3 Inflation-Fighting Stocks Built for Higher Oil Prices

Key Points

• Elevated oil prices stemming from damaged global energy infrastructure are fueling persistent inflation, creating demand for inflation-resistant stocks with pricing power.
• TJX Companies, the largest off-price retailer, posted fiscal Q2 comps above 6% and targets up to $3 billion in share buybacks for 2026.
• Ollie's Bargain Outlet and Casey's General Stores offer inflation resilience through debt-free or self-funded models, share buybacks, and opportunistic growth strategies.

Inflation is here and unlikely to leave soon, creating a need among investors. The need is for inflation-resistant stocks to offset broader market volatility.

Today’s inflation issues are underpinned by elevated oil prices. Although the Iran conflict appears to be winding down, the damage to global oil infrastructure will remain. Estimates vary but tend to agree: global energy capacity is down by the double digits, and it will be at least a year before it comes back online in most cases. In extreme cases, estimates run as high as 5 years.

Oil demand outpaces supply by nearly 1 million barrels per day. This leads to declining stockpiles and upward pressure on oil prices, which in turn fuels inflation. Inflation-resistant stocks are so because they cater to essentials and necessities, things that people and businesses need all the time, regardless of what they cost. This provides pricing power to those companies, supporting their margins and cash flow and enabling capital returns that boost investor returns over time.

Ollie’s Bargain Outlets: A Cheap Play on Off-Price Retail

It’s easy to lump Ollie’s Bargain Outlet NASDAQ: OLLI in with the dollar store crowd, as it sells many of the same items. The difference is that Ollie’s is a bargain-basement, closeout model, whereas dollar stores are traditional retailers. Ollie’s is not tied to inventory or product lines, selling what it can find cheaply and providing value to its customers. It is more like a baby TJX Companies, nimble and flexible in the face of consumer headwinds, opportunistically taking advantage of deals as they arise.

Among Ollie’s attractions is its debt-free balance sheet and capacity to self-fund growth. Catalysts in 2026 include converting currently vacant Big Lots locations to the Ollie’s format and turning "dark-rent" expense into revenue-generating square footage, thereby widening margins. Cash flow is central to this investment thesis, as for all inflation-fighting stocks, as it enables value-building capital returns. Ollie’s does not yet pay dividends but may in the future; capital returns consist of share buybacks that reduced the count by more than 1% on a trailing 12-month basis as of the Q1 2026 earnings report.

The analysts' group created a headwind for Ollie’s stock by lowering price targets over the past year. However, the market overreacted, falling beneath the low end of the price target range, setting the stage for a rebound later this year.

A catalyst for a rebound could come in an upcoming earnings release if the company reports converted dark space or improved sales and margins. As it stands, the consensus calls for about 60% upside; institutions own nearly 100% of the shares and, on balance, are accumulating in 2026.

Casey’s General Stores: Generally a Buy, No Matter What

Casey’s General Stores NASDAQ: CASY is among the highest-quality growth stories on the market today. It is expanding a network of convenience stores through organic growth and acquisitions, self-funding the strategy, and paying investors to own it.

Its advantages include high-turnover items that enable rapid price responses, a rural moat, and high-margin prepared food items. It benefits from organic traffic and trade-down shopping and has an edge due to diminished competition stemming from its rural-oriented footprint.

Highlights in 2026 include the successful and rapid integration of its Fike’s acquisition and margin improvements in both inside and fuel sales.

Casey’s capital return includes dividends, distribution growth, and share buybacks. 2026 catalysts include the resumption of buybacks, which were paused in 2025 to conserve capital for acquisitions. The story as of mid-June is that the share count resumed decline on a quarterly and year-over-year basis and is expected to continue declining for the foreseeable future. The biggest risk is that the company will pause buybacks again, preserving capital for another value-building acquisition.

The TJX Companies: Top-Tier Inflation-Fighting Stock

The TJX Companies NYSE: TJX is a top-tier inflation-fighting stock, and that is saying something because inflation-fighting stocks are inherently quality stocks. Its strength lies in its scale and reach, as it is the largest off-price retailer of fashion and home goods.

It's growing at an industry-leading pace, underpinned by robust deal volume and consumer traffic. Its highlights include ample availability of in-demand, branded merchandise and strong organic traffic. Fiscal Q2 systemwide comps increased by more than 6%, well above company forecasts, driving a healthy profit margin.

TJX’s catalysts are numerous, including an increase in its buyback authorization. The company upped its 2026 target by a quarter-billion dollars, targeting up to $3 billion in total purchases or about 1.6% of the mid-June market cap. TJX’s dividend is also attractive, yielding 1.2% at record-high share prices. The distribution is also expected to grow; the company maintains a double-digit compound annual growth rate and has the capacity to sustain it in the coming years.