President Donald Trump’s second term has brought a lot of volatility in the stock market. Tariffs brought some uneasiness on what they would mean for stocks — this had a major impact on the market. Stocks have since rebounded from those lows, but some investors are still wary about the future.
Investors who want more stability in a Trump economy can choose from various dividend stocks with competitive moats. However, it’s also good to consider what industries President Trump may focus on and how his policies can benefit certain businesses. These are some of the stocks that should stay stable in a Trump economy.
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Nvidia (NVDA)
Artificial intelligence (AI) is the hottest industry right now and President Trump wants to keep it that way. No chipmaker will benefit as much as Nvidia, as they supply the chips that big tech and data centers use.
Nvidia is the type of stock that should produce long-term gains regardless of the president. AI spending has been going parabolic and big tech is ready to spend additional money in the months and years ahead.
Nvidia also has a market cap above $4 trillion, so it takes a lot more effort to move the stock price than a $4 billion company. As Nvidia’s market cap gets bigger and the company continues to deliver strong results, it will be more difficult to push the stock down.
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Vital Farms (VITL)
No matter how expensive products and services get, people will still want eggs. Vital Farms is growing its farm network and focuses on ethically-produced eggs. The company works with more than 500 family farms in the United States, giving it more protection than most corporations from tariffs.
More than 26,000 stores sell Vital Farms’ eggs nationwide. Vital Farms recently announced that it remains on track to reach $1 billion in net revenue by 2027. The company also raised its guidance when reporting Q2 earnings.
Inflation can give eggs a boost and it’s one of the last goods people will give up. The stock has handily outperformed the S&P 500 with a 32% year-to-date gain.
Alphabet (GOOG, GOOGL)
It takes more to move Alphabet since it has a $2.5 trillion market cap and a low 22.4 P/E ratio will make things more difficult for the bears. Alphabet’s online advertising platform remains the top choice in the industry and its Google Cloud segment has many customers that simply can’t give that up.
Alphabet offers insulation from tariffs due to its heavy focus on software and its top-tier ad platform. While some businesses may pull back on ads, Alphabet will be less vulnerable to this type of shift than smaller ad platforms that don’t have Alphabet’s established record.
The company is also investing in growth-oriented segments like artificial intelligence and self-driving cars. Shares are up by almost 10% year-to-date.
Procter & Gamble (PG)
If you want stability, you may want to turn to a high-yield dividend stock that has been in business for almost 200 years. The consumer goods company has endured market panics, depressions, recessions and dozens of presidents.
Investors get to enjoy a 2.67% yield as they wait out market uncertainty. Just don’t expect to beat the stock market with this pick. Shares are only up by 15% over the past five years, but the tariff-induced drop wasn’t as dramatic for PG stock compared to other equities.
Walmart (WMT)
Walmart might take a hit from tariffs, but people still have to buy essential products and services. The company offers some of the lowest prices in the industry and makes more than half of its U.S. sales from groceries. This segment has some insulation from tariffs since Walmart sources a good chunk of these groceries domestically.
The big retailer has been in business since 1962, so it’s endured various market cycles. The push into advertising can boost the company’s profit margins and support higher dividend growth rates in the future. Walmart is also benefiting from Target’s struggles. As Target continues to lose ground, Walmart expands its market share and further establishes itself as a stock that can remain stable in a Trump economy.
Editor’s note: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com. Also each stock’s details were sourced from Yahoo Finance.
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This article originally appeared on GOBankingRates.com: 5 Stocks That Should Stay Stable in a Trump Economy
