7 Stocks with the Pricing Power to Push Through High Inflation - 1 of 7

#1 - Advance Auto Parts (NYSE:AAP)

The first stock on our list is Advance Auto Parts (NYSE:AAP). The car parts company provides an essential service to its retail and commercial customers. Car maintenance is becoming increasingly more complicated. However, do-it-yourselfers still turn to the company for its products and services.

This was particularly evident as supply chains were disrupted due to the Covid-19 pandemic. With automakers unable to deliver new vehicles to dealerships, used car prices soared, as did the need for consumers to make their current cars run longer.

And on its earnings call in May 2022, CEO Tom Greco said the company’s commercial customers tend to base their purchase decisions on parts availability, customer service, speed, and reliability more than on price, allowing the customer to implement a strategic pricing plan to combat inflation.

The price per share of AAP stock is up 84.9% in the five years ending in July 2022. The company pays a dividend of $6.00 per share annually with an impressive dividend yield of over 3%.

About Advance Auto Parts

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts. Read More 

Current Price

$77.20

Consensus Rating

Reduce

Ratings Breakdown

1 Buy Ratings, 16 Hold Ratings, 2 Sell Ratings.

Consensus Price Target

$70.18 (9.1% Downside)