Doubt the Market? 3 Stocks to Rideout Fear, Uncertainty and Doubt
While the market has rallied off its April lows, uncertainty continues to dominate investor sentiment. To avoid the volatility, consider these three stocks.
This story originally appeared on MarketBeat
Lately, the market has been delivering more plot twists to investors than a season of Severance. Solid tech earnings come in tandem with pulled guidance from public-facing companies like airlines and retailers. Economic data points to consumer and job market resilience, yet public sentiment continues to sour, and business surveys show inflation expectations continuing to creep higher.
And of course, erratic tariff policy looms over stocks like a storm cloud, threatening to puncture profit margins across a wide range of companies and sectors.
The S&P 500 has rallied more than 15% off its April 8 low following President Trump's reciprocal tariff pause, but uncertainty keeps the February all-time high at arm's length.
When the future becomes cloudy, the search for growth must be balanced with security. Value investing pioneer Benjamin Graham emphasized the 'margin of safety' when picking stocks, which means searching for assets and trading for less than their intrinsic value.
Searching for Safety Amidst Market Volatility
Investors tend to flock to less volatile assets like blue-chip stocks when the only certainty is more uncertainty. Blue chips often meet Graham's margin of safety definition through their large market caps, strong sales growth, market dominance, and a history of dividend increases.
Today, we'll look at three stocks built to ride out a storm of uncertainty.
These stocks were chosen based on fundamental factors like valuation, earnings potential, and dividend strength, along with technical metrics like beta that measure volatility in relation to the broader market. If you remain unconvinced by this recent stock rally, consider these three companies for further inspection.
Philip Morris International: Foundations for a Smoke-free Future
[content-module:Forecast|NYSE:PM]
Tobacco companies like Philip Morris International Inc. (NYSE: PM) are often popular stocks in uncertain periods thanks to their generous dividends and minimal volatility; PM fits both categories with a 3% yield and 0.52 beta. However, the firm is also ahead of the pack in future growth plans thanks to its priority on smokeless products.
Philip Morris manufactures the popular ZYN nicotine pouches, along with other smokeless products like IQOS that heat tobacco to create an aerosol instead of burning it to produce smoke.
Smokeless products are seen as a healthier alternative to cigarettes and vaporizers, and PM generated more than 40% of its Q1 2025 revenue from smokeless sources. ZYN was an especially hot seller, with shipments increasing by more than 50% in the quarter.
The company aims to sell 100% smoke-free products by 2030.
PM shares have jumped to new all-time highs in 2025, posting over 40% year-to-date gains. The valuation is loftier than that of competitors like Altria Group Inc. (NYSE: MO), but PM is better positioned for the smokeless transition ahead, which explains the stock's outperformance.
PM expects earnings growth of more than 10% over the next 12 months (while MO's decline), and the dividend payout rate is projected to drop to a manageable 68% in 2026, likely preceding an 18th consecutive annual payout increase.
Cardinal Health: A Bright Light in a Sunless Sector
[content-module:Forecast|NYSE:CAH]
The healthcare and medical sectors have been lagging behind the broader market for years, but Cardinal Health Inc. (NYSE: CAH) has been one of the few healthcare stocks that have shown strength. The stock punched through a new all-time high in early 2024 and continues to rally, with shares up more than 25% in 2025.
Cardinal Health has a strong dividend with a DPR under 35% and a 29-year track record of payment increases, but the earnings strength is what has investors taking notice.
The company reported fiscal Q3 2025 earnings earlier this month and posted a solid beat. EPS exceeded analyst estimates by 9% and showed year-over-year growth of over 13%.
Revenue slightly missed expectations, but the firm raised full-year 2025 EPS guidance from $7.90 to a $8.05 to $8.15 range. Following the report, analysts at Morgan Stanley and Robert Baird boosted price targets to $166 and $170, which would indicate an upside potential of 9% to 16% from current levels.
Alphabet Inc: Growth at a Value Price
[content-module:Forecast|NYSE:CAH]
Google-parent Alphabet Inc. (NASDAQ: GOOGL) might not be what investors first envision when thinking of blue chips, but it's not 2017 anymore, and Alphabet has an enticing valuation to match the growth potential of mega-cap tech.
The stock trades at less than 20 times earnings, the first time since 2012 that GOOGL shares have traded with a sub-20 P/E. With a beta of 1.01, its volatility is nearly even to the S&P 500, and the company even paid its first dividend last year, indicating future emphasis on rewarding shareholders along with R/D reinvestments.
Alphabet has been the subject of recent DOJ investigations, and comments by Apple's Eddy Cue about AI replacing traditional search have negatively impacted the stock this month.
However, the company posted strong top and bottom-line earnings on April 25, and the average price target amongst analysts covering the stock is $199, representing potential upside of over 15%.
Strong Earnings and Safe Dividends: An Elixir for Market Uncertainty
Investing in blue chips is a great way to limit downside risk in volatile markets, but it's not a replacement for due diligence or personal risk tolerance analysis. Always research specific companies before buying shares to ensure they fit your investment plan.
Use resources like MarketBeat's dividend calculator to aid your decision-making, and always consult an advisor before making any changes to your portfolio.
Before you make your next trade, you'll want to hear this.
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Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
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The Hill
7 minutes ago
- The Hill
Musk takes Trump agenda bill criticism to next level
Evening Report is The Hill's PM newsletter. Sign up here or subscribe using the box below: Thank you for signing up! Subscribe to more newsletters here ELON MUSK UNLOADED on President Trump's agenda bill Tuesday, with fiscal hawks in the Senate digging in and promising to sink the legislation. Musk, whose time as a special government employee came to an end last week, received a stylish Oval Office send-off from Trump for his work with the Department of Government Efficiency (DOGE) to slash spending. The tech titan bit his tongue during the presidential salute last week when the issue of spending in the GOP's agenda bill came up. But he cut loose on Tuesday, and at a critical time for Trump's 'big, beautiful bill,' which faces a tricky path through the Senate amid mounting concerns about spending and the deficit. 'I'm sorry but I just can't stand it anymore,' Musk posted on his social media platform X. 'This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it.' Musk later threatened to oust lawmakers who fail to codify cuts made by DOGE, among other issues. 'In November next year, we fire all politicians who betrayed the American people,' he posted. Musk's remarks came as White House press secretary Karoline Leavitt was in the middle of a press briefing. 'The president already knows where Elon Musk stood on this bill,' Leavitt said. 'It doesn't change the president's opinion.' Musk had previously expressed frustration with House Republicans for the trillions in debt the bill is forecast to create. Those concerns are shared by several Republicans in the Senate, led by Sen. Rand Paul (R-Ky.), who says he will not vote for the bill because it raises the debt ceiling by $4 trillion. Senate Majority Leader John Thune (R-Ky.) can only afford to lose three Republicans for the bill to pass, and Paul says there are at least four on his side. 'I want to see the tax cuts made permanent, but I also want to see the $5 trillion in new debt removed from the bill,' Paul posted this morning, one of several social media posts and media appearances he made to blast the bill. Paul and Sen. Mike Lee (R-Utah) appeared energized by Musk speaking out, reposting his comments with their own words of opposition. 'These numbers are nothing short of stunning,' Lee said. 'Congress has hollowed out America's middle class through reckless deficit spending and the inflation it causes.' The fiscal hawks have pointed to wobbles in the bond market, where yields are on the rise amid concerns about U.S. debt and Trump's trade war. 'It's a big deal. It is a real problem,' JPMorgan Chase CEO Jamie Dimon said on 'Mornings with Maria' on Fox Business Network. 'The bond markets are going to have a tough time.' Trump fired back at Paul in a post on Truth Social. 'Rand Paul has very little understanding of the BBB, especially the tremendous growth that is coming,' Trump said, referring to his agenda bill. 'He loves voting 'no' on everything, he thinks it's good politics, but it's not. The BBB is a big winner!!!' For his part, Speaker Mike Johnson (R-La.) said Musk is 'terribly wrong,' adding he spoke to the billionaire about it for 20 minutes on Monday. 'For him to come out and pan the whole bill is to me just very disappointing, very surprising in light of the conversation I had with him yesterday,' Johnson said. The White House sent its recissions package to Capitol Hill on Tuesday. It seeks to claw back just under $10 billion, much of it from funding for NPR, PBS and the U.S. Agency for International Development. Trump has been actively involved in discussions with GOP senators, already holding talks with Thune and Sens. Josh Hawley (R-Mo.) and Ron Johnson (R-Wis.) this week. Hawley is concerned about potential cuts to Medicaid, while Johnson is among the fiscal hawks opposing the bill over spending and debt. Hawley says Trump told him there would be no 'Medicaid benefit cuts,' as the Trump administration makes the case that cuts to the program will only affect those in the country illegally or people who are capable of working but choose not to. CRITICAL WEEK AHEAD It's a big week for Senate Republicans, who have a self-imposed deadline of July 4 to pass Trump's agenda bill. Thune said he won't overrule the Senate parliamentarian, who will decide soon whether the bill adheres to rules that would allow Republicans to bypass a Democratic filibuster. Some Senate Republicans argue that decision should be up to Senate Budget Committee Chair Lindsey Graham (R-S.C.). 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And Newark, N.J., Mayor Ras Baraka (D) on Tuesday sued interim U.S. Attorney for the District of New Jersey Alina Habba over his arrest last month outside a U.S. Immigration and Customs Enforcement (ICE) facility. The lawsuit alleges false arrest, malicious prosecution and defamation, and accuses Habba of acting as a 'political operative, outside of any function intimately related to the judicial process.' Baraka and three Democratic members of the New Jersey congressional delegation — Bonnie Watson Coleman, Rob Menendez and LaMonica McIver — were visiting the Delaney Hall ICE detention center in Newark last month when a scuffle broke out between them and several ICE officers. Baraka was charged with misdemeanor trespassing, although Habba's office later dismissed the charge and instead charged McIver with assaulting law enforcement. ELSEWHERE… The Trump administration is also keying in on immigration, emphasizing it after the anti-semitic attack in Boulder, Colo., over the weekend. 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Wall Street Journal
7 minutes ago
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The Knicks Just Fired Their Best Coach in Decades. Are They Back to Being the Knicks?
Tom Thibodeau has been sacked as head coach of the New York Knicks following a season in which he led this comically forlorn franchise to the edge of the NBA Finals for the first time in a quarter-century. I used to feel happiness for whomever got fired as a Knicks coach—finally, they are free from this cave! Fly away! This time, it's hard not to feel bad for Thibs, a grinding lifer who transformed one of the most thankless jobs in sports. You can look at the team's decision a couple of ways. I'll do the optimistic rendering, naturally followed by the irritated, pessimistic one. This Shows the Knicks are Serious. An optimist may choose to see Thibodeau's ouster as a signal that New York's front office believes the team is close to a championship, and only a few key changes are needed to get them over the hump. Under this theory, relieving Thibodeau—a former head coach in Chicago and Minnesota who was hired by the Knicks for the 2020-21 campaign—is a painful but necessary move. It's painful because Thibodeau was undeniably successful: He built the Knicks into an overachieving unit that finished in third place in the Eastern Conference, and knocked off both Detroit and defending champion Boston in the playoffs. He wrung the best out of imperfect lineups and gave the freedom to Jalen Brunson to become a generational New York superstar. He carved Josh Hart and OG Anunoby into warriors. Thibodeau also coached Karl-Anthony Towns for 18 playoff games without opening a bottle of bourbon on the sideline. Thibodeau isn't for everyone. He's a no-nonsense obsessive who always looks like he can't find his rental car. He isn't going to get a job hosting the 'Today' show, although I would totally watch that. Instead he gave the Knicks an identity to match their city: tough, resilient, hard to kill. His team, Brunson especially, is beloved. Thibs's resistance to change could be maddening, but Madison Square Garden rocked in a way it hadn't since the Ewing/Starks days. As for why his firing is necessary…well, the Knicks must feel they are ready to go up a level, and didn't think Thibodeau was the guy to get them to take the leap. Maybe they've been ready to do it for a while, and then this playoff run made the optics weird. Much has been said about Thibodeau's stubbornness about using rookies and bench players, which led to him milking a ton of minutes from his starters. This led to injury worries, plus some frustrating moments in the playoffs, especially when Thibodeau needed to dust off his bench versus the frantic Indiana Pacers. Moving on from Thibodeau signals a change in approach, which presumably means utilizing the bench more and keeping the team fresher into May and June. But still! They just won 51 regular-season games and went deeper in the playoffs than any Knicks team in eons! They reached the postseason in four of Thibodeau's five seasons! Do you realize how sad this team was not long ago? Do you remember the soul-crushed atmosphere in the Garden, the easy punchlines about ownership and ineptitude? Do you think Kylie Jenner was going out on a date to watch THAT? Absolutely not. Under Thibs, New York found hope again. Do you see how old those Clyde Frazier and Earl Monroe championship banners are in the rafters? They're old enough to still be reading a sports column in a newspaper. Which leads to this natural but nagging worry: This Shows the Knicks are Still the Knicks. This is the fear: that maybe the Knicks maxed it out this season, shocked a Boston team that didn't take them seriously, and might not be as close to a title as they appear. The Celtics aren't looking like a huge threat as long as injured Jayson Tatum is out, but Indiana's clearly arrived, the Cavs should be solid, Detroit's rising, and Orlando might be ready to get serious. (I'm choosing to completely ignore the Western Conference and the loaded Oklahoma City Thunder, which might fire Indiana into the sun when the Finals begin on Thursday.) Maybe the Knicks are being irrational here, dismissing a coach who knew how to win basketball games, and will now do what irrational teams do, which is to find a shiny new replacement who will struggle to match the prior coach's success. The Knicks have historically craved big names, and you can expect some to surface soon. Whoever's hired will say the right things, and hit the right notes, but it doesn't mean anything until next year, when you find out if they can find a way to stop Tyrese Haliburton and Pascal Siakam. Here's the panic: Maybe this spring was as good as it got. Maybe the Knicks are heading backward, moving fast and breaking up a good thing. There will be intense pressure on who comes next—not just as coach, but to supplement Brunson, Towns and the overworked starters. There will be agony if it doesn't work. New York City, a hard-to-please town, got used to losing a lot of basketball games. Tom Thibodeau taught it how to win again. Write to Jason Gay at
Yahoo
7 minutes ago
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Nvidia (NVDA) Extends $1 Trillion Rally as AI Optimism Grows
Nvidia (NVDA, Financials) surged over 45% from its April low, adding $1 trillion in value and closing in on Microsoft's (MSFT, Financials) spot as the world's most valuable company, according to Bloomberg. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Despite the sharp rally, Nvidia trades at about 29 times projected earnings over the next 12 months below its 10-year average of 34 times. The stock's price-to-earnings-to-growth ratio is under 0.9, the lowest among major tech peers, signaling potential undervaluation. Bloomberg data shows analysts remain bullish, with 69 of 78 rating the stock a buy and only one issuing a sell. The average price target implies a further 24% upside. Investors have shaken off early-year concerns tied to U.S.-China tensions and semiconductor sales restrictions. Bloomberg reported Nvidia lost $2.5 billion in Q1 sales from a China chip ban and expects an $8 billion hit in Q2, but demand elsewhere appears strong. U.S. tech giants including Microsoft, Amazon (AMZN, Financials), Alphabet (GOOG, Financials) and Meta Meta Platforms (META, Financials) are projected to spend $330 billion on AI infrastructure in 2026, up 6% from 2025, helping sustain Nvidia's growth momentum. Still, trade exposure lingers. China contributed 13% of Nvidia's revenue in Q1. With President Trump's administration threatening broader tech restrictions, Nvidia could face further headwinds. CEO Jensen Huang said no new China-focused products are planned for now, but the company is monitoring the policy environment. Nvidia's relatively low institutional ownership 74% of long-only funds, compared with 91% for Microsoft leaves room for additional buying pressure. Analysts like Samuel Rines of WisdomTree argue Nvidia's earnings multiple could rise into the high 30s or low 40s as AI capex accelerates. Investors will continue to watch for signals from Washington on trade, as well as ongoing data center demand trends. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
