Navigating Volatility: The Resilient Growth Stocks to Bet On Now

As trade tensions simmer and central banks teeter between easing and tightening, investors are grappling with a market defined by uncertainty. With tariff deadlines looming and the Federal Reserve's inflation targets still in flux, the search for growth stocks that can weather volatility has never been more urgent. Drawing on expert insights from Wealth Enhancement's Market Movers series, we identify companies in healthcare and technology—sectors with structural tailwinds—that offer sustainable valuations amid a stormy macro backdrop.

Healthcare: A Fortress of Resilience

The healthcare sector has long been a haven in downturns, and today's environment is no exception. Aging populations, rising healthcare costs, and the persistent demand for life-saving treatments make this sector a natural growth engine. Wealth Enhancement's analysts highlight Pfizer (PFE) as a standout, trading at 40% below its fair value and benefiting from a robust pipeline of oncology drugs and mRNA-based therapies. The company's global scale and R&D prowess—bolstered by pandemic-era innovations—position it to outperform even as trade wars disrupt supply chains.

Another key pick is Thermo Fisher Scientific (TMO), a leader in life science tools and diagnostics. Its 33% undervaluation reflects a market underestimating its dominance in critical areas like lab equipment and biopharma testing. The firm's global reach and recurring revenue streams make it a bulwark against macroeconomic headwinds.

West Pharmaceutical Services (WST), a specialist in drug delivery systems, rounds out the healthcare trio. Its 28% undervaluation belies its 70% market share in elastomer components for biologics—a field booming as GLP-1 drugs and targeted therapies gain traction.

Technology: Riding the Innovation Wave

While trade tensions threaten sectors like automotive and industrials, technology companies are proving their adaptability. The semiconductor sector, in particular, is a growth machine, fueled by AI infrastructure spending and defense contracts.

Fidelity Select Semiconductors Portfolio (FSELX), up over 30% year-to-date, captures this momentum. Its holdings in NVIDIA and Broadcom reflect the demand for chips that power everything from data centers to autonomous vehicles.

In Asia, Delton Technology (Guangzhou)—a leader in printed circuit boards—exemplifies the sector's resilience. With 20.6% annual revenue growth, it's capitalizing on the shift toward high-margin, advanced electronics. Meanwhile, Japan's Money Forward, Inc., with 18.8% revenue growth, is leveraging fintech's rise in a cash-strapped economy.

The Case for Caution—and Opportunity

Even as these sectors shine, risks loom large. The Federal Reserve's potential rate cuts hinge on inflation data, and tariff negotiations could yet disrupt supply chains. Wealth Enhancement's advice? Diversify, discipline, and avoid knee-jerk reactions.

• Avoid Overconcentration: The S&P 500's top 10 stocks now account for 38% of its value—a vulnerability if mega-caps stumble.
• Focus on Moats: Wide economic moats (e.g., Pfizer's drug pipeline, TMO's lab dominance) insulate companies from margin pressures.
• Watch the G20: Trade talks in mid-July could ease tariff fears, but geopolitical risks like the Iran-Israel conflict remain wildcards.

Actionable Picks for 2025

1. Pfizer (PFE): Undervalued at $42/share, with a pipeline of therapies targeting $200B+ markets.
2. Thermo Fisher Scientific (TMO): Leverage its undervalued position in diagnostics and lab equipment.
3. West Pharmaceutical Services (WST): A play on the biologics boom, with pricing power in specialized components.
4. Fidelity Select Semiconductors (FSELX): Access to chip leaders driving AI and cloud infrastructure.
5. Money Forward, Inc.: Fintech's rise in Japan, with a 93% earnings growth outlook.

Conclusion: The Long Game Wins

In a market where short-term volatility obscures long-term trends, the best defense is a portfolio anchored in companies with cash flow discipline, innovative pipelines, and global scale. Healthcare and tech, for all their risks, offer a rare combination of growth and resilience. As Wealth Enhancement's analysts emphasize: Stay disciplined, avoid overreacting to noise, and let the market's fundamentals guide your choices.

In the end, the companies that thrive won't just survive tariffs or rate hikes—they'll turn these headwinds into opportunities.