FINANCE
Two Stocks to Watch During Tariff Turmoil
USA, OrlandoFri Apr 04 2025
The market is in a bit of a panic due to tariffs. Investors are looking for safe havens. Two stocks stand out as potential winners in this chaotic environment. They are Eaton and Texas Roadhouse. These companies have unique strengths that could help them weather the storm. Eaton is a powerhouse in the electrical equipment industry. It has a strong backlog of orders. This means customers are eager to buy its products. Eaton's equipment is in high demand. This gives the company pricing power. Pricing power is the ability to raise prices without losing customers. Eaton's equipment is crucial for data centers, industrial complexes, and utilities. This makes it a essential player in the market. The company's strong position allows it to pass on tariff-related costs to customers. This is a big advantage in a tariff-driven market sell-off. Eaton's stock has taken a hit recently. This could be a good time to buy. The company's strong fundamentals make it a solid investment. It is a good choice for investors looking to ride out the tariff storm.
Texas Roadhouse is another stock to watch. It generates nearly all its revenue in the U. S. This means it is less exposed to tariffs. The company sources most of its beef domestically. This is a big plus in a tariff-driven market. Texas Roadhouse caters to value-seeking consumers. These are customers who want quality food at an affordable price. This could be a winning strategy in a slowing economy. The company has a share buyback program. This could help support its stock price in rocky times. Texas Roadhouse saw a boost in same-store sales in March. This is a positive sign. However, this acceleration could be temporary. The economy could slow down due to tariffs. This could impact Texas Roadhouse's sales. Despite this risk, Texas Roadhouse is a solid investment. It has a strong business model and a loyal customer base.
Investors should consider adding these stocks to their portfolios. They have the strength to weather the tariff storm. Eaton's pricing power and strong backlog make it a solid choice. Texas Roadhouse's domestic focus and value proposition are big pluses. Both companies have the potential to outperform in a tariff-driven market sell-off. Investors should do their own research. They should consider their own risk tolerance and investment goals. These stocks could be a good addition to a diversified portfolio. They offer a mix of growth and stability. This could be just what investors need in these uncertain times.
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questions
How can one be certain that Eaton's pricing power will be sufficient to pass on tariff-related costs to customers?
What evidence supports the claim that Texas Roadhouse's value-seeking consumers will continue to patronize the chain despite economic uncertainty?
How does the backlog at Eaton translate to sustained revenue growth in the face of tariff-driven market volatility?