Top Consumer Stocks to Consider Amid Eased Trade Tensions
The market is stabilizing as trade tensions reduce, making it favorable to consider consumer goods stocks trading below their peaks. While tariffs pose ongoing risks, three stocks appear set for long-term success.
1. Apple (NASDAQ: AAPL)
Apple shares are down over 20% from earlier highs, facing concerns about tariffs and competition in artificial intelligence (AI). The possibility of losing a search revenue-sharing deal with Alphabet also looms.
The company’s ecosystem remains robust, encouraging iPhone upgrades as users replace aging devices. Although iPhone sales have slowed, their replacement cycle continues.
Apple’s service sector is increasingly significant, bringing in diverse revenue from the App Store, cloud services, subscriptions, and search ads. This segment experienced a 12% revenue increase last quarter, yielding a 75.7% gross margin, compared to just 3% growth and a 35.9% margin from products. Consequently, earnings growth outpaces overall revenue.
Despite trailing in AI, Apple often refines existing technologies. Its Android user base is less affluent, and the iOS ecosystem holds nearly 30% market share, ensuring strong revenue potential through continued partnerships.
2. LVMH Moët Hennessy – Louis Vuitton (OTC: LVMUY, OTC: LVMHF)
Shares of LVMH are more than 30% below their highs, despite owning many luxury brands, including Louis Vuitton and Tiffany & Co. Weak luxury spending in China and macroeconomic uncertainty have impacted its performance.
While demand in the wine and spirits segment has normalized, LVMH maintains considerable brand strength and pricing power, positioning it well for future growth. The luxury market continues to expand, particularly in emerging economies.
Currently, LVMH trades at a forward price-to-earnings (P/E) ratio under 21 based on 2025 estimates, suggesting it remains undervalued.
3. Crocs (NASDAQ: CROX)
Crocs shares are approximately 35% off their 52-week high, despite positive Q1 earnings. The company withdrew its full-year guidance amid tariff uncertainty.
Crocs has significant upside potential, especially if it successfully revives the HeyDude brand, which it acquired for $2.5 billion in 2022 but struggled with. Currently, it trades at a forward P/E ratio of 8.6.
Efforts to resolve issues with HeyDude include preventing unauthorized sales and improving marketing strategies. Growth for the Crocs brand remains steady, with international revenue rising by 12.3% and a notable 30% increase in China last quarter.
Investment Considerations for Apple
Before investing $1,000 in Apple, consider insights from financial analysts on preferred stocks. Apple was not included in a recent list of ten promising stocks.
Investing in stocks like Netflix or Nvidia, which were previously recommended, has yielded significant returns. As a point of reference, an investment of $1,000 in Netflix from 2004 would now be worth over $650,000.
The views expressed in this article are solely those of the author and do not reflect the views of Nasdaq, Inc.
