As if investors didn’t have enough to worry about, the Trump tariffs have gone into effect. As other nations begin to retaliate, this could be the initial battle in a prolonged trade war. Stocks are sinking across the board consequently, and that includes some of the top names from 2024, which don’t look as magnificent in 2025.
Tariffs put pressure on corporate earnings and consumer spending, which is leading to cries of recession. However, what makes this particular tariff program so unsettling is its seemingly random, unpredictable nature. Are the tariffs being used to drive down interest rates? Are they being used to drive onshore manufacturing? Or are they, as President Trump says, about leverage to achieve policy objectives?
It makes for an uncertain time, and markets hate uncertainty.
It’s only natural to be concerned, but this isn’t the time to panic. Having discipline and a diversified outlook can help you find stocks that are likely to move higher even as the effects of tariffs start to take effect. Here are three names to consider.
1. Fortinet: A Defensive Play on the AI Trade
Cybersecurity stocks are one area for investors to look for stocks that are likely to grow in an uncertain tariff environment. Fortinet (NASDAQ:FTNT) is one of the top names to consider. The company is primarily focused on the hardware firewall niche through a unified platform.
Analysts are forecasting a significant upgrade cycle in 2026 and 2027. This should be a significant catalyst for a company that already has one of the best operating margins in the sector.
FTNT stock is also one of the most upgraded stocks. As of March 4, 2025, the Fortinet analyst forecasts on MarketBeat had a consensus price target of $103.72, which is about 3% lower than its current price. However, in the last 30 days, analysts have raised their price targets to levels that would give the stock an upside of around 20%.
Investors are wondering if the AI trade has peaked. The emergence of China’s DeepSeek is weighing on some stocks focused on AI infrastructure. However, cybersecurity is less exposed to tariff risks, which will keep analysts focused on the increasing demand for cybersecurity caused by AI's growth.
2. Texas Roadhouse: This Restaurant Stock Just Flashed a Buy Signal
Restaurant stocks can be sensitive to tariffs for many reasons, including the cost of ingredients, supply chain snafus, and waning consumer demand.
However, this sector can be an example of a stock picker’s market, and Texas Roadhouse (NASDAQ:TXRH) is one of the best names to consider as discretionary dollars become tight.
Texas Roadhouse is simply one of the most well-run restaurant chains in the United States. And in the fourth quarter of 2024, it continued to post high single-digit year-over-year (YoY) growth in same-store sales. Plus, the company is still planning to open more restaurants in 2025.
And one of the reasons to buy TXRH stock now can be found in the company’s stock chart. Late in February, the stock hit a low around $169 which formed an almost perfect double-bottom pattern. This can be a bullish signal and sure enough in the seven trading days ending March 4, the stock is up about 10%.
3. Lowe’s: A Stable Stock for Long-Term Investors
Investing in retail stocks has been tricky in the past two years. Consumers have mostly absorbed inflation and rising interest rates. And now tariffs are driving up prices again.
Lowe’s Companies (NYSE:LOW) is exposed to the retail sector via the housing and home improvement market, and it’s been feeling the impact of a weak market on its top and bottom lines.
One of the best reasons to own Lowe's stock is its dividend. The company is a dividend king that has increased its dividend for 53 consecutive years, and it’s been increasing that dividend at an average annualized growth rate of around 14.8% in the last three years.
LOW stock has been essentially flat over the last twelve months. But if you zoom out on the company’s chart, you can see a bullish pattern where the stock may retreat over 10% but then come back to make new highs. That would be consistent with analyst sentiment, which has a consensus price target of $280.45 for LOW stock.