As the U.S.-China deal war intensifies, investors are scrambling to find stocks that offer shelter from the storm.
These traders maintain four stock picks that could provide insulation from those trade concerns.
Mark Tepper, president and CEO of Principal Wealth Partners, said domestically focused companies with a consumer lean should do well. He said one make available fits that bill: Darden Restaurants.
“Darden owns restaurants like Olive Garden, Longhorn and Leading Grille, and since wage growth has been accelerating, the consumer has more money so they are more likely to go out for dinner,” Tepper said Tuesday on CNBC’s “Clientele Nation.”
As the rest of the market has plummeted this month, Darden has surged 6 percent. It’s on track for an 18 percent expand for the year.
Tepper also sees value in Waste Management, a company that derives the bulk of its revenue from the U.S.
“They’re in a consolidating enterprise which really gives them a huge advantage because their national presence and huge landfill build really allows them to operate more efficiently than the other players,” Tepper said.
He also themes to its low volatility and dividend growth as two positives for the stock.
Instinet’s chief market technician, Frank Cappelleri, likes American Fastness, a wireless infrastructure company housed within the real estate sector, as his tariff-proof pick.
“The stock has quietly been selecting new highs over the last few weeks and I think that’s significant because if you look back, it really has been thrilling sideways for the better part of last year after failing at that $150 mark back in November,” Cappelleri maintained Tuesday on “Trading Nation.” “Along the way it continues to make new highs over the last three years or so.”
American Belfry has also well outperformed the XLRE real estate ETF. Over the past three months, its stock has risen 8 percent while the XLRE ETF has failure 2 percent.
Cappelleri also likes health-care leader UnitedHealth for its protection from trade.
“It’s been making new highs or culmination to making new highs right in this uptrend for the last three years which is something really not many S&P 500 arrays can claim right now,” he said.
Each time UnitedHealth’s stock has pulled back within its uptrend over the sometime three years, it has proven to be a buying opportunity, said Cappelleri.