3 Relatively Safe Stocks to Buy Right Now

In the current market climate, where tariffs and trade wars are causing significant volatility, investors are looking for safe havens. While no stock is completely immune to market fluctuations, some companies are better positioned to weather the storm. Here are three relatively safe stocks to consider: Alibaba Group Holdings, Visa, and Axon Enterprise.



Alibaba Group Holdings (NYSE: BABA)

Alibaba is a Chinese tech giant that generates the bulk of its revenue within China. This geographic focus insulates it from direct impacts of U.S. tariffs, making it a relatively safe bet in the current trade war environment. Of the $38.4 billion in revenue Alibaba generated in the last three months of 2024, only $5.2 billion came from its international digital commerce group. This means that its core business is heavily focused on the Chinese market, which is expected to grow by around 5% this year due to stimulus measures implemented by the Chinese government.

Alibaba's stock is trading at just 19 times its trailing earnings, making it an attractive option for growth investors. The company's strong position in the Chinese e-commerce market, combined with its low valuation, positions it well to benefit from economic stimulus measures. Additionally, Alibaba's focus on the Chinese market, which is expected to grow by 5% this year, makes it a relatively safe investment despite the ongoing trade tensions with the U.S.

Visa (NYSE: V)

Visa is a credit card company that benefits from both domestic and international spending. During the last three months of 2024, Visa's net revenue increased by 10%, with cross-border volumes up 16% year over year. The company generates fantastic profit margins of more than 50%, providing a substantial buffer to post strong earnings even if costs rise. Visa's business model is resilient to trade wars because consumers may rely more heavily on their credit cards to fund purchases, even in worsening economic conditions.

The stock trades at 35 times its trailing earnings, which is expensive but arguably warranted given Visa's solid margins and strong leadership position in its industry. Visa's ability to generate consistent revenue and profits, regardless of macroeconomic factors, makes it a relatively safe investment in the current market environment.

Axon Enterprise (NASDAQ: AXON)

Axon Enterprise is a company that specializes in law enforcement technology, including body cameras, sensors, tasers, and software solutions. Its sales have more than doubled in just three years, growing from $863 million in 2021 to just under $2.1 billion this past year. Axon's business could benefit from increased demand due to President Trump's tough stance on law enforcement. The company is also profitable, and as it continues to scale, its bottom line should improve, potentially attracting more value-oriented investors.

Axon trades at 110 times its trailing earnings, which is high but could decrease as the company's earnings grow. The company's focus on law enforcement technology, which is less directly affected by trade wars, makes it a relatively safe investment in the current market environment.

Conclusion

In summary, Alibaba Group Holdings, Visa, and Axon Enterprise are three relatively safe stocks to consider in the current market environment. Alibaba's focus on the Chinese market, Visa's resilient business model, and Axon's law enforcement technology make them well-positioned to weather the storm of tariffs and trade wars. While no stock is completely immune to market fluctuations, these companies offer a degree of stability and growth potential that makes them attractive options for investors looking to navigate the current market climate.