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3 Stocks to Buy as Inflation Pressures Fade Heading Into 2026
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Key Takeaways
Cooling inflation is lowering raw material, energy and freight costs, easing margin pressure across sectors.
Lower input costs aid operating leverage, allowing companies to lift margins while keeping pricing discipline.
UNFI, FDX and LTM are well-positioned to benefit as cost relief translates into stronger profits.
As inflationary pressures continue to moderate across major economies, price stability is gradually returning to markets that were once strained by steep cost pressures. With global inflation cooling and commodity prices retreating from multi-year highs, many companies are entering a more favorable operating environment, marked by lower input costs and improving profit margins heading into 2026. This shift is especially significant for sectors with heavy exposure to raw materials, energy and logistics expenses, areas that have been among the largest drags on corporate margins through the inflationary surge.
As raw materials, energy and freight costs stabilize or decline following peak inflation disruptions, a growing number of companies are positioned to translate cost relief directly into stronger financial performance. Several sectors now stand out as clear beneficiaries of this transition.
Sectors Benefiting From Easing Prices
The consumer staples sector presents a compelling opportunity as key commodity input costs tied to agricultural products, including dairy, sugar, vegetable oils and grains, move lower. As global food prices decrease, food processors, packaged-goods manufacturers and restaurant operators are increasingly positioned to reclaim margins that were compressed in periods of elevated input inflation.
Food processing companies like Kraft Heinz Company (KHC - Free Report) and packaged-goods companies rely heavily on these raw materials as core cost components. Falling ingredient prices reduce the cost of goods sold, directly bolstering the gross margin, while stable shelf pricing preserves revenues. In a still price-sensitive consumer environment, this dynamic allows companies to either preserve pricing power or redeploy margin gains into brand investment, innovation and marketing to support long-term growth.
Capital Goods and manufacturing companies also stand to gain from easing inflation. Manufacturers that are net consumers of energy and commodities, including chemical, plastics and heavy machinery producers, benefit from lower prices for petroleum-based inputs, natural gas, industrial metals and freight. Construction and industrial companies similarly benefit as steel, cement and other building materials become more affordable, lowering project costs and improving returns on new capital investments. With input costs easing, companies can focus on efficiency gains and product innovation while keeping end-market pricing disciplined.
Airlines and logistics companies represent another classic beneficiary of easing price pressures, as fuel remains one of their largest operating expenses. With crude oil prices well below prior peaks, major carriers and delivery companies are positioned to see meaningful operating leverage. Fuel savings flow directly to the bottom line, reducing operating costs per available seat mile for airlines and per parcel mile for logistics providers.
Against a backdrop of stable pricing and improving volume trends, companies like Delta Air Lines (DAL - Free Report) and FedEx Corp. (FDX - Free Report) are well-positioned for margin expansion as economic activity normalizes. These savings can also be reinvested into fleet upgrades, network optimization and shareholder returns, further strengthening their financial profiles heading into 2026.
Our Picks
Here are three stock picks that clearly illustrate how declining input costs are helping companies regain margins as inflation pressures fade heading into 2026.
United Natural Foods (UNFI - Free Report) : The company is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. The company is regaining margins as inflation pressures ease and input costs normalize. In first-quarter fiscal 2026, the company expanded the gross margin by roughly 20 basis points (bps) year over year, supported by improved procurement conditions, lower shrink and network optimization initiatives.
As food and logistics cost volatility declines, UNFI is converting better pricing discipline and operational efficiency into higher EBITDA, stronger free cash flow and rapid deleveraging. The Zacks Consensus Estimate for UNFI’s fiscal 2026 revenues and EPS indicates increases of 1% and 187.3%, respectively, from the year-ago period’s reported levels. Earnings estimates for fiscal 2026 have been northbound in the past 30 days. The company delivered an earnings surprise of 52.1%, on average, in the trailing four quarters. UNFI currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
FedEx: The company is the leader in global express delivery services. FedEx is realigning its costs under a companywide initiative called DRIVE, which resulted in annual cost savings of $2.2 billion in fiscal 2025. FDX is a clear margin recovery story as inflation pressures fade and key input costs decline. In second-quarter fiscal 2026, lower fuel expenses, structural cost reductions under Network 2.0 and improved package yields drove operating margin expansion to nearly 7% on an adjusted basis.
With fuel and transportation cost volatility easing, FedEx is converting operating leverage into higher earnings, stronger cash flow and an improved full-year outlook. The Zacks Consensus Estimate for FedEx’s fiscal 2026 revenues indicates an increase of 4.6% from the year-ago period’s reported level. Earnings estimates for fiscal 2026 have been northbound in the past 30 days. The company delivered an earnings surprise of 2%, on average, in the trailing four quarters. FDX currently has a Zacks Rank #2.
Image Source: Zacks Investment Research
LATAM Airlines Group (LTM - Free Report) : The company is Latin America’s leading airline. LATAM Airlines is benefiting from its lean cost structure, expanding operations and strategic partnerships. Improvement in air travel demand and normalization of economic activities bode well for LATAM's top line. LTM is regaining margins as easing inflation and lower fuel costs support operating leverage. In third-quarter 2025, a 4.7% year-over-year decline in jet fuel expenses helped drive an adjusted operating margin of 18.1%, even as capacity expanded.
With unit costs broadly stable and fuel volatility moderating, LATAM is translating cost discipline into stronger profitability, cash generation and balance-sheet strength. The Zacks Consensus Estimate for LTM’s 2026 revenues and EPS indicates increases of 10.1% and 17.8%, respectively, from the year-ago period’s reported levels. Earnings estimates for 2026 have been unchanged in the past 30 days. The company delivered an earnings surprise of 29.8%, on average, in the trailing four quarters. LTM currently has a Zacks Rank #2.
Image Source: Zacks Investment Research
Bottom Line:
These three stocks, spanning consumer staples, logistics and transportation, highlight how declining input costs can restore margins and strengthen financial performance. As inflation eases, companies with high exposure to raw materials, energy and logistics costs are well-positioned to turn cost relief into durable earnings growth.
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3 Stocks to Buy as Inflation Pressures Fade Heading Into 2026
Key Takeaways
As inflationary pressures continue to moderate across major economies, price stability is gradually returning to markets that were once strained by steep cost pressures. With global inflation cooling and commodity prices retreating from multi-year highs, many companies are entering a more favorable operating environment, marked by lower input costs and improving profit margins heading into 2026. This shift is especially significant for sectors with heavy exposure to raw materials, energy and logistics expenses, areas that have been among the largest drags on corporate margins through the inflationary surge.
As raw materials, energy and freight costs stabilize or decline following peak inflation disruptions, a growing number of companies are positioned to translate cost relief directly into stronger financial performance. Several sectors now stand out as clear beneficiaries of this transition.
Sectors Benefiting From Easing Prices
The consumer staples sector presents a compelling opportunity as key commodity input costs tied to agricultural products, including dairy, sugar, vegetable oils and grains, move lower. As global food prices decrease, food processors, packaged-goods manufacturers and restaurant operators are increasingly positioned to reclaim margins that were compressed in periods of elevated input inflation.
Food processing companies like Kraft Heinz Company (KHC - Free Report) and packaged-goods companies rely heavily on these raw materials as core cost components. Falling ingredient prices reduce the cost of goods sold, directly bolstering the gross margin, while stable shelf pricing preserves revenues. In a still price-sensitive consumer environment, this dynamic allows companies to either preserve pricing power or redeploy margin gains into brand investment, innovation and marketing to support long-term growth.
Capital Goods and manufacturing companies also stand to gain from easing inflation. Manufacturers that are net consumers of energy and commodities, including chemical, plastics and heavy machinery producers, benefit from lower prices for petroleum-based inputs, natural gas, industrial metals and freight. Construction and industrial companies similarly benefit as steel, cement and other building materials become more affordable, lowering project costs and improving returns on new capital investments. With input costs easing, companies can focus on efficiency gains and product innovation while keeping end-market pricing disciplined.
Airlines and logistics companies represent another classic beneficiary of easing price pressures, as fuel remains one of their largest operating expenses. With crude oil prices well below prior peaks, major carriers and delivery companies are positioned to see meaningful operating leverage. Fuel savings flow directly to the bottom line, reducing operating costs per available seat mile for airlines and per parcel mile for logistics providers.
Against a backdrop of stable pricing and improving volume trends, companies like Delta Air Lines (DAL - Free Report) and FedEx Corp. (FDX - Free Report) are well-positioned for margin expansion as economic activity normalizes. These savings can also be reinvested into fleet upgrades, network optimization and shareholder returns, further strengthening their financial profiles heading into 2026.
Our Picks
Here are three stock picks that clearly illustrate how declining input costs are helping companies regain margins as inflation pressures fade heading into 2026.
United Natural Foods (UNFI - Free Report) : The company is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. The company is regaining margins as inflation pressures ease and input costs normalize. In first-quarter fiscal 2026, the company expanded the gross margin by roughly 20 basis points (bps) year over year, supported by improved procurement conditions, lower shrink and network optimization initiatives.
As food and logistics cost volatility declines, UNFI is converting better pricing discipline and operational efficiency into higher EBITDA, stronger free cash flow and rapid deleveraging. The Zacks Consensus Estimate for UNFI’s fiscal 2026 revenues and EPS indicates increases of 1% and 187.3%, respectively, from the year-ago period’s reported levels. Earnings estimates for fiscal 2026 have been northbound in the past 30 days. The company delivered an earnings surprise of 52.1%, on average, in the trailing four quarters. UNFI currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
FedEx: The company is the leader in global express delivery services. FedEx is realigning its costs under a companywide initiative called DRIVE, which resulted in annual cost savings of $2.2 billion in fiscal 2025. FDX is a clear margin recovery story as inflation pressures fade and key input costs decline. In second-quarter fiscal 2026, lower fuel expenses, structural cost reductions under Network 2.0 and improved package yields drove operating margin expansion to nearly 7% on an adjusted basis.
With fuel and transportation cost volatility easing, FedEx is converting operating leverage into higher earnings, stronger cash flow and an improved full-year outlook. The Zacks Consensus Estimate for FedEx’s fiscal 2026 revenues indicates an increase of 4.6% from the year-ago period’s reported level. Earnings estimates for fiscal 2026 have been northbound in the past 30 days. The company delivered an earnings surprise of 2%, on average, in the trailing four quarters. FDX currently has a Zacks Rank #2.
Image Source: Zacks Investment Research
LATAM Airlines Group (LTM - Free Report) : The company is Latin America’s leading airline. LATAM Airlines is benefiting from its lean cost structure, expanding operations and strategic partnerships. Improvement in air travel demand and normalization of economic activities bode well for LATAM's top line. LTM is regaining margins as easing inflation and lower fuel costs support operating leverage. In third-quarter 2025, a 4.7% year-over-year decline in jet fuel expenses helped drive an adjusted operating margin of 18.1%, even as capacity expanded.
With unit costs broadly stable and fuel volatility moderating, LATAM is translating cost discipline into stronger profitability, cash generation and balance-sheet strength. The Zacks Consensus Estimate for LTM’s 2026 revenues and EPS indicates increases of 10.1% and 17.8%, respectively, from the year-ago period’s reported levels. Earnings estimates for 2026 have been unchanged in the past 30 days. The company delivered an earnings surprise of 29.8%, on average, in the trailing four quarters. LTM currently has a Zacks Rank #2.
Image Source: Zacks Investment Research
Bottom Line:
These three stocks, spanning consumer staples, logistics and transportation, highlight how declining input costs can restore margins and strengthen financial performance. As inflation eases, companies with high exposure to raw materials, energy and logistics costs are well-positioned to turn cost relief into durable earnings growth.