3 Stocks That Could Hold Up Best If Oil Stays Near $100

Oil back at US$100 a barrel has pushed inflation worries back onto center stage, and that has put fresh attention on companies tied to everyday spending. The US Inflation Beneficiaries (Consumer Staples & Discount Retailers) screener focuses on stocks that sit in the path of essential demand and value hunting when budgets are tight. Some of these businesses may feel cost pressure, while others could see steadier traffic as shoppers trade down or stick to basics. This article will walk through 3 stocks from the screener that appear especially exposed to the latest spike in energy prices and inflation expectations.

Supply Network (ASX:SNL)

Overview: Supply Network (ASX:SNL) supplies aftermarket truck and bus parts across Australia and New Zealand under the Multispares brand, and supports operators with services such as parts interpretation, procurement, supply management, and problem solving.

Operations: Supply Network generates about A$378.4m in revenue from providing aftermarket parts for the commercial vehicle market, with most sales in Australia and a smaller contribution from New Zealand.

Market Cap: A$1.39b

Supply Network sits in an interesting spot for inflation focused investors, combining exposure to essential freight activity with financial metrics that point to efficient use of capital. Earnings growth over 5 years of 24.2% per year and a current ROE of 28.2%, with forecasts around 35.5% in 3 years, suggest the business has been converting demand for replacement parts into solid profitability, even as net profit margins hold near 11.4%. The stock trades below one estimate of fair value, yet on a relatively high P/E. This raises questions about how much optimism is already priced in. In addition, board changes and reliance on higher risk funding mean there is more to weigh up before deciding how resilient Supply Network might be if inflation and funding costs stay elevated.

Supply Network’s high ROE and earnings growth hint at a powerful engine, but the share price and funding mix raise fresh questions. Scan the analyst forecasts for Supply Network next to its valuation and see what the market might be missing.

Wickes Group (LSE:WIX)

Overview: Wickes Group (LSE:WIX) is a UK focused home improvement retailer that supports customers across trade, design and installation, and DIY projects, selling everything from kitchens and bathrooms to building materials, solar installations, and everyday repair essentials through its stores, website, and mobile apps.

Operations: Wickes Group generates about £1.6b in revenue from retailing home improvement products and services, all from the United Kingdom.

Market Cap: £427.0m

Wickes Group operates in an inflation conscious market, where its value focused home improvement offer can appeal to households and tradespeople looking to stretch budgets. Higher energy costs and uncertainty can push more projects towards cost control and maintenance rather than large upgrades. Earnings have recently improved, profit margins are higher than last year, and the stock trades on a lower P/E than many UK specialty retail peers, even after solid earnings growth. At the same time, investors need to weigh cost pressures, a weaker Design & Installation segment, high reliance on external borrowings, and an uneven dividend record. That mix of improving fundamentals, active store investment, and clear risk factors suggests there is more to the Wickes story than the headline valuation alone.

Wickes Group’s improving earnings and lower P/E suggest that the market may not be fully pricing in its value focused model, while cost pressures and a softer Design & Installation arm remain important factors. The full picture sits inside the analysis report for Wickes Group

GrainCorp (ASX:GNC)

Overview: GrainCorp (ASX:GNC) is a century old agribusiness that stores, trades, and processes grains and oilseeds, while also supplying food oils, animal nutrition products, and renewable fuel feedstocks to customers across Australasia and global markets.

Operations: GrainCorp generates about A$5.5b in revenue from Agribusiness and A$2.0b from its Nutrition & Energy segment, partly offset by A$0.4b in eliminations within the group.

Market Cap: A$1.2b

GrainCorp sits at the intersection of food security and energy transition, which becomes more interesting when oil prices spike and inflation worries resurface. The stock combines a low P/S of 0.2x and a share price well below one estimate of fair value with record oilseed crush volumes, expanding animal nutrition capacity, and new revenue streams from agri energy partnerships and diversified port use. At the same time, recent earnings have been soft, dividends are not well covered by earnings or free cash flow, and weather, global competition, and external borrowing all add risk. For investors watching inflation and food supply, the mix of income potential, operational upgrades, and clear pressure points makes GrainCorp a company worth a closer look.

GrainCorp’s low P/S and agri energy exposure suggest that the market may be missing a larger story about food and fuel pricing. Get the full context inside the analysis report for GrainCorp

The three stocks covered here are just a starting point, and the full US Inflation Beneficiaries screener surfaced 25 more companies with equally compelling stories across essential goods and discount retailing that could fit different portfolio goals. To identify the highest conviction plays for your own approach, unlock filters on margins, balance sheet strength, dividends, and inflation related catalysts inside the US Inflation Beneficiaries (Consumer Staples & Discount Retailers) screener so you can analyze the narratives that matter most to you.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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