Navigating the Trade War: Defensive Stocks to Consider
In an ever-changing economic landscape, staying informed about market trends is crucial for investors looking to safeguard their portfolios. With the recent developments surrounding international trade, particularly the announcement of tariffs by President Donald Trump on steel and aluminum, many investors are searching for reliable sectors and stocks that could weather this storm. Enter Evercore ISI, an investment bank that has identified a collection of defensive stocks primed to navigate these turbulent waters.
The Trade War Landscape
On Sunday, President Trump signed an executive order implementing a 25% tariff on steel and aluminum imports, sparking immediate backlash from international allies. The European Union has already stated that it will impose retaliatory measures, intensifying global trade tensions. The ramifications of these tariffs are significant; not only do they disrupt supply chains, but they also cast a shadow over an already jittery financial market, characterized by persistent inflation and concerns about slowing economic growth.
Given this backdrop, it’s important to identify stocks that can potentially thrive regardless of external pressures. With a careful screening process, Evercore ISI focused on finding stocks that boast the following characteristics:
- Rated among the top 20% for low volatility
- Strong stock buyback activity
- High efficiency as measured by asset turnover and equity turnover
- Market capitalization exceeding $5 billion and listed on the Russell 3000 index
Stellar Stocks Worth Your Attention
Among the noteworthy stocks that emerged from Evercore ISI’s analysis are:
-
Apple Inc. (AAPL)
Apple has consistently been a strong performer in the market, with shares climbing approximately 21% over the past year, even in light of a recent 9% dip in early 2025. The tech giant’s robust stock buyback history—most notably a staggering $110 billion buyback authorization in May—demonstrates its commitment to returning value to shareholders. Analyst Amit Daryanani indicates that potential expansion in emerging markets and increased demand for the iPhone SE could catalyze growth, particularly as a sales slowdown in China looms. -
AbbVie Inc. (ABBV)
AbbVie, known for its flagship arthritis treatment Humira, is another noteworthy pick. The stock has risen 9.3% over the past year, yielding a competitive 3.44% dividend. Recent FDA approval of its drug Emblaveo, designed to treat complicated intra-abdominal infections, reinforces its growth trajectory. With a solid dividend and a robust pipeline of products, AbbVie positions itself well amid the uncertain market environment. -
MetLife (MET)
Insurance leader MetLife has exhibited resilience. With its diversified portfolio, the company remains a reliable option for investors looking for stability. Its consistent dividends and strategic asset management make it a candidate for defensive positioning against the market’s volatility. - Cencora (formerly AmerisourceBergen)
This drug wholesaler plays an essential role in the pharmaceutical supply chain. Known for its efficiency and strong foothold in healthcare logistics, Cencora’s restructuring and focus on partnerships in the healthcare sector can provide a safety net during market downturns.
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