As we start the current week of trading, inflation stocks appear to be on investors’ minds. For the uninitiated, this part of the stock market consists of stocks that perform well or show resilience during inflation. If anything, the economy has and continues to perform exceptionally as it recovers towards pre-pandemic levels. So much so that core inflation markers are starting to lean towards record highs. Just last week, the Consumer Price Index (CPI) surged by 5% year-over-year, its fastest pace since August 2008. For one thing, the rise in the cost of goods and services would stand to affect consumers and businesses alike.
In cases like this, some would argue that investors would be wise to add some inflation stocks to their portfolios. Namely, billionaire hedge fund manager Paul Tudor Jones said just that in an interview with CNBC earlier today. According to Jones, investors should “go all-in on inflation trades” should the Federal Reserve (Fed) remain unconcerned with rising consumer prices. While watching the Fed ahead of its policy meeting this week, he highlighted commodities, cryptocurrency, and gold. As such, it would not surprise me to see more conservative investors looking for the top inflation stocks now.
For instance, commodity-based companies such as Freeport-McMoRan (NYSE: FCX) continue to prosper amidst rising material costs. Aside from commodities, the current market would also favor cryptocurrency players like MicroStrategy (NASDAQ: MSTR) as the dollar potentially weakens. As it stands, both companies’ shares are currently looking at gains of over 275% in the past year. If you are looking to add some defensive inflation plays to your watchlist now, here are four making waves in the stock market today.Top Inflation Stocks To Buy [Or Avoid] Now
- Marathon Digital Holdings Inc. (NASDAQ: MARA)
- NVIDIA Corporation (NASDAQ: NVDA)
- Newmont Corporation (NYSE: NEM)
- Riot Blockchain Inc. (NASDAQ: RIOT)
Marathon is a digital asset technology company that mines cryptocurrencies. Specifically, it focuses on the blockchain ecosystem and the generation of digital assets. The company currently operates its proprietary data center in Hardin MT with a maximum power capacity of 105 Megawatts. MARA stock currently trades at $31.20 as of 12:22 p.m. ET and has been up by over 17% on today’s opening bell. Investors could be responding to Elon Musk’s comments saying that Tesla (NASDAQ: TSLA) will use bitcoin when mining is done with more clean energy.
Earlier in the month, the company provided a Bitcoin production and mining operation update for May 2021. Impressively, the company produced 226.6 newly minted bitcoins in May, increasing total holdings to approximately 5,518 with a fair market value of approximately $203.4 million. It also ended the month with approximately $191.8 million in cash and total liquidity was approximately $395.1 million.
It has also received approximately 16,809 S-19 Pro ASIC miners from Bitmain year-to-date with an additional 1,911 units currently in transit. The company has also increased its active mining fleet to approximately 17,655 miners, generating approximately 1.9 EH/s. For these reasons, will you consider adding MARA stock to your portfolio?Source: TD Ameritrade TOS
[Read More] 4 Semiconductor Stocks To Watch Right NowNvidia Corporation
Nvidia is a semiconductor company that has essentially pioneered the graphics processing unit (GPU) market. Its products and platforms are used for the large, growing markets of gaming, professional visualization, data center, and automotive industries. NVDA stock currently trades at $719.04 as of 12:22 p.m. ET. On May 31, 2021, the company announced its latest gaming flagship, the GeForce RTX 3080 Ti and RTX 3070 Ti GPU.
It is 1.5x faster than the previous generation and is priced at very competitive rates. Powered by the Nvidia Ampere architecture, the RTX 3080 Ti delivers an incredible leap in performance and fidelity with acclaimed features like ray tracing and Nvidia’s DLSS performance-boosting AI. Also, in late May, the company announced record first-quarter financials. Firstly, the company posted record revenue of $5.66 billion, up by 84% year-over-year.
A huge chunk of this revenue came from its gaming and data center segments at $2.76 billion and $2.05 billion respectively. Gaming revenue more than doubled year-over-year while data center revenue increased by 79% in that same period. With so many exciting things happening to the company, is NVDA stock a top inflation stock to consider buying?Source: TD Ameritrade TOS Newmont Corporation
Newmont is one of the largest gold mining companies in the world. It has ownership of gold mines in Nevada, Ontario, Argentina, and Ghana among others. Aside from gold, it is also a producer of copper, silver, zinc, and lead. Impressively, it is also the only gold producer listed in the S&P 500 Index and is an industry leader in value creation. NEM Stock currently trades at $69.47 as of 12:22 p.m. ET.
In May, the company announced that it had completed the acquisition of GT Gold Corporation. “With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” said Newmont President and CEO Tom Palmer.
The acquisition of the Tatogga project has the potential to contribute to future significant gold and copper annual production for the company. There could also be further exploration opportunities within the land package. All things considered, will you buy NEM stock?Source: TD Ameritrade TOS Riot Blockchain Inc.
Next up, we have Riot Blockchain Inc. For some context, the company is primarily in the business of mining Bitcoin. As such, Riot is constantly looking to expand and upgrade its mining operations. Similar to gold stocks, cryptocurrency stocks like RIOT stock would be in focus when inflation is running high. Evidently, that appears to be the case today as RIOT stock is up by over 19% on Monday and currently trades at $37.05 as of 12:23 p.m. ET. Would now be the time to jump on RIOT stock?
Well, if anything, Riot remains as busy as ever on the operational front. Just last week, the company wowed investors with its May 2021 Bitcoin production update. Impressively, Riot produced 227 bitcoins throughout the month, marking a 220% year-over-year surge. On top of that, Riot continues to expand its mining operations in the U.S. as well. In late May, the company completed its acquisition of Whinstone U.S.’ Bitcoin mining facility in Rockdale, Texas.
According to Riot, it is currently the largest Bitcoin mining facility in North America. Overall, the company appears to be firing on all cylinders while also finding new ways to significantly expand its portfolio. Would this make RIOT stock a top buy for you now?Source: TD Ameritrade TOS