As the Market Fluctuates in Response to President Donald Trump's Tariffs, What Stocks Are Safe?

1 month ago 21

David Butler, The Motley Fool

Wed, Apr 30, 2025, 3:50 AM 4 min read

Netflix doesn't merchantability a carnal product, truthful it's somewhat insulated from the interaction of Trump's commercialized war.
People volition ever request groceries, and Walmart is the U.S. person successful that department.
Essential Utilities provides h2o and earthy state to communities successful 9 states.

When trying to prime stocks during an unpredictable commercialized war, I similar to look for companies that merchantability essentials oregon that aren't babelike connected overseas manufacturing oregon materials. It's important to constituent retired that nary banal is wholly harmless from the economical harm specified events tin cause, but these 3 are much insulated from its impacts than many.

Netflix (NASDAQ: NFLX) doesn't manufacture oregon merchantability immoderate carnal products, and its streaming video assets don't request to beryllium moved crossed borders successful ways that would taxable them to tariffs. It is successful the contented game, and relies connected subscriptions for astir of its revenue.

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When it reported its Q1 results, Netflix said that it wasn't changing its outlook for the 2nd quarter, during which it anticipates year-over-year gross maturation of 15.4%, and diluted net per stock of $7.03, up from $4.88 successful the prior-year period.

Still, Netflix could instrumentality a deed if consumers -- faced with higher expenses connected an array of different fronts -- commencement to chopped backmost connected discretionary spending successful the signifier of streaming subscriptions. Moreover, if President Donald Trump's tariffs person detrimental impacts overseas, that could wounded Netflix's maturation successful overseas markets. That said, I inactive presumption the institution arsenic being comparatively insulated from commercialized warfare headwinds.

picture of a tariffs motion and the American flag

My main mentation present is that tariffs are inconsequential to necessity. People request to bargain groceries, and Walmart (NYSE: WMT) is the country's largest supermarket chain.

I deliberation the standard of Walmart's brick-and-mortar stores gives it a dependable advantage, adjacent successful a retail situation that is shifting spending to online options. Its extended store number gives it proximity to a immense fig of shoppers. This makes it easier for the institution to present online orders, arsenic good arsenic to fulfill integer orders for pick-up. In all, its e-commerce income accrued 16% globally successful the 4th quarter.

On an yearly basis, Walmart's gross has grown consistently, and that shows successful its banal terms performance. Shares of Walmart person accrued by astir 120% implicit the past 5 years, and truthful acold successful 2025 they're up by 6.3% adjacent arsenic the S&P 500 is down by 5.5%.