Inflation is front and center again, with the latest CPI report showing a 4.2% annual rise and energy costs jumping sharply. That mix can squeeze some companies while giving others more pricing power or demand resilience. For investors, the key question is which stocks are directly exposed to these moves in consumer prices and energy, and how that exposure could shape earnings risk or opportunity. This article pulls out three stocks tied to the recent CPI and energy spike, highlighting one that appears positioned to benefit and two where inflation pressure looks more like a headwind.

Ford Motor (F)

Overview: Ford Motor is a global automaker that designs, manufactures, and services Ford trucks, SUVs, commercial vans, cars, and Lincoln luxury vehicles, and also provides financing and leasing solutions that support vehicle sales to retail buyers, fleets, rental companies, and governments.

Operations: Ford generates most of its revenue from Ford Blue at about US$147.7b, with additional contributions from Ford Pro at about US$65.8b, Ford Credit at about US$13.5b, and Ford Model e at about US$7.1b, partly offset by around US$44.3b of unallocated amounts and eliminations.

Market Cap: US$55.1b

Ford Motor sits at the center of several uncomfortable crosswinds: rising energy costs may affect production and transport expenses just as high inflation can influence demand for big-ticket vehicles, while the company is still unprofitable and funding a sizeable debt load. The new Ford Energy and EV platforms, along with growing software and services under Ford Pro, represent a potential shift toward higher-margin and recurring revenue. However, execution risk is high, and supply issues, recalls, and tariff or trade uncertainty could all affect those potential benefits. Valuation signals and analyst enthusiasm around energy storage may be notable, yet a key question is whether these newer businesses can offset the pressure from legacy vehicles, financing risk, and a tougher macro backdrop.

Ford’s push into EVs and energy storage is accelerating just as inflation, rising costs and existing losses raise tougher questions about resilience. Before assuming the story is improving, review the 3 key rewards and 2 important warning signs (1 is major!)

Kroger (KR)

Overview: Kroger is one of the largest U.S. food and drug retailers, running supermarkets, multi-department and marketplace stores, price-focused warehouses, and fuel centers, while also selling its own branded foods across in store and online channels.

Operations: Kroger generates about US$148.6b in revenue from its U.S. retail operations, effectively all from the United States.

Market Cap: US$35.8b

Investors should watch Kroger because it sits where inflation in food and energy hits consumers hardest. It is also spending heavily on price cuts, e-commerce, and private label to defend share. Current profit margins are thin at 0.7%, earnings were hit by a US$2.9b one off loss, and management is openly concerned about unsustainable cost growth just as CPI and energy costs run hot. At the same time, e-commerce has turned profitable, retail media and Our Brands are gaining traction, and the dividend has been raised for 20 straight years. The tension between rising costs, aggressive price investment under a new CEO, and efficiency plans is a key factor in how Kroger’s inflation playbook may affect shareholder value.

Kroger’s thin 0.7% margins, heavy price cuts, and that US$2.9b one off loss could be masking deeper pressure on earnings quality, and the full 4 key rewards and 3 important warning signs hints at where that strain may surface next.

Duke Energy (DUK)

Overview: Duke Energy is a large U.S. utility that generates and delivers electricity across the Southeast and Midwest through coal, gas, nuclear, hydro, oil, and renewables, and also distributes natural gas and invests in pipelines, storage, and renewable natural gas projects.

Operations: Duke Energy generates about US$30.1b in revenue from Electric Utilities and Infrastructure and about US$3.2b from Gas Utilities and Infrastructure, with smaller contributions and eliminations, almost all from the United States at roughly US$32.7b in total revenue.

Market Cap: US$98.6b

Duke Energy gives investors a way to gain exposure to rising energy prices and persistent inflation through a regulated utility with a large nuclear fleet, growing data center power demand and supportive legislation for grid and generation investment, while offering a 3.35% dividend yield. At the same time, heavy use of debt funding, high capital needs for grid and generation projects and customer adoption of distributed solar and batteries keep pressure on cash flows and raise sensitivity to interest rates and policy shifts. With inflation elevated and energy prices higher, the mix of relatively stable earnings, policy support and clear risks may make Duke Energy a company worth a closer look for inflation-focused portfolios.

Duke Energy’s earnings profile, inflation link and 3.35% dividend yield suggest a story that could be more than a typical utility, but the real twist sits inside the 4 key rewards and 3 important warning signs (1 is major!)

Take Control of Your Investment Journey

If Kroger or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Alternatives Before Everyone Else?

Fresh ideas move first when momentum builds, and the best entries often pass quietly under the radar for now. Before the next breakout gets caught by the crowd, act now.

• Spot potential turnaround stories early by tapping into curated 22 elite penny stocks with strong financials that could be flying under most investors’ radars while it still matters.
• Ride the backbone of the AI boom by scanning hand picked 49 AI infrastructure stocks powering data centers and model training while sentiment is still building, not peaking.
• Find ideas built on sturdy cash flows with a focused list of solid balance sheet and fundamentals (48 results) so you are not reacting only after more investors rush in.

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.