Inflation Is Rising Again. History Says These 2 Stocks Are Among the Smartest Places to Hide

Inflation has increased in 2026 compared to last year, largely due to soaring energy and oil prices, although it has cooled down somewhat over the past two months. Still, we don't know what tomorrow holds. Inflation may rise significantly once again in the coming months if geopolitical tensions persist. Investors need to be prepared, and one way to do so is to buy shares in companies that have historically performed well when prices rise significantly. Two stocks to consider along those lines are Vertex Pharmaceuticals (NASDAQ: VRTX) and Visa (NYSE: V). Here's why these companies are worth investing in right now.

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1. Vertex Pharmaceuticals

Vertex Pharmaceuticals, a biotech leader, offers products that are in high demand regardless of economic conditions. However, unlike most of its peers, the drugmaker has a virtual monopoly in its core therapeutic area. Vertex Pharmaceuticals markets the only drugs that target the underlying causes of cystic fibrosis (CF), a rare disease that causes thick, sticky mucus to accumulate in the lungs, leading to difficulty breathing.

Vertex Pharmaceuticals' dominance in this field grants it significant pricing power. Inflation may affect the company's business in various ways, such as higher costs. But Vertex's strong pricing power allows the company to offset that by raising prices without losing many customers, especially since patients need to take these medicines regularly or risk significant health problems.

Some investors continue to fear that Vertex will eventually face stiff competition in CF, eroding its pricing power. But so far, practically every attempt to challenge the company has failed. Recently, Sionna Therapeutics, a small-cap biotech with otherwise highly promising CF medicines in its pipeline, announced that one of its leading candidates flopped in a phase 2 clinical trial.

Meanwhile, Vertex's most important medicines won't lose patent exclusivity until the late 2030s. The company could continue to deliver consistent revenue from its CF business until then. It's also worth noting that Vertex Pharmaceuticals is expanding and diversifying its lineup. The company's approved portfolio now includes Casgevy, a gene-editing medicine for two rare blood disorders, and Journavx, a therapy for acute pain.

Vertex could soon earn approval for povetacicept, a drug for IgA nephropathy, a kidney disease. And the company has other exciting candidates. Vertex has a strong, nearly impregnable business within its core market and an attractive pipeline elsewhere. The stock is well-positioned to navigate this inflationary period and deliver strong returns over the long run.

2. Visa

Visa, a leading financial services company, needs no introduction. The company is one of the leaders in providing a secure infrastructure that allows companies to process credit card transactions rapidly and safely. Visa charges a fee for every transaction it processes. Since fees are calculated as a percentage of the transaction amount, higher inflation-driven prices mean higher revenue per transaction, all else being equal.

That doesn't mean inflation can't harm the business in any way. It may reduce the total number of transactions Visa processes, and various government initiatives to combat inflation could also impact the company's operations. However, these factors affect every company, and given inflation's impact on Visa's per-transaction revenue, it could still outperform most others.

That said, Visa has not performed well this year as the company deals with legal and regulatory issues, including an antitrust lawsuit. Recent financial performance is helping it rebound, though. In the third quarter of its fiscal year 2026, ended June 30, Visa's revenue increased by 14% year over year to $11.6 billion, while its adjusted earnings per share were up 11% year over year to $3.32.

I expect Visa to deliver strong returns well over the long run, given its wide moat from network effects and the vast runway for growth remaining in the industry. What about the company's legal issues? Similar problems have rarely dealt a death blow to major corporations like Visa.

At any rate, given how slow the legal process is, the company can absorb the costs of these lawsuits over long periods since it generates significant earnings and cash flow. The bottom line: Visa is a great stock pick in the current environment, and investors who hold onto the company's shares for a while could be rewarded.

Prosper Junior Bakiny has positions in Vertex Pharmaceuticals and Visa. The Motley Fool has positions in and recommends Vertex Pharmaceuticals and Visa. The Motley Fool has a disclosure policy.