The US financial market remains in chaos as we approach Trump’s “Liberation Day”.
The Republican Leader is expected to impose reciprocal tariffs against several countries on April 2, and. This will likely cause a major shake-up in the stock market.
Morgan Stanley says that there are still names which are better placed to weather Trump’s new policies on trade and any potential trade wars that could follow.
McDonald’s and Martin Marietta are among the most popular.
McDonald’s Corp. (NYSE: MCD).
Morgan Stanley believes that McDonald’s is a good place to go if you want to avoid tariffs-related risks in 2025.
MCD is one of the largest and most diverse international fast food chains.
Morgan Stanley analysts believe that McDonald’s local suppliers and global revenues could allow it to weather the new tariff environment this year better than its competitors.
MCD’s shares are currently paying a dividend yield of 2.26 percent, making them a very attractive investment, particularly if you bet on an economic downturn.
Wall Street has also given McDonald’s stock a “overweight rating” by consensus.
Yeti Holdings Inc (NYSE: YETI)
Yeti’s manufacturing is partly dependent on Mexico, which makes it vulnerable to Trump tariffs.
Morgan Stanley’s report argues that the manufacturer of outdoor products is still better placed to deal with the headwinds, as they can pass the increased costs on to their customers.
Analysts at Yeti remain optimistic about the stock, not only because of its pricing strength but also due to the attractive price at which it is trading.
YETI’s 52-week peak in December has seen a 25% drop.
Wall Street, despite the fact that the shares of this Austin-based firm currently do not pay dividends, is still bullish about them in anticipation of an upcoming recession.
Yeti’s average price goal is $44, which represents a 30% potential increase from the current level.
Martin Marietta Materials Inc (NYSE: MLM)
Morgan Stanley believes this industrial stock is well positioned to handle Trump’s tariffs because it, like Yeti, has price power.
Analysts argued that the “cheapest and easiest” solution to new tariffs was to simply pass on higher costs to consumers.
Martin Marietta, like YETI’s stock, has lost over 20 percent since November. This makes the company attractive from a valuation perspective.
The industrial giant also pays a 0.65% dividend.
Wall Street has rated shares of Martin Marietta Materials “overweight”.
Analysts see a potential upside of more than 25 percent from the current level.
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