Markets have become excessively volatile.
All thanks to tariffs lodged against China, which responded with 84% tariffs against the U.S. Now, even the European Union – which faces tariffs of up to 20% — just approved its first set of retaliatory tariffs.
“The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial,” the European Commission said, as quoted by CNBC.
Still, even with that chaos, analysts still see plenty of opportunity in stocks, such as:
Tesla (TSLA)
While there’s been plenty of negativity here, it’s overdone.
Analysts at Benchmark also say investors should buy the dip, noting, ““We believe the recent stock pullback and sales declines, while significant, are overblown considering the near-term issues impacting the company and the scope of opportunities around the corner. We are adding TSLA to Benchmark Best Ideas with a revised PT of $350 ($475 prior).”
Also, the stock appears to be holding strong support at $230 and is just starting to pivot higher. Last trading at $232.15, we’d like to see an initial retest of $275.
Apple (AAPL)
Jefferies’ analysts just upgraded Apple to a hold rating, noting:
“Our base case remains that AAPL would be exempted from U.S. tariffs, given its commitment to invest US$500bn in the U.S. over the next four years, and our belief that it would make additional manufacturing investment commitment in the U.S. (to make iPhone, for example). However, a rising risk of global recession could further impact already-weak iPhone demand.”
The tech giant is also severely oversold and starting to rebound. Last trading at $178.31, we’d like to see AAPL eventually refill its bearish gap at around $205 initially.
Sirius XM (SIRI)
Analysts at Seaport just upgraded SIRI to a buy rating, noting that “SIRI should be a recession-resistant port in the tariff storm — with an all-U.S., recurring subscription revenue, sticky-subscriber business model, and with ~13% growth in [free cash flow] expected in each of this year and next.”
SIRI now sits at lows last seen in 2012. However, it is starting to see interest from investors.