Vertex and Visa Outperform Amid Rising Inflation

Inflation has increased in 2026 compared to last year, largely due to soaring energy and oil prices. However, inflation may rise significantly once again if geopolitical tensions persist.

Investors need to be prepared by buying shares in companies that have historically performed well when prices rise. Two stocks to consider are Vertex Pharmaceuticals (VRTX) and Visa (V). Both companies have shown resilience in the face of inflation.

Vertex Pharmaceuticals, a biotech leader, offers products that are in high demand regardless of economic conditions. The company has a virtual monopoly on its core therapeutic area - treating cystic fibrosis - which grants it significant pricing power. Inflation may affect Vertex's business through higher costs, but the company can offset this by raising prices without losing customers.

Vertex's dominance in CF is not threatened by competition. Recently, Sionna Therapeutics' leading candidate flopped in a phase 2 clinical trial. Moreover, Vertex's most important medicines won't lose patent exclusivity until the late 2030s, ensuring consistent revenue from its CF business.

Visa, a leading financial services company, charges a fee for every transaction it processes. Higher inflation-driven prices mean higher revenue per transaction, making Visa well-positioned to outperform most others despite potential risks such as reduced transactions and regulatory issues.