3 Stocks With Upgraded Broker Ratings for Strong Returns Amid Trade War Uncertainty

As global trade tensions and inflationary pressures continue to roil markets, investors are seeking resilient stocks capable of weathering macroeconomic storms. Three companies—RELX PLC (RELX), Sprouts Farmers Market (SFM), and Ralph Lauren (RL)—stand out for their upgraded broker ratings, robust earnings growth, and alignment with defensive or inflation-sensitive sectors. Their strong fundamentals, liquidity, and favorable valuation metrics make them compelling picks for portfolios navigating trade war uncertainty.

RELX PLC (RELX): Data Analytics as a Safe Harbor

RELX, the global information and analytics giant, has seen an 11.1% upward revision in broker ratings over the past four weeks, maintaining its Zacks Rank #2 (Buy). With earnings growth projected at 9.1% YoY for 2025, the company's diversified segments—Risk, Scientific/Technical/Medical, Legal, and Exhibitions—provide a shield against sector-specific volatility.

Why It's a Pick:
- Defensive Sector Exposure: Demand for data-driven decision tools remains stable, even in downturns.
- Credit Strength: S&P's recent upgrade to A- underscores its robust balance sheet and free cash flow.
- Valuation: A trailing P/E of 21.5 aligns with growth expectations, while its VGM Score of A reflects strong momentum.

Sprouts Farmers Market (SFM): Thriving in Inflationary Markets

Sprouts Farmers Market has earned a 7.1% broker rating upgrade and a Zacks Rank #2, backed by 24.3% YoY earnings growth in 2025. The everyday healthy grocery retailer benefits from a secular shift toward affordable wellness, a trend that's accelerated during inflationary periods.

Why It's a Pick:
- Inflation Hedge: Its focus on fresh produce and private-label goods allows it to maintain margins despite rising costs.
- Operational Excellence: Same-store sales growth of 4.5–6.5% and net sales targets of 10.5–12.5% highlight execution strength.
- Valuation: A PEG ratio of 1.8 signals growth at a reasonable price, supported by a VGM Score of A.

Ralph Lauren (RL): Premium Brand Resilience

Ralph Lauren's 5.6% broker upgrade and Zacks Rank #2 reflect confidence in its 13.5% YoY earnings growth for fiscal 2026. The premium lifestyle brand's pricing power and global appeal make it a standout in a slowing apparel market.

Why It's a Pick:
- Defensive Pricing: Luxury goods often retain demand even in economic downturns.
- Strategic Focus: Expansion into e-commerce and international markets (e.g., Asia-Pacific) drives long-term growth.
- Valuation: A P/E of 18.9 and VGM Score B balance growth with affordability.

Screening Criteria: Why These Stocks Succeed

All three companies meet Zacks' stringent criteria for volatile markets:
1. Zacks Rank #2: Signals strong short-term momentum and analyst consensus.
2. VGM Scores (A/B): Combines valuation, growth, and momentum into a single metric.
3. Liquidity: Average daily volume exceeds 100,000 shares, ensuring ease of entry/exit.

Action Plan for Investors

The trade war and inflationary environment favor companies with defensive business models, pricing power, and strong fundamentals. RELX, SFM, and RL offer:
- Sector Resilience: Analytics, everyday essentials, and luxury goods are less cyclical.
- Valuation Safety: PEG ratios and VGM Scores align growth with affordability.
- Liquidity: High trading volumes reduce execution risk.

Act Now: Use tools like Zacks' Research Wizard to backtest strategies and monitor these stocks. With broker upgrades signaling optimism and macro risks still elevated, these picks are positioned to deliver outperformance.

In a world of uncertainty, these three stocks offer clarity—a rare commodity in today's markets.