Inflation ticked noticeably higher in August, with the Consumer Price Index (CPI) for all urban consumers ticking up +0.6% and +3.7% on an annual basis. The monthly uptick was the highest spike since May of last year and while markets seemed rather unphased it may be time to scope out companies that could capitalize on a high inflationary environment. Basic materials sector stocks are often worthy of consideration as rising commodity prices allow many of these companies to boost profits. Let’s take a look at three highly ranked basic materials stocks that may be able to capitalize on reaccelerating inflation. Image Source: U.S. Bureau of Labor Statistics Alpha Metallurgical Resources ( AMR Quick Quote AMR - Free Report) : Alpha Metallurgical Resources has profited immensely from higher commodity prices over the last few years. As a provider of metallurgical products to the steel industry, Alpha Metallurgical's bottom line remains robust but was expected to naturally contract as inflation eases. However, earnings estimates have started to rise again making Alpha Metallurgical’s stock very attractive. Over the last 60 days, Fiscal 2023 EPS estimates are up 6% and are now expected at what is still a very impressive $46.91 per share. Fiscal 2024 earnings are forecasted at $16.20 a share but estimates have jumped 7% in the last two months. More enticing, Alpha Metallurgical’s stock trades at just 4.3X forward earnings with the rising EPS estimates making shares of AMR look cheap at around $227. Image Source: Zacks Investment Research The Andersons ( ANDE Quick Quote ANDE - Free Report) : Another basic materials company to keep an eye on is The Andersons. Rising earnings estimates make Andersons stock attractive as well with the company being a regional grain merchandiser. Andersons showed signs of a strengthening operating environment in its most recent second quarter report in early August. Earnings of $1.52 per share beat Q2 estimates of $1.06 a share by 43% despite sales of $4.02 billion slightly short of expectations. Still, earnings estimates have soared since Andersons Q2 report. Fiscal 2023 earnings estimates have now climbed 22% over the last two months with FY24 estimates rising 10%. Image Source: Zacks Investment Research Carpenter Technology ( CRS Quick Quote CRS - Free Report) : Rounding out the list is Carpenter Technology which has the ability to benefit from higher metal prices. Including many steels, Carpenter Technology produces premium specialty alloys, provider metals, along with drilling tools. It's noteworthy that Carpenter Technology’s Steel-Specialty Industry is in the top 12% of over 250 Zacks industries. In correlation with a strong business environment, Carpenter Technology is witnessing expansive growth and post-pandemic recovery along its bottom line. In its current FY24, Carpenter Technology’s earnings are now anticipated to skyrocket 205% to $3.48 per share compared to $1.14 a share last year. Fiscal 2025 earnings are expected to dip -11% but estimates have remained higher over the last quarter. Image Source: Zacks Investment Research Bottom Line Keeping in mind that the basic materials sector often provides a nice hedge against inflation, these stocks look very attractive after today's CPI numbers. Rising earnings estimates have landed Alpha Metallurgical Resources, The Andersons, and Carpenter Technology stock a Zacks Rank #1 (Strong Buy) and their margins on commodities could expand amid reaccelerating inflation.