In this article, we will take a detailed look at the 10 Stocks Everyone is Talking About After Trump’s New Tariffs.
Countries are beginning to react to President Donald Trump’s new reciprocal tariffs and analysts believe things might not go according to the White House’s expectations, with American workers and consumers likely to see the impact of new duties.
Fred Kempe from Atlantic Council said in a latest program on CNBC that many countries can impose strong retaliatory tariffs against the US.
“I think we have to recognize what’s going to be implemented is going to be the highest effective tariff tariff rate since the 1930s. What also happened in the 1930s is you had new trading blocks, you had new trading partners finding their way to each other, and you could find that that happens as well. And let’s not forget what also happened in the 1930s afterwards. We hope that’s not going to happen now, but, um, you know, a trade war just really never serves, in the end, global stability, global peace.”
Kempe said investors failed to realize that Trump does not “care” about falling stock prices as he is looking to change the global trade system.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article, we picked 10 stocks Wall Street analysts are talking about. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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10. British American Tobacco PLC (NYSE:BTI)
Number of Hedge Fund Investors: 24
Tim Seymour, founder and Chief Investment Officer of Seymour Asset Management, said in a latest program on CNBC that he likes British American Tobacco PLC (NYSE:BTI).
“Smoke them if you got them. British American Tobacco now. Tobacco stocks have been running, and I think this one will continue to run.”
9. Duke Energy Corp (NYSE:DUK)
Number of Hedge Fund Investors: 46
Jessica Inskip from StockBrokers said in a latest program on Schwab Network that she recommends Duke Energy Corp (NYSE:DUK) as a dividend play to offset volatility.
“Longer term upside potential, but what’s great when we find these neutral-type securities is a dividend play. We’re in this more for not necessarily capital appreciation, but adding some income, smoothing out that volatility, getting some cash on the sidelines. When we find a bottom, we can deploy,” she said.
8. FedEx Corp (NYSE:FDX)
Number of Hedge Fund Investors: 55
FedEx Corp (NYSE:FDX) shares recently cratered after the company’s disappointing outlook. However, some analysts believe the stock is a buy for long-term and patient investors.
Ariel Rosa, Senior Analyst at Citi, said in a latest program on CNBC that most of the key issues facing FedEx Corp (NYSE:FDX) stem from macroeconomic uncertainties.
“It’s always a difficult balance. Right, and you see the stock price reaction; obviously, investors are not liking this cut to the outlook. That said, look, FedEx is a cheap stock, and it has been cheap for some time. So, for us, as we look at kind of where do we go with the stock in terms of our advice to investors, we’re continuing to say, look, it’s a buying opportunity, but you’re probably going to have to wait some time to see that play out and to see that earnings growth reacelerate. Because the reality is, FedEx has been executing well. They’ve had a number of cost-cutting initiatives underway, but the reality is FedEx, like any company, really can’t avoid a disappointing macro outlook. And amidst economic challenges, obviously, they’re going to be subject to that, and especially for a company like FedEx, which really is a bit of an economic bellwether. You see that playing out in their results.
So, the disappointing outlook is not so much a function of issues internal to FedEx; it’s really more a function of this challenging macro environment. So, the stock is cheap. We do think it’s a reasonable buy here, but for investors, you might have to be patient to see that materialize in the form of a higher share price.”
Sound Shore Management stated the following regarding FedEx Corporation (NYSE:FDX) in its Q3 2024 investor letter:
“Meanwhile, detractors of note for the quarter were connected by a common theme: signs of a slowing economy. NXP Semiconductors, a leading chip maker for the auto industry, was lower on uncertain auto demand and package hauler FedEx Corporation (NYSE:FDX) lagged on muted volume trends. Importantly, both of these companies have ways to increase earnings outside of the business cycle, but are not entirely immune to the recent slowdown. Business cyclicality requires investor patience and a long-term perspective – we have both.”
7. Chevron Corp (NYSE:CVX)
Number of Hedge Fund Investors: 63
Josh Brown, CEO of Ritholtz Wealth Management, explained in a latest program on CNBC the reasons he’s bullish on Chevron Corp (NYSE:CVX).
“I love it. So I think basically you’ve got a stock here approaching 52-week highs, 4% dividend yield, massive buyback in place, and two major overhangs that should be going away at some point this year. Strategically important assets to America all over the world, completely in sync with the president’s agenda. Berkshire Hathaway owns 118 million shares worth about $19 billion. Chevron is the fifth largest holding at Berkshire. It comprises about 6% of their portfolio. Come along with me and Warren Buffett—let’s own some Chevron.”
The two “overhangs” Brown talked about include Chevron potentially getting an extension from Trump for its projects in Venezuela and the increasing chances of it getting approval for its Hess acquisition.
6. Freeport-McMoRan Inc (NYSE:FCX)
Number of Hedge Fund Investors: 74
Jim Cramer in a latest program on CNBC said he’s bullish on Freeport-McMoRan Inc (NYSE:FCX) and talked about a potential demand driver for the mining company.
“There’s a JPMorgan piece out upgrading to overweight. Now, what’s important, David, is let’s say you believe in tariffs. Let’s say that everything is going wrong and you don’t like the president, or you love the president—it doesn’t matter. Freeport could have a 400 to 450 million EBITDA tailwind from tariffs. So, let’s say you’re like, “Woo, tariffs go buy some FCX.” And by the way, Jensen Huang is saying that copper is the dominant metal that goes into the data centers. It’s not in the report. The report mostly talks about, yes, Chinese stimulus, because a lot of the—almost the majority of copper is used in China. But I really like the call. The stock’s not that expensive. Go buy it.”
Diamond Hill Large Cap Concentrated Fund stated the following regarding Freeport-McMoRan Inc. (NYSE:FCX) in its Q4 2024 investor letter:
“Among our bottom individual contributors in Q4 were HCA Healthcare and Freeport-McMoRan Inc. (NYSE:FCX). Copper-focused mining company Freeport-McMoRan faced declining copper prices amid a generally challenging macroeconomic environment, including a strong US dollar, ongoing US-China trade tensions, the potential for increased tariffs under President-elect Trump’s administration and general post-election uncertainty.”