Three Stocks to Consider Amid Trade War Uncertainty

In the midst of an unpredictable trade war, focusing on companies that provide essential goods or are less reliant on foreign manufacturing can be a sound strategy. While no stock is entirely immune to economic disruptions, the following three companies appear more insulated than others.

Netflix

Netflix (NASDAQ: NFLX) operates without manufacturing or selling physical products. Its streaming video services avoid the complications of tariffs since content does not need to cross borders. Primarily, it generates revenue through subscriptions.

In its Q1 report, Netflix maintained a positive outlook for the second quarter, predicting a year-over-year revenue growth of 15.4%. The diluted earnings per share is projected at $7.03, rising from $4.88 from the previous year. However, a shift in consumer spending due to increased expenses might lead them to reduce discretionary subscriptions, impacting Netflix’s growth. Additionally, adverse effects from tariffs could hinder expansion in international markets. Nevertheless, the company remains relatively insulated from trade war impacts.

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Walmart

In contrast to discretionary goods, necessity often remains unaffected by tariffs. As the largest supermarket chain in the U.S., Walmart (NYSE: WMT) stands to benefit from this dynamic.

The company’s extensive brick-and-mortar presence provides a competitive edge despite the ongoing transition to online shopping. Walmart’s store network allows it to serve customers efficiently, enhancing its online sales, which increased by 16% globally in the last quarter. The company’s revenue has consistently grown, with Walmart shares rising approximately 120% over the past five years. So far in 2025, shares are up by 6.3%, while the S&P 500 has declined by 5.5%.

For its fiscal 2026 outlook, Walmart is predicting a net sales increase of 3% to 4%. This consistency makes it a reliable investment, particularly in a market troubled by tariffs, as a significant portion of its products consists of everyday essentials.

Essential Utilities

Typically, utility stocks do not generate heightened excitement, but this year, Essential Utilities (NYSE: WTRG) has outperformed the S&P 500.

Offering water services and natural gas across nine states, the company provides essential resources and currently pays a 3.2% dividend. In challenging times, water remains a fundamental necessity. The stock has gained more than 12% year to date.

Except for a weaker performance in 2023, Essential Utilities has shown respectable growth. Management anticipates adjusted earnings per share to grow at an annual rate of 5% to 7% through 2027. While this stock may seem less appealing in a bullish market due to slower growth, it provides stability amidst tariffs and market pessimism, making it a prudent choice for conservative investors.

Conclusion

Our analyst team continues to monitor market shifts and has identified stocks that may offer strong potential. Staying aware of essential investments can be beneficial, especially during uncertain economic times.

David Butler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Walmart. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.