In the last week, weak markets sent speculative and overvalued stocks lower. Investors should consider five strong stocks that will perform relatively well.
In the robotaxi sector, Uber (UBER) shares are cycling in the $70 range. The firm, along with Lyft, is a long-term winner in the autonomous driving space. Uber will form new partnerships with automobile makers this year. Auto firms will post a substantial drop in unit sales as tariffs increase prices. Their investments in Uber software will help offset lower profits.
Government spending on defense will continue to grow. Despite the U.S. government seeking savings from military spending cuts, RTX (RTX) will thrive. Its Pratt & Whitney unit developed additive manufacturing. This cuts engine repair time, saving on costs.
Johnson Controls (JCI) is a stock to consider buying. The firm could post strong earnings and raise its guidance for 2025. The second-half outlook will strengthen as demand for its industrial products rises.
BYD (BYDDF) is the fourth stock to consider. Tesla (TSLA) is falling behind globally in sales, opening the market for BYD.
To hedge against the U.S. dollar’s fall, gold is a buy. Newmont (NEM) is a top rebound player in this sector. The firm shed non-core assets to improve its balance sheet. Its profit margin will rise faster than the competition as gold prices strengthen.
