3 Stocks to Buy Amid Market Correction Triggered by Trump’s Trade War

• Savvy investors are seeking out resilient companies capable of weathering the storm amid global trade tensions.
• Three such companies—Monster Beverage, Mondelez International, and Bristol-Myers Squibb—stand out as solid investment choices during the ongoing market correction.
• Each of these corporations boasts a diverse portfolio of well-known brands and products, positioning them as smart buys.
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President Donald Trump’s aggressive tariff policies are reshaping global trade, with recent tariffs on Mexico, Canada, the European Union, and China already triggering retaliatory measures. As markets digest these developments, investors need strategies to navigate the uncertainty.

Here are three stocks positioned to weather—and potentially thrive—during escalating trade tensions.

1. Monster Beverage

• Year-To-Date Performance: +3.4%
• Market Cap: $52.8 Billion

Monster Beverage (NASDAQ:) dominates the energy drink market with its flagship Monster Energy brand, among others. The company also produces non-carbonated ready-to-drink beverages including teas, juices, and coffee drinks.Source: Investing.com

MNST stock has shown resilience with a 9.7% gain over the last month despite broader market volatility.

With a loyal consumer base and innovative marketing strategies, Monster is well-positioned to continue its growth trajectory, making it an attractive investment option. Deutsche Bank recently raised their price target to $61.00 while maintaining a ’buy’ rating. Source: InvestingPro

As the leading marketer and distributor of energy drinks in the United States and a robust presence globally, Monster stands out for its ability to grow despite external challenges.

The company’s tariff exposure is considered manageable, with aluminum representing only one-third of can costs.

2. Mondelez International

• Year-To-Date Performance: +8.3%
• Market Cap: $83.7 Billion

Mondelez (NASDAQ:) International is a global snack powerhouse, with a portfolio that includes some of the world’s most beloved and iconic brands such as Oreo, Cadbury, Milka, and Ritz. The company operates in approximately 160 countries, giving it tremendous geographic diversification.

MDLZ stock has shown strong relative strength amid the ongoing market correction, notching a gain of about 6% during the past month.

Mondelez’s strength lies in its localized production model. The company manufactures most products within the regions where they’re sold, significantly reducing cross-border shipping and tariff exposure. Additionally, the consistent demand for snack products, regardless of economic conditions, underscores Mondelez’s defensive qualities.

With a diverse product line that caters to global tastes and preferences, Mondelez is well-equipped to cope with the challenges of a trade war. Fair Value estimates point to a potential upside of 8% from current levels, while analysts maintain a “Strong Buy” consensus. Source: InvestingPro

Furthermore, the company offers a 3% dividend yield with a reasonable payout ratio of 50.9%, making it a solid choice for investors looking for stability.

3. Bristol-Myers Squibb

• Year-To-Date Performance: +6.6%
• Market Cap: $121.8 Billion

Bristol-Myers Squibb (NYSE:), a global biopharmaceutical company, rounds out the trio with its array of prescription pharmaceuticals and consumer products. With a focus on therapeutic areas such as oncology, cardiovascular, and immunology, Bristol-Myers has a robust pipeline of medications addressing critical health needs.

BMY shares are showing strong positive momentum with a 7.7% stock return over the past month.

Pharmaceutical companies offer exceptional insulation from trade tensions for several reasons. First, life-saving medications face fewer retaliatory tariffs due to humanitarian concerns. Second, high margins allow absorption of tariff impacts without significant earnings deterioration. Finally, intellectual property protection creates pricing power regardless of trade conditions.

With a market cap of $121.8 billion, a 4.1% dividend yield, and a “GOOD” Financial Health score, BMY offers an attractive combination of value, income, and defensive characteristics. Source: InvestingPro

The company’s strong cash flow supports both its dividend and continued research investment, creating a virtuous cycle for long-term investors.

Conclusion

In conclusion, Monster Beverage, Mondelez International, and Bristol-Myers Squibb each exhibit characteristics that make them attractive investment options during a global trade war.

Their strong brand portfolios, defensive business models, and strategic approaches to navigating economic challenges position them well to deliver stable returns in uncertain times brought on by tariffs.

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Disclosure: At the time of writing, I am short on the S&P 500 and via the ProShares Short S&P 500 ETF (SH) and ProShares Short QQQ ETF (PSQ).

I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.

The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.

Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.