Cardinal Health(CAH) ZACKS·2025-04-03 14:20Economic Context - President Trump announced a "national economic emergency" and introduced a baseline 10% tariff on all countries to address a $1.2 trillion trade deficit, effective April 5 [1][5] - The tariffs are expected to escalate tensions and potentially lead to a global trade war, impacting market stability [8] Market Reaction - Following the announcement, Dow futures dropped over 800 points (2%), while S&P 500 futures and Nasdaq 100 futures fell by 2.7% and 3.6% respectively, indicating market apprehension [2] - Prior to the announcement, stocks had rallied as investors were optimistic about the tariffs being manageable [7] Investment Recommendations - In light of the market turmoil, it is advisable to invest in defensive sectors such as utilities, consumer staples, and healthcare [3] - Recommended stocks include: - Southwest Gas Holdings, Inc. (SWX): Expected earnings growth rate of 17.1%, Zacks Rank 2, beta of 0.50, dividend yield of 3.45% [10] - CMS Energy Corporation (CMS): Expected earnings growth rate of 7.8%, Zacks Rank 2, beta of 0.34, dividend yield of 2.89% [12] - Molson Coors Beverage Company (TAP): Expected earnings growth rate of 6.2%, Zacks Rank 2, beta of 0.69, dividend yield of 3.07% [14] - Sony Group Corporation (SONY): Expected earnings growth rate of 11.9%, Zacks Rank 1, beta of 0.94, dividend yield of 1.84% [16] - Cardinal Health, Inc. (CAH): Expected earnings growth rate of 5.4%, Zacks Rank 2, beta of 0.61, dividend yield of 1.47% [18] Stock Characteristics - The recommended stocks are characterized as low-beta (beta greater than 0 but less than 1), which typically indicates lower volatility compared to the market [4]