3 ‘Strong Buy’ Stocks Analysts Recommend as Stagflation Fears Emerge

The U.S.-Iran war has sent oil prices up, triggering concerns of stagflation, a period of high inflation and slow economic growth. The job market slowdown has added to investors’ woes. In this scenario, analysts often recommend stocks in the energy sector as well as those that are defensive in nature, such as stocks in the consumer staples, utilities, and healthcare sectors.

Claim 70% Off TipRanks Premium

• Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

• Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Here, we will look at three such stocks: Viper Energy VNOM +2.90% ▲ , Diamondback Energy FANG +2.68% ▲ , and Abbott Laboratories ABT +0.69% ▲ , which are rated Strong Buy and could be safer bets amid potential stagflation.

Viper Energy (NASDAQ:VNOM) Stock

Viper Energy is focused on owning and acquiring mineral and royalty interests, primarily in the Permian Basin. The surge in oil prices due to tensions in the Middle East makes energy stocks like VNOM attractive. Moreover, VNOM recently announced a 15% rise in its annual base dividend to $1.52 per share. Based on the base and variable dividends paid over the past 12 months, VNOM offers a dividend yield of 4.76%.

Earlier this week, Wells Fargo analyst Hanwen Chang raised his price target for Viper Energy stock to $52 from $51 and reiterated a Buy rating. The 4-star analyst noted VNOM’s simplified, Permian-only royalty portfolio and a notably strengthened financial profile following the company’s non-Permian divestiture.

Overall, Wall Street has a Strong Buy consensus rating on Viper Energy stock based on 12 unanimous Buys. The average VNOM stock price target of $52.73 indicates 14.1% upside potential from current levels. Viper stock has risen about 20% so far this year.

Diamondback Energy (NASDAQ:FANG) Stock

Diamondback is an independent oil and natural gas company focused on the acquisition, development, and exploration of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin. Interestingly, Viper Energy is a subsidiary of Diamondback.

The company recently announced a 5% increase in its base dividend to $4.20 per share. In 2025, Diamondback declared base and variable dividends of $4.05 per share. It offers a dividend yield of 2.2%.

On Tuesday, Raymond James analyst John Freeman increased his price target for FANG stock to $240 from $210 and reiterated a Buy rating. The 5-star analyst increased his estimates for Diamondback to reflect higher crude prices due to the Iran conflict.  Overall, Wall Street has a Strong Buy consensus rating on Diamondback Energy stock based on 21 Buys and three Holds. The average FANG stock price target of $194.61 indicates about 4% upside potential.

Abbott Laboratories (NYSE:ABT) Stock

Healthcare giant Abbott Laboratories is focused on products in diagnostics, medical devices, nutritionals, and branded generic medicines. Generally, healthcare stocks are preferred during challenging economic periods due to the sector’s resilience.

Recently, UBS analyst Danielle Antalffy reiterated a Buy rating on Abbott stock with a price target of $158. The analyst expects the company’s structural heart business to see upside on a potential positive CHAMPION readout at the end of this month (presenting at the ACC event on March 28), which she believes the market is underappreciating today.

While ABT stock is down year-to-date following a disappointing Q4 report and 2026 outlook, mainly due to a revamped pricing strategy in Nutrition, and deceleration in key growth areas within MedTech, Antalffy is confident about the sustainability of double-digit Medical Device growth. He believes that the structural heart business is one area that is underappreciated.

With 15 Buys and one Hold, Abbott Laboratories stock scores a Strong Buy consensus rating. The average ABT stock price target of $137.67 indicates 24.4% upside potential. ABT offers a dividend yield of about 2%.

Disclaimer & DisclosureReport an Issue