Panic is in the air and that makes it a fun time for our cash-heavy (and well-hedged) Members to do a little shopping. Here's a few of our best trade ideas for beating the tariff turmoil:
Screening Criteria
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Domestic Revenue: >80% from U.S. operations
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Low Import Reliance: Minimal exposure to China/EU supply chains
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Essential Goods/Services: Non-cyclical demand
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Financial Strength: Debt/Equity <0.5, FCF Margin >10%
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Oversold: RSI <30 (14-day)
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Valuation: Forward P/E <15x, P/B <3x
Top 10 Oversold, Tariff-Resilient Stocks
1. NextEra Energy (NEE)
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Sector: Utilities
- Current Price: $72.27
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Key Stats:
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RSI: 48
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Domestic Revenue: 98%
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Debt/Equity: 1.2 (sector avg: 1.5)
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FCF Yield: 5.8%
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Why Resilient:
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Minimal import reliance (energy infrastructure)
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Regulated pricing power in Florida/Texas
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Dividend Aristocrat with 4.2% yield
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- Business: Large-scale electric utility with regulated operations primarily in Florida (Florida Power & Light) and a major competitive wholesale generation business focused on renewables across North America (NextEra Energy Resources).
- Tariff Exposure: Very low direct exposure. The core utility business (FPL) operates entirely domestically, generating and distributing power within Florida. The renewables arm (NEER) develops projects primarily in North America; while it sources components like solar panels and batteries globally (potentially facing tariffs from SE Asia or China), the Inflation Reduction Act (IRA) provides significant tax credits and incentives for projects utilizing domestic content or located in the US, partially mitigating tariff impacts on US projects. Overall import costs are a fraction of the business compared to domestic infrastructure and fuel (like natural gas).
- Resilience Factors: Regulated utility operations provide highly stable, predictable earnings and cash flow. Electricity is an essential service with inelastic demand. Strong position in secular growth trend of renewable energy, heavily supported by US policy (IRA). High (>95%) domestic revenue base. Strong balance sheet and credit rating within the utility sector.
