In a climate of escalating trade tensions and market volatility, investors are seeking refuge in stocks with robust fundamentals. Analysts at Piper Sandler have identified several companies poised to weather the storm, offering stability and potential growth amid uncertainty. These firms exhibit strong performance metrics and positive correlations with U.S. corporate bond risk spreads, positioning them as strategic investments.

Navigate Market Volatility with Insightful Investment Choices

Market Dynamics and Investor Sentiment

The financial markets have experienced significant turbulence recently, driven by heightened trade tensions. President Donald Trump's announcement of tariffs on goods from Canada, Mexico, and China has sent shockwaves through the market. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closed lower last week, marking their worst performance since September. Investors are grappling with uncertainty about the extent of these trade actions and how they will impact the economy.Analysts have noted that unlike previous market downturns, this situation is more unpredictable. In the past, factors like rising consumer prices or interest rates provided clearer paths to market recovery. However, the current scenario lacks such predictability, making it challenging for investors to anticipate outcomes. This unpredictability has drawn comparisons to the fourth-quarter selloff of 2018, when market dissatisfaction with Federal Reserve policies led to volatility until a policy shift occurred.

Kroger: A Beacon of Stability in Grocery Retail

Amid the market turmoil, Kroger has emerged as a standout performer. Shares of the food retailer surged nearly 5% on Friday, reaching a new 52-week high and delivering a weekly gain of about 3%. According to Piper Sandler's internal ranking system, Kroger received top scores for macroeconomic selectivity and corporate bond risk spread. The company's recent forecast for annual same-store sales exceeded analysts' expectations, driving investor confidence.Kroger's resilience is evident in its performance over the past six months, during which the stock has surged almost 28%, far outpacing the broader market. More than half of sell-side analysts maintain a bullish stance on Kroger, with 13 of 25 recommending a buy and 12 advising a neutral position. This favorable outlook underscores Kroger's potential as a safe haven for investors seeking stability in uncertain times.

Dollar General: Thriving Amidst Economic Challenges

Dollar General, the discount retailer headquartered outside Nashville, has also demonstrated remarkable performance. Shares advanced more than 7% on Friday, capping a weekly gain of over 10%. Despite facing broader economic challenges, Dollar General has risen almost 13% in the past month. Using Piper Sandler's scoring system, the discounter achieved a macro select score of 1 and a corporate bond risk spread score of 2.Morgan Stanley echoed Piper Sandler's assessment, highlighting Dollar General as one of the stocks likely to be insulated from the impact of tariffs. While the company's shares have declined by more than 48% over the past year, its recent gains indicate a resilient business model capable of navigating economic headwinds. For investors looking for value in the retail sector, Dollar General presents a compelling opportunity.

Hess Corporation: Energy Sector Resilience

In the energy sector, Hess Corporation has shown promising performance despite market volatility. Shares climbed almost 3% on Friday, contributing to an 11% increase in 2025 compared to a 2% decline in the S&P 500. Hess's inclusion on Piper Sandler's list reflects its strong macroeconomic select score and corporate bond risk spread score of 2.The company's ability to thrive in challenging conditions highlights its strategic positioning within the oil and gas industry. As global trade dynamics continue to evolve, Hess's resilience offers investors a reliable option in the energy sector. With a solid track record and favorable market positioning, Hess represents a valuable addition to any diversified investment portfolio.