US financial markets remain in disarray heading into Trump’s “Liberation Day”.
On April 2nd, the Republican leader is set to implement reciprocal tariffs on several countries, which are broadly expected to shake up stocks across the board.
However, there still are names that are relatively better positioned to weather Trump’s new trade policies and a potential trade war that may follow, according to Morgan Stanley.
These include McDonald’s, Yeti, and Martin Marietta.
McDonald’s Corp (NYSE: MCD)
Morgan Stanley sees McDonald’s stock as a place to hide from tariff-related headwinds in 2025.
The investment firm remains positive on MCD amidst a challenging macroeconomic backdrop as it’s one of the most internationally diverse fast-food restaurant chains in the world.
McDonald’s global revenue and local suppliers could help it weather the new tariffs environment relatively better than peers this year, according to Morgan Stanley analysts.
Plus, MCD shares currently pay a healthy dividend yield of 2.26%, which makes them all the more attractive to own, especially if you’re betting on an economic slowdown ahead.
Wall Street currently has a consensus “overweight” rating on McDonald’s stock as well.
Yeti Holdings Inc (NYSE: YETI)
Yeti is partially dependent on Mexico for manufacturing, which exposes it to Trump’s tariffs.
Still, the outdoor products maker is relatively better positioned to weather the related headwinds as it has the power to pass on the higher costs to its customers, argued Morgan Stanley in its report.
On top of pricing power, the firm’s analysts remain bullish on Yeti stock also because it’s trading at an attractive valuation at the time of writing.
YETI has lost some 25% since its 52-week high in December.
While shares of the Austin headquartered firm do not currently pay a dividend, the rest of the Wall Street is bullish on them ahead of a potential recession.
The average price target on Yeti stock sits at about $44, which indicates a potential upside of 30% from current levels.
Martin Marietta Materials Inc (NYSE: MLM)
Morgan Stanley sees this industrial stock as fairly positioned to navigate Trump tariffs for the same reason as Yeti – it has pricing power.
The ability to pass higher costs to customers, its analysts argued, was the “easiest and cheapest” way to weather new tariffs.
Much like YETI, Martin Marietta stock has also lost well over 20% since November, which makes it attractive in terms of valuation as well.
Plus, the industrial giant is also a dividend stock that currently yields 0.65%.
Wall Street rates shares of Martin Marietta Materials as “overweight”.
Analysts currently see upside in them to $625 on average, which indicates potential for a more than 25% upside from current levels.
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