U.S. consumer prices increased by 4.2% year-over-year in May, the highest annual rise since 2023, driven largely by a 23.5% surge in energy costs compared to last year, according to the latest Consumer Price Index (CPI) report released Wednesday. The energy index saw a 3.9% increase month-over-month, raising concerns about inflation amidst ongoing geopolitical tensions in the Middle East.
Notably, gasoline prices jumped 7% month-over-month and 40% year-over-year, highlighting the significant impact of higher energy prices on consumer costs. In response to these trends, analysts have become increasingly optimistic about the earnings outlook for companies like Dow Inc. and Global Partners, which stand to benefit from elevated commodity prices and potential increases in demand for their products and services.
As a result, Dow has seen a 90-day increase in FY26 EPS estimates from a projected loss of $0.09 to a profit of $2.54 per share, while Global Partners is well-positioned to capitalize on higher fuel prices due to its extensive distribution network in the Northeast and Mid-Atlantic regions.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
