These stocks thrived during past inflationary periods and are primed to do so again

Published Wed, May 12 202111:17 AM EDTUpdated Wed, May 12 202111:51 AM EDT

With April's scorching inflation report, investors may want to consider the companies that are best prepared for higher prices. The closely-watched consumer price index report was released on Wednesday, showing price acceleration not seen since 2008. CPI spiked 4.2% from a year ago, compared to the Dow Jones estimate for a 3.6% increase. Excluding volatile food and energy prices, the core CPI increased 3% from the same period in 2020, compared to estimates of 2.3%. There are a confluence of catalysts for higher inflation right now: an economic reopening, $1.9 trillion more fiscal stimulus and a Federal Reserve willing to let the economy run hot. Inflation can change the way people invest because price pressures erode investors' capital, make companies' future profits less valuable and could push interest rates higher. Bank of America analyzed periods of past significant inflation and the impact on markets. The two most recent periods were from November 2003 to September 2006 and October 2010 to January 2012. The firm found that the S & P 500 had an annualized return of about 9% during those periods. CNBC Pro found the stocks that beat the market during those two inflationary periods. The listed stocks are also well-liked on Wall Street. These names have more than 70% buy ratings and at least 10% upside to their average 12-month price target. Take a look at CNBC Pro's list here. Two energy companies Valero Energy and ConocoPhillips both outperformed the S & P 500 during the last two periods when inflation rose. Plus, analysts expect Valero Energy and ConocoPhillips to rise more than 14% and more than 19% over the next 12-months, respectively. Teledyne Technologies also beat the market during the most recent periods of inflation. The company is also beloved on Wall Street with every analyst covering the stock calling it a buy. Teledyne is expected to rally more than 15% in the next year. Equinix , which is the leading global operator of colocation data centers, is another stock that has fared well in the face of inflation. Wall Street expects the stock to gain more than 16% in the next 12 months as the data center industry continues to boom. Companies have increasingly shifted digital workloads from in-house data centers to third-party facilities, especially during the pandemic. Shoe giant Nike also beat the S & P 500 during the last two inflationary regimes. The athletic retailer is expected to gain nearly 22% in the next year. Jefferies upgraded Nike to buy on Tuesday, saying in a note to clients that company appears poised to have healthy growth and expanding margins on several fronts within its business. Alaska Air Group is another inflation-proof pick on CNBC PRO's screen. Airlines are expected to see an uptick in demand as the vaccine rollout continues and the pandemic ends. Wall Street sees Alaska Air Group jumping nearly 30% in the next 12 months. SBA Communications , McKesson Corp. , Bio-Rad Laboratories , Danaher , Jacobs Engineering Group and FMC are among the other names on the inflation-proof portfolio list.

The Nike logo is seen on the Nike store on February 22, 2021 in New York City.

John Smith | Corbis News | Getty Images

With April's scorching inflation report, investors may want to consider the companies that are best prepared for higher prices.

The closely-watched consumer price index report was released on Wednesday, showing price acceleration not seen since 2008. CPI spiked 4.2% from a year ago, compared to the Dow Jones estimate for a 3.6% increase.

Excluding volatile food and energy prices, the core CPI increased 3% from the same period in 2020, compared to estimates of 2.3%.

There are a confluence of catalysts for higher inflation right now: an economic reopening, $1.9 trillion more fiscal stimulus and a Federal Reserve willing to let the economy run hot. Inflation can change the way people invest because price pressures erode investors' capital, make companies' future profits less valuable and could push interest rates higher.

Bank of America analyzed periods of past significant inflation and the impact on markets.

The two most recent periods were from November 2003 to September 2006 and October 2010 to January 2012. The firm found that the S&P 500 had an annualized return of about 9% during those periods.

CNBC Pro found the stocks that beat the market during those two inflationary periods.