Morgan Stanley’s Top 18 Tariff-Resilient Stocks to Weather Trade Tensions
Staff Editor Trade Tensions Resurface: Morgan Stanley Recommends Tariff-Resilient Stocks
As trade tensions between the United States and key trading partners Canada, Mexico, and China show signs of resurgence, global markets are experiencing increased volatility. Investors are growing concerned about the potential impact on inflation, interest rates, and corporate earnings. In response to this uncertain economic landscape, Morgan Stanley has issued a client note outlining an investment strategy focused on stocks resilient to tariffs.
The investment bank’s approach centers on companies with strong pricing power, capable of weathering the storm of potential trade disputes. Morgan Stanley analysts have identified stocks that can effectively pass on higher import costs to consumers and are better protected from tariff impacts compared to their industry peers.
Commerce Secretary Howard Lutnick recently hinted at possible tariff reductions, but uncertainty remains about the extent and duration of these changes. Adding to the complexity, new tariffs on European Union goods are anticipated, further complicating the global trade picture.
In light of these developments, Morgan Stanley has released a list of 18 stocks with “Overweight” ratings. An “Overweight” rating suggests that analysts believe these stocks should be held above their weight in the S&P 500 index.
The recommended stocks span various sectors and include well-known names such as Lululemon Athletica and Ulta Beauty in the consumer space, as well as technology companies like Twilio and Nutanix. Industrial firms Eaton and Trane Technologies also feature on the list, alongside healthcare equipment providers Boston Scientific and Procept BioRobotics.
Other notable inclusions are Martin Marietta Materials in the materials sector, Planet Fitness in consumer services, and Keysight Technologies in technology hardware and equipment.
Morgan Stanley’s analysts, including Alex Straton, Angel Castillo, Chris Snyder, Erik Woodring, Megan Alexander Clapp, Meta Marshall, Patrick Wood, and Simeon Gutman, have contributed to this comprehensive list of recommendations.
As trade tensions continue to evolve, Morgan Stanley’s strategy offers investors a potential roadmap for navigating the complex economic environment. By focusing on companies with strong fundamentals and the ability to withstand tariff pressures, investors may find opportunities for growth even in uncertain times.
However, as with all investment decisions, thorough research and consideration of individual financial goals and risk tolerance remain crucial. The coming months will likely provide further clarity on the direction of global trade policies and their impact on markets worldwide.
