McMoRan is the world’s largest publicly traded copper producer, and it’s also a major producer of gold and molybdenum. Copper prices are up more than 66% in the past five years. It makes sense that as the prices of copper, gold and molybdenum rise, so too do Freeport-McMoRan’s profits. Analyst Lawson Winder has a bullish long-term outlook for copper prices, and Freeport is targeting 4 billion pounds of copper sales, 1.6 million ounces of gold sales and 20 million pounds of molybdenum sales in 2025. Bank of America has a “buy” rating and $46 price target for FCX stock, which closed at $40.22 on June 20.
Mosaic Co. (MOS)
Mosaic produces concentrated phosphate and potash crop nutrients for the agricultural industry. Fertilizer prices surged in 2022 after Russia invaded Ukraine but have since stabilized at lower levels. Analyst Steve Byrne says the bull case for Mosaic goes beyond his positive outlook for phosphate prices. Byrne says Mosaic has made significant structural improvements and is making progress toward goals such as increasing production and improving operations. He projects phosphate prices will peak in the summer months but remain elevated through the end of 2025. Bank of America has a “buy” rating and $46 price target for MOS stock, which closed at $36.34 on June 20.
Devon Energy Corp. (DVN)
Devon Energy is one of the largest U.S. independent oil and gas exploration and production companies. In addition to general inflationary pressures, the recent escalation of conflict in the Middle East has sent oil prices higher over the past month. Analyst Kalei Akamine is bullish on Devon following the company’s recent Investor Day event, which included a business optimization plan targeting $1 billion in free cash flow improvements by the end of 2026. In addition, unlike its competitors, Devon did not cut activity when oil prices slumped in early 2025. Bank of America has a “buy” rating and $45 price target for DVN stock, which closed at $34.29 on June 20.
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Applied Materials Inc. (AMAT)
Applied Materials is the world’s leading producer of wafer fabrication equipment for the semiconductor industry. Analyst Vivek Arya says Applied Materials has unique technical capabilities, a diversified product portfolio and a reputation for customer service and support. Arya says the company is positioned to capitalize on secular growth trends in data consumption and chip demand. In the near term, Arya says tight supply conditions in the memory market will support prices, and he projects 5.7% revenue growth for Applied Materials in 2025. Bank of America has a “buy” rating and $190 price target for AMAT stock, which closed at $169.46 on June 20.
Halliburton Co. (HAL)
Halliburton is a leading U.S. oilfield services company. Higher energy prices mean more drilling and higher demand for oil services technology. Analyst Saurabh Pant says Halliburton is a leader in oilfield services technology in the North American market, but its international business is underappreciated. In addition, Pant says Halliburton consistently generates impressive free cash flow. The company is focusing its efforts on technological innovation, collaboration and service quality to create value for investors regardless of the ups and downs of the oil market. Bank of America has a “buy” rating and $24 price target for HAL stock, which closed at $22.28 on June 20.
Advanced Micro Devices Inc. (AMD)
Semiconductor company Advanced Micro Devices produces personal computer central processing units (CPUs) and graphics processing units (GPUs), and it has gained significant market share from leader Intel Corp. (INTC) in recent years in the data center chip market. Arya says the market for artificial intelligence chips is so massive that Advanced Micro Devices can create significant value even as a distant second-place to AI chip industry leader Nvidia Corp. (NVDA). Arya anticipates AMD’s latest MI355X chips will boost the company’s average selling price as customer demand ramps. Bank of America has a “buy” rating and $130 price target for AMD stock, which closed at $128.24 on June 20.
Tapestry Inc. (TPR)
Tapestry is the parent company of luxury brands Coach, Kate Spade New York and Stuart Weitzman. The company produces accessories, handbags, footwear, fragrances and other products. Rising prices will likely not deter Tapestry’s high-end customer base. In fact, Tapestry’s stock has doubled in the past year, driven higher by positive momentum from the Coach brand. Analyst Lorraine Hutchinson says Tapestry is well positioned for consistent sales and profit growth. Hutchinson says Coach is performing particularly well among younger Gen Z and millennial customers in North America. Bank of America has a “buy” rating and $95 price target for TPR stock, which closed at $84.33 on June 20.
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7 Stocks That Are Good Inflation Investments originally appeared on usnews.com
Update 06/23/25: This story was published at an earlier date and has been updated with new information.
