Tariff-Induced Bear Market? Not So Fast, Say These 5 Stocks.

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Not every market dip is an automatic buying opportunity. Investors, especially those newer to this arena, might not realize that yet. 

The stock market often does whatever it needs to so that the largest number of investors end up disappointed. Sort of like casinos do. However, that might have a lot to do with the process many investors are using, particularly when “number go up” is the process. That’s not an investing system, that’s speculation. 

The current market is challenging, there’s no doubt. But hidden in plain sight, beneath the chaos of the Magnificent 7 and other big tech stocks, is a surprisingly healthy number of U.S. stocks whose charts suggest they could buck the trend as we move to the middle part of 2025. Using data from Barchart and the Reward Opportunity And Risk (ROAR) methodology I use to convert the charts I read into a bottom-line grade, I analyzed 1,000 stocks on Thursday, April 3, the day the S&P 500 Index ($SPX) fell 5%. I expected to find perhaps 10-20 stocks (1%-2% of the total) whose chart patterns at least indicated some hope for the future. Instead, I found well over 100 of them. 

Using the grading system for stocks I have written about here in recent weeks, here are five stocks from that list, with charts and ROAR Scores in tow. For more on the ROAR Score, see my explanation of it from the report I debuted here last month. 

5 Stocks That Are More Likely to Rise Than Fall

Now, on to five stocks that can potentially restore some hope for investors willing to look beyond the headlines and most popular stocks. First, the names, tickers and ROAR Scores as of mid-day. Each stock recently had a ROAR Score between 70 and 80. That implies about a 75% chance that its next 10% move is up, not down. 

Very few stocks score above 80% or below 20%, since realistically, and as we’ve seen in living color already this month, stocks can go down fast at any time. So the sooner we get “definitely” and “no way” out of our investor vocabulary, the better!

Stock #1: American Tower 

American Tower (AMT) is an established leader in the real estate investment trust (REIT) sector, but it doesn’t build office buildings, homes or shopping centers. Its land is used to host cell towers. So it is not much of a stretch to imagine why stocks in that REIT subsector have a fighting chance in a raucous market.

www.barchart.com

Stock #2: Keurig Dr. Pepper 

While the proverbial joke on Wall Street in times like this might be “I need a drink,” Keurig Dr. Pepper’s (KDP) resiliency indicates that for many, the beverage of choice might be a Dr. Pepper, or perhaps some home-made coffee. 

www.barchart.com

Stock #3: The Cigna Group 

Insurance stocks like Cigna (CI) also make sense in a market looking for places to hide. 

www.barchart.com

Stock #4: Conagra Brands (CAG)

Let’s play a quick game of “Jeopardy!” The answer is: Reddi-Wip, Hunt’s, Healthy Choice, and Slim Jim. The question: What are four brands consumers won’t do without, even when times are tough? Those are four of the many brands that make up Conagra (CAG), thus giving the stock defensive characteristics.

www.barchart.com

Stock #5: American Water Works

And, while soda, coffee, ketchup and jerky fit some folks’ definition of “necessities,” the business of clean water says “hold my beer.” American Water Works (AWK) is a water and wastewater management company operating throughout the United States. Given the combination of stock volatility and potential “flight to quality” in bonds and stocks, including a utility stock in this 5-pack makes sense.

www.barchart.com

Time for Investors to Cast a Wider Net 

While this doesn’t guarantee anything, especially in this new era, at least it can serve as an indicator that while the stock market indexes are wilting, the “stock market” more broadly is not entirely full of potholes. 


On the date of publication, Rob Isbitts did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.