Stagflation Risk Is Back — These 3 Stocks Can Help Defend Your Portfolio

Stagflation — an economic scenario where inflation accelerates while economic growth slows — could make a return after last being experienced in the U.S. economy in the 1970s, analysts have warned. The risk is being fanned by surging oil prices due to the escalating conflict in the Middle East and a weak U.S. job market.

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This article spotlights three stocks investors can bank on to ride out such a stagflation storm: Gossamer Bio GOSS -1.65% ▼ , Vital Farms VITL -1.09% ▼ , and Oklo OKLO -1.98% ▼ . These stocks were selected for their massive upside potential and Buy ratings from Wall Street analysts.

In addition, we chose them because they have the highest upside potential among the holdings in these three ETFs, which we have also highlighted as offering investors strong protection against stagflation.

Gossamer Bio GOSS -1.65% ▼

This is a California-based biotech company focused on developing and commercializing therapies for diseases that impact the immune system, cause inflammation, and cause cancer. The company’s current lead drug candidate is seralutinib, an inhaled treatment for pulmonary arterial hypertension.

While Gossamer’s shares have fallen over 85% since the start of the year, the top Wall Street analysts covering the stock have a Moderate Buy rating on the stock and currently see GOSS jumping by a massive 838.40% over the next 12 months. This is based on an average price target of $4.25.

**Vital Farms **VITL -1.09% ▼

This is a Texas-based agricultural farm products company that provides pasture-raised eggs and butter. It operates as an ethical food company.

Vital Farms’ shares are also down about 46% year-to-date. Yet, analysts have a Strong Buy rating on the stock, with its average price target of $35.33 implying about 105% upside.

**Oklo **OKLO -1.98% ▼

Oklo is a California-based nuclear startup with goals to provide commercial users with nuclear energy to meet their power needs. The company plans to deliver its first nuclear power plant by 2028 and has recently secured a 1.2 gigawatt supply deal from tech giant Meta META -3.89% ▼ .

Like the others in this group, Oklo’s shares are also down year-to-date, having fallen about 19% as of Friday afternoon. However, analysts consider OKLO a Strong Buy, with the shares offering about 106% upside based on an average price target of $119.71.

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