Target and Walmart recently reported first-quarter earnings that missed expectations and reflected the squeeze of rising costs in the current inflationary environment. It’s another hit when so much of the market is down and has advisors and investors looking for potential pockets of opportunity. “The questions we’re getting right now at VettaFi are really around the food and beverage segment: if you look at Target’s earning report, you saw that there was a lot of pain from the discretionary sector but that there were some bright spots when it came to their grocery business,” Crigger explained. The food and beverage industry has been one of the most overlooked performers in the first months of 2022 and is a beneficiary of an inflationary environment. Food and beverage stocks have been one of the best performers outside of energy this year. Three main drivers will continue to apply upward pressures on food prices looking ahead. According to Crigger, continuing inflationary pressures will still take time to unwind, even if they have peaked, continued supply chain disruptions, and the geopolitical impacts happening around the Russia-Ukraine war. “All that said, consumers still need to eat,” Crigger said, “so prices are going to stay high for some time.”