Global markets are grappling with the surge in oil prices triggered by the U.S.-Iran war. Given escalating tensions in the Middle East, fears of stagflation, a period of rising inflation and stagnant growth, are rising. In such a scenario, stocks in resilient sectors with stable cash flows and defensive business models can offer attractive returns. Here we will look at three such stocks that can be safer bets amid stagflation: Brookfield Infrastructure Partners (BIP), SLB (SLB), and RTX (RTX). These stocks score Wall Street’s Strong Buy consensus rating and can offer attractive upside.
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Brookfield Infrastructure Partners (NYSE:BIP) Stock
Brookfield Infrastructure operates a diversified portfolio of high-quality utilities, transport, midstream, and data assets that generate sustainable and increasing distributions for investors over the long term.
The company is confident in its ability to capitalize on the growing demand for AI infrastructure while delivering solid cash flows and strong returns for shareholders through annual distribution growth of 5% to 9%. BIP stock offers a dividend yield of about 5%.
Given its resilient business model, solid cash flows, and attractive yield, BIP can be considered a suitable investment during stagflation. Wall Street has a Strong Buy consensus rating on Brookfield Infrastructure stock based on five Buys and one Hold. The average BIP stock price target of $45 implies 28% upside potential. BIP stock has risen more than 18% over the past year.
SLB (NYSE:SLB) Stock
SLB, formerly known as Schlumberger, is an oilfield services company with an extensive presence in over 100 countries. SLB stock has risen more than 34% year-to-date, driven by its resilient performance, increased deployment of AI solutions, and the rapid expansion of the company’s Data Center Solutions business. Rising oil prices and dividends make stocks like SLB attractive during stagflation.
SLB recently announced a 3.5% increase to its quarterly dividend to $0.295. It offers a forward dividend yield of about 2.3%. With 15 unanimous Buys, SLB scores Wall Street’s Strong Buy consensus rating. The average SLB stock price target of $55.51 indicates 8% upside potential.
RTX Corp. (NYSE:RTX) Stock
Aerospace and defense companies like RTX are well-positioned to benefit from higher demand triggered by escalating geopolitical tensions. This makes it an attractive stock to consider amid stagflation fears. The company ended 2025 with a massive backlog of $268 billion, including $161 billion of commercial business and $107 billion of defense business.
Last week, Erste Group analyst Hans Engel initiated coverage of RTX stock with a Buy rating. The analyst noted that the company is benefiting from robust demand for engines and the global increase in defense spending. Engel added that RTX boosted its production capacity last year. He highlighted that RTX’s operating margin is better than its rivals and is moving higher. Engel noted that the company expects organic growth of around 6% in FY26, with earnings per share (EPS) of about $6.70.
Engel sees further upside in RTX stock as he believes that it is reasonably valued. RTX stock has risen 42% over the past year. It offers a dividend yield of about 1.5%. Wall Street has a Strong Buy consensus rating on RTX stock based on 10 Buys and three Holds. The average RTX stock price target of $227.45 indicates 21.5% upside potential.
