3 Stocks to Buy Hand Over Fist in the Tariff-Fueled Market Downturn

The recent imposition of tariffs by President Trump has sent shockwaves through the stock market, causing significant volatility and uncertainty. The S&P 500 has fallen into correction territory, and the Nasdaq has entered a bear market, down by more than 20% from its recent highs. While many sectors are feeling the pinch, there are still opportunities for investors to find safe havens and even profit from the turmoil. Here are three stocks that are well-positioned to weather the storm and offer compelling value in the current market environment.

T-Mobile: A Domestic Powerhouse

T-Mobile (NASDAQ: TMUS) is one of the biggest wireless carriers in the United States, and its share of the market is growing. The company's business model, which focuses on domestic wireless phone and home internet connectivity, insulates it from the direct impacts of tariffs. T-Mobile's services are essential to consumers, and its business model allows it to generate significant free cash flow. In 2024, T-Mobile's free cash flow totaled $17 billion, up from $13.6 billion in 2023, and management forecasts $17.3 billion to $18 billion in free cash flow for 2025. This financial stability makes T-Mobile a reliable investment during volatile times.

T-Mobile's management has shown flexibility in deploying cash strategically, which can be beneficial in uncertain economic conditions. The company uses most of its cash to return capital to shareholders, primarily through share repurchases, but it also instituted a relatively small dividend in 2023 and plans to grow it by about 10% per year. Unlike its competitors AT&T and Verizon, T-Mobile isn't strapped with big piles of debt or committed to a big dividend, giving management more flexibility to deploy cash strategically.



CarMax: The Used Car King

CarMax (NYSE: KMX) is the largest used-vehicle dealer in the U.S. and has been operating since 1993. The company's business model, which includes transparency and a flat commission structure for salespeople, has given it a significant data advantage. This allows CarMax to acquire and manage inventory more efficiently than competitors, potentially leading to better pricing and continued growth in earnings. The tariffs imposed by President Trump are expected to drive up the price of new cars, which could increase demand for used cars as a lower-cost alternative. CarMax's long history gives it a significant data advantage as well, which can help it acquire and manage inventory more efficiently than competitors.

However, the tariffs do come with risk for CarMax. If the policies push the entire economy into a recession, consumers may be more likely to try to hold onto their cars longer instead of buying a "new to them" vehicle. That could offset any increases in demand from higher new car prices. That could prove challenging, as acquisition costs increase while the company maintains significant debt on its balance sheet. Investors can buy the stock for less than 20 times forward earnings as of now.

EPR Properties: Experiential Real Estate

EPR Properties (NYSE: EPR) is a real estate investment trust (REIT) that specializes in experiential real estate. The company leases properties to tenants who sell experiences rather than physical products, such as movie theaters, ski resorts, and waterparks. EPR's tenants are generally on long-term leases, ensuring stable cash flow. The company currently has a 7.6% yield, which it pays in monthly installments, and the stock trades for about eight times 2025 estimates for funds from operations (FFO). The market turbulence caused by tariffs is also leading to falling interest rates, which could help EPR access growth capital at a more reasonable cost.

EPR Properties is a compelling investment opportunity for investors looking for stable cash flow and minimal tariff impact. The company's focus on experiential real estate and long-term leases ensures stable cash flow, making it a reliable investment during volatile times. With a 7.6% yield and a stock trading for about eight times 2025 estimates for FFO, EPR Properties is a well-positioned investment in the current market environment.

In conclusion, while the tariffs imposed by President Trump have caused significant volatility in the stock market, there are still opportunities for investors to find safe havens and even profit from the turmoil. T-Mobile, CarMax, and EPR Properties are three stocks that are well-positioned to weather the storm and offer compelling value in the current market environment. Investors should consider these stocks as potential additions to their portfolios during this period of uncertainty.