Eva Ados, COO and Chief Investment Strategist at ERShares, recently appeared on CNBC’s–Trading Nation to discuss the current inflationary pressures. She highlights two under-the-radar stocks that can hedge against these inflationary concerns and continue to drive better results with an underlying entrepreneurial base.
“In these markets, we want stocks that can maintain their margins and pass along cost increases,” Eva Ados told CNBC’s “Trading Nation.”
According to Ados, Epam Systems Inc (NYSE: EPAM) and The Trade Desk Inc (NASDAQ: TTD) are two unique entrepreneurial company picks that can withstand inflationary pressures and maintain strong growth ahead. Epam Systems is an enterprise software company and IT powerhouse with a substantial global footprint that can take advantage of operating in lower-cost regions.
“That strategy has helped propel the stock over 4,400% in the past decade and can likely take it further [ahead]”, Ados said.
Ados’ second pick is the digital advertising company The Trade Desk, which has seen significant revenue and earnings growth due to the nature of the business. Up more than 200% since the start of 2020, Trade Desk is “benefiting from the shift we see towards programmatic advertising,” Ados said.
Companies want to automate their advertising and use data to make better decisions that drive optimal outcomes. The closer the ads are to the buying process linked to e-commerce, the greater the value they will provide for all stakeholders within the process.
“This company can withstand inflationary pressures and widen margins and continue to grow in the future.” Thus, the Trade Desk is well-positioned to win market share in the retail media and advertising space.
The takeaway is quite clear. Entrepreneurial companies such as the picks mentioned earlier work to cut costs, decrease heavy dependence on labor, and focus on elevating automatic AI platforms to make better business decisions in preparation for the inflationary environment.
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Credit to CNBC Trading Nation
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