This Medical Device Giant Could Be Your Best Inflation Hedge

Some investors fear that President Donald Trump's aggressive tariffs will lead to economic troubles such as inflation. While things may or may not turn out that way, it's still a good idea to consider investing in companies that can help deal with the potential threat of rising prices. And Medtronic (NYSE: MDT), a medical device company, appears to be a good option in this regard. Let's consider why the healthcare giant looks attractive in the current environment.When prices rise due to inflation, businesses must contend with increased expenses, narrower margins, and lower profits. One way to mitigate this is to pass the higher costs onto customers by increasing prices; however, since everyone is facing the same issue, consumers are also seeking ways to save money. Few corporations can raise their prices without risking the loss of a meaningful number of customers.Companies with substantial pricing power can do so in normal times and in an inflationary environment. Medtronic fits the bill. As a leading medical device specialist, Medtronic has a comprehensive portfolio of products spanning multiple therapeutic areas. The company routinely launches new ones, and, crucially, it holds thousands of patents -- legal monopoly rights -- that protect its products from competition and grant it some degree of pricing power.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool