5 S&P 500 Stocks Unscathed by the Market Mayhem

The U.S. stock market nosedived on April 3, with the S&P 500 Index shedding about $2.4 trillion in market cap. President Donald Trump’s sweeping trade tariffs have stoked fears of an all-out trade war and intensified concerns about a global economic recession. The S&P 500 posted its biggest daily percentage decline since June 2020, tumbling nearly 5%. This has pushed the broad index again into correction territory.

While most of the S&P 500 stocks plunged, a few showed strength, defying the market rout. These include Lamb Weston Holdings, Inc. LW, Centene Corporation CNC, The Kroger Co. KR, First Solar, Inc. FSLR and American Water Works Company AWK. These stocks have a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Companies whose supply chains are heavily reliant on overseas manufacturing have suffered the most. Magnificent Seven stocks collectively lost more than $1 trillion in market cap amid the rout. The steep tariffs have raised concerns about higher prices, with the industrial, retail, consumer and automotive sectors feeling the impact.

Investors have flocked to defensive sectors like healthcare, consumer staples and utilities, which tend to be less sensitive to economic cycles and more resistant to market downturns. These generally act as a safe haven during political and economic turmoil. Stocks in these sectors generally provide higher returns in troubled times.

New Tariffs: A Big Headache

Trump unveiled a sweeping 10% baseline tariff on all U.S. imports, effective April 5, alongside significantly higher duties on key trading partners. The new tariffs include a 34% rate on China, 20% on the European Union, 46% on Vietnam, 32% on Taiwan and 26% on India, all set to take effect on April 9. In total, approximately 185 countries will be impacted, pushing U.S. tariff rates to their highest level in over a century. 

According to a JPMorgan economist, the tariffs represent the largest tax hike since 1968 and could push inflation up by 1.5% this year, based on the Federal Reserve’s preferred measure.

China retaliated by announcing a 34% tariff on imports of all U.S. products and other retaliatory moves. Meanwhile, the European Union is preparing retaliatory measures should negotiations fail.

The new administration also confirmed that the 25% tariff on global car and truck imports will proceed as planned on April 3, with additional duties on automotive parts set to take effect on May 3. The escalating trade tensions increase the risk of a full-scale trade war, which could slow down global economic growth.

5 Resilient Stocks

Lamb Weston is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and also provides a range of appetizers. Though its earnings are expected to decline 39.2% this fiscal year, the stock rallied 10% yesterday. Lamb Weston currently has a Value Score of B.

Centene is a well-diversified healthcare company that primarily provides a set of services to government-sponsored healthcare programs. Though its earnings are expected to decline 1.4% this year, the stock climbed about 6%. Centene currently has a Value Score of A.

The Kroger Co. has been undergoing a complete makeover, not only with respect to products but also in terms of the way consumers prefer shopping grocery. The company is focusing on plant-based products as well as eyeing technological expansion. The stock rose 5.2% and has an estimated earnings growth rate of 6% for the fiscal year (ending January 2026). KR has a Value Score of A.

First Solar is the world’s largest thin-film PV solar module manufacturer and the largest PV solar module manufacturer in the Western Hemisphere. The stock gained 5% yesterday and has an estimated earnings growth rate of 55.9% for this year. It has a Value Score of A.

American Water Works provides essential water services to more than 14 million customers in 24 states and employs approximately 6,700 people. It rose about 4% yesterday and has an estimated earnings growth rate of 5.9% for this year. The stock has a Momentum Score of A.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research