Tariffs have been the on-again, off-again story of Donald Trump’s second term. Although recent news of a tariff deal with China was well-received by the stock market, you may still be on guard for another round of escalating trade tensions. After all, the Trump administration has changed its tariff stance several times.
Each policy change sparks a new round of volatility for stocks with high tariff exposure. If you’re ready to exit the roller coaster ride, consider investing in businesses that are less reliant on international trade. Below are six ideas worthy of further research.
Tariffs And The Stock Market
Tariffs can have a range of impacts on the stock market. A primary concern is how tariffs affect business profits. Higher levies raise input costs for companies that rely on foreign suppliers. When costs go up, businesses can either absorb the increase or raise prices. Absorbing higher costs lowers margins, and raising prices could slow sales growth.
Meanwhile, higher tariffs may encourage consumers and businesses to spend less. A broad and unexpected spending slowdown could cause many companies to miss their sales and earnings targets. Stock prices would decline in response, as investors reassess valuations under a more pessimistic economic outlook.
Methodology Used For These Stock Picks
Interviews with investing and economic experts revealed these recommendations on choosing the best stocks for tariffs:
- Utilities, health care services, regional banks and REITs are less vulnerable to tariff volatility, according to Abigail Wright, senior business advisor at ChamberofCommerce.org. These industries often target domestic consumption and rely less on global supply chains.
- Firms with vertically integrated supply chains and strong domestic customer bases may be good options, according to Dr. Shawn DuBravac, CEO and president of consulting and research firm Avrio Institute.
Considering these recommendations, this list of best stocks to buy now was compiled using three parameters:
- Primarily domestic business operations in utilities, financials, health care or real estate
- Buy or strong buy ratings from at least four analysts
- Double-digit price target upside
From nearly 30 stocks meeting those requirements, six were selected to create a list with representation from different sectors and company sizes.
6 Top Stocks To Buy To Avoid Tariff Uncertainty
The table below introduces six top stocks to buy now, due to their limited tariff exposure. They are ordered from smallest to largest market capitalization. A brief review of each business follows.
1. LifeMD, Inc. (LFMD)
- Stock price: $8.60
- Annual revenue: $234.01 million
- Annual EPS: -$0.33
- P/E ratio: NA
- Dividend yield: NA
- Price target upside: 29.88%
LifeMD Business Overview
LifeMD operates a telehealth platform connecting patients to primary and specialty health care professionals in the U.S. Primary treatment areas include sexual health, weight management, diabetes management, heart health, insomnia, mental wellness, hormone therapy and dermatology. In a May 2025 investor presentation, the company valued its addressable market at $170 billion.
Why LFMD Is A Top Choice
LifeMD has an early mover advantage in integrated telehealth services. Backed by proprietary technology, a strong physician network, plus pharmacy and diagnostics partnerships, LifeMD is rapidly capitalizing on the demand for accessible, cost-efficient health care. The company has scaled effectively, growing revenues from $13 million in 2019 to more than $200 million in 2024—while producing telehealth gross margins of over 70%.
LifeMD’s investment in document management company WorkSimpli is another advantage. WorkSimpli delivers high-margin recurring revenue, which can fund telehealth growth or support a divestiture at attractive terms.
2. First Business Bank (FBIZ)
- Stock price: $47.88
- Annual revenue: $148.87 million
- Annual EPS: $5.48
- P/E ratio: 8.8
- Dividend yield: 2.42%
- Price target upside: 19.57%
First Business Bank Business Overview
First Business Bank is a regional bank serving small to mid-sized businesses and their officers in Wisconsin, Kansas and Missouri. Services include deposit accounts, commercial lending, equipment financing, company retirement services and wealth management for individuals.
Why FBIZ Is A Top Choice
First Business Bank outperforms peers in overall client satisfaction and net promoter score. The company is also regularly recognized for its positive workplace culture. The bank has a small footprint, which is an asset for delivering outstanding client and employee experiences.
FBIZ regularly produces around 10% growth in its debt portfolio, deposit balances and revenue. The company’s five-year shareholder return is 250%, more than four times the median of its peer group, 62%.
Business momentum in the last two quarters signals the opportunity for more growth ahead. After reporting record earnings in the fourth quarter of 2024, FBIZ delivered 17.7% total deposit growth, 9.2% loan growth and 12.7% net interest income growth in the first quarter.
3. U.S. Physical Therapy (USPH)
- Stock price: $76.73
- Annual revenue: $692.33 million
- Annual EPS: $2.17
- P/E ratio: 35.2
- Dividend yield: 2.35%
- Price target upside: 42.06%
U.S. Physical Therapy Business Overview
U.S. Physical Therapy operates outpatient physical and occupational therapy clinics in 44 states. USPH is already one of the largest U.S. physical therapy clinic operators, but aims to grow through organic initiatives and acquisitions.
Why USPH Is A Top Choice
USPH’s growth strategy aligns well with business conditions. The physical therapy clinic space is fragmented with no dominant market leader. An aging U.S. population and payor pressure to reduce care costs fuel increasing demand for outpatient treatments, particularly treatments that can reduce readmission rates.
USPH structures clinic acquisitions as partnerships to ensure business continuity. Local founders retain strong ownership positions and continue operating the clinics. The company has completed more than 50 acquisitions since 2005, with as many as 52 clinics involved in each transaction.
In the first quarter 2025, USPH reported 13.9% growth in total patient visits, 16.4% growth in physical therapy revenues and 23.7% growth in net income, compared to the prior-year quarter.
4. Independence Realty Trust (IRT)
- Stock price: $18.95
- Annual revenue: $641.33 million
- Annual EPS: $0.13
- P/E ratio: 144.7
- Dividend yield: 3.38%
- Price target upside: 19.79%
Independence Realty Trust Corporation Business Overview
Independence Realty Trust is a real estate investment trust (REIT) that owns apartment buildings in the U.S. The company seeks assets in “amenity-rich” growth markets like Atlanta, Memphis, Raleigh and Louisville. Desirable amenities include strong job markets, good schools and quality retailers.
Why IRT Is A Top Choice
IRT’s advantage is its disciplined investment approach. The company invests in markets with strong long-term rental demand and buildings with untapped income opportunities. Demand considerations include population growth relative to supply trends and conditions that support renting over buying.
A frequently quoted metric for REITs is net operating income or NOI. REITs achieve same-store NOI growth by raising rents, improving occupancy and reducing expenses. IRT specializes in strategic renovations that support higher rents. Since 2019, the company has achieved same-store NOI growth of 45%, compared to 20% for its peer group.
Renovations alongside favorable demand trends increase the value and productivity of IRT’s portfolio over time.
In the first quarter 2025, IRT completed 275 renovations with an ROI of 16.2% and increased same-store NOI by 2.7%.
5. SouthState Corporation (SSB)
- Stock price: $90.69
- Annual revenue: $1.83 billion
- Annual EPS: $6.12
- P/E ratio: 14.9
- Dividend yield: 2.38%
- Price target upside: 29.75%
SouthState Corporation Business Overview
SouthState is a regional bank headquartered in Florida. The bank provides consumer and commercial financial services to clients primarily located in Florida, Texas, the Carolinas, Georgia, Colorado, Alabama and Virginia.
Why SSB Is A Top Choice
On January 1, 2025, SouthState completed a merger with Independent Bank Group (IBTX). The merger extended the bank’s footprint into Texas and Colorado and increased assets to $65 billion from $46 billion at December 31, 2024.
The company also restructured its securities portfolio in the first quarter. In the first quarter earnings release, CEO John C. Corbett said, “SouthState is now positioned with industry-leading profitability and strong liquidity, capital and asset quality for the uncertainties that lie ahead.
The bank’s net interest margin increased to 3.85% from 3.41% in the prior-year quarter. The strength contributed to adjusted, diluted EPS of $2.15, which soundly beat the consensus expectation of $1.64. Management expects the improvement to hold for the year, guiding to a 3.80% to 3.90% net interest margin for all of 2025.
6. Vistra (VST)
- Stock price: $151.90
- Annual revenue: $18.10 billion
- Annual EPS: $6.38
- P/E ratio: 23.7
- Dividend yield: 0.59%
- Price target upside: 10.60%
Vistra Business Overview
Vistra generates power and provides electricity to about five million residential, industrial and commercial customers. The company operates a fleet of natural gas, nuclear, coal, solar and battery energy storage assets. Notably, Vistra is increasing its clean energy capacity and owns the second-largest nuclear fleet in the U.S.
Why VST Is A Top Choice
Immediate and medium-term conditions look promising for Vistra. In the short term, Vistra has extensive hedging in place to protect against price fluctuations in 2025 and 2026. The company also has no exposure to tariffs, according to RiskRewardReturn.com CEO Sankar Sharma.
Longer-term, Vistra’s renewable energy transition should create an enduring competitive advantage. The company’s nuclear expertise may become particularly important, given a recent Reuters report that the Trump administration wants to expedite nuclear power plant construction in the U.S.
In the first quarter 2025, Vistra recorded a net loss of $268 million but generated $1.24 billion in adjusted EBITDA from ongoing operations. The company also reaffirmed its 2025 ongoing operations adjusted EBITDA guidance of $5.5 billion to $6.1 billion.
Bottom Line
Tariffs do not directly impact U.S. companies with domestic suppliers and customers. As long as changing tariff policy doesn’t bring down the economy as a whole, these domestic operations should be less reactive to tariffs than global businesses. They could provide a nice shelter as the tariff saga plays out.
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