Buy quality tech stocks that are immune to high inflation and rates, Trivariate Research says

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Stock Markets,Keysight Technologies Inc,Procore Technologies Inc

Trivariate Research shared a list of high-quality tech stocks that have a near-zero correlation to inflation.

As inflation lingers at a generational high, some stocks stand out for their ability to help investors hedge against the effect of high interest rates better than others. That's the message from Trivariate Research, which argues that with inflation staying stubbornly above the Federal Reserve's 2% annual target, investors have become increasingly worried about the impediments companies face from higher borrowing costs and the need to keep raising prices.

Shares of the electronic equipment manufacturer have fallen almost 10% this year. Even so, Morgan Stanley — which is overweight the stock — earlier this month named Keysight a "top pick." "We believe estimates for FY24 have bottomed post ~12% earnings cut last quarter, with valuation reasonable against exposure," Morgan Stanley analyst Meta Marshall wrote. "Stable orders plus view of recovery timeline could act as a catalyst.

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