Best stocks to own during a trade war, according to Evercore ISI

In the context of escalating trade tensions and the imposition of tariffs, investors often seek assets that can withstand or even benefit from such economic climates. Evercore ISI has identified several stocks that are relatively "immune" to the adverse effects of tariffs, offering potential safe havens for investors during trade wars.

Technology Sector: Apple (AAPL)

Evercore ISI highlights Apple Inc. (AAPL) as a resilient choice during trade conflicts. The company's robust supply chain management and strong brand loyalty enable it to navigate tariff challenges effectively. Notably, during the 2018 trade tensions under President Trump's administration, Apple demonstrated resilience, suggesting its capability to manage similar situations in the future.

Entertainment and Media: Netflix (NFLX) and Spotify (SPOT)

The digital nature of companies like Netflix and Spotify renders them less susceptible to physical goods tariffs. Their global reach and subscription-based models provide a buffer against regional trade disruptions, making them attractive options during trade wars.

Industrial Automation: Rockwell Automation (ROK)

Rockwell Automation, a leader in industrial automation products, is positioned to benefit from the trend of "onshoring," where companies establish manufacturing plants in the U.S. This shift is often a response to trade uncertainties, and Rockwell's expertise in automation solutions aligns with the increasing demand for domestic manufacturing efficiency.

Logistics and Transportation: C.H. Robinson Worldwide (CHRW)

In the transportation sector, companies like C.H. Robinson Worldwide have been identified as resilient to economic and industry fluctuations. Their technological investments and market share gains position them well to deliver strong earnings growth, even amidst trade tensions.

Defensive Sectors: Consumer Staples, Healthcare, and Utilities

Evercore ISI also points to sectors traditionally considered defensive during economic uncertainties:

• Consumer Staples: Companies producing essential goods tend to maintain steady demand regardless of economic conditions.

• Healthcare: The healthcare sector often remains stable during economic downturns due to the consistent need for medical services and products.

• Utilities: Utility companies provide essential services, making them less vulnerable to economic cycles and trade disruptions.

Investing in these sectors can provide a buffer against the volatility induced by trade wars, offering investors more stable returns.

In conclusion, while trade wars introduce significant uncertainties into the market, Evercore ISI's analysis suggests that certain companies and sectors exhibit resilience. By focusing on technology firms with robust supply chains, digital media companies, industrial automation leaders, resilient logistics providers, and traditionally defensive sectors, investors can navigate the challenges posed by trade conflicts more effectively.