3 Safe Stocks to Keep During Tariff Uncertainty

Core Viewpoint - The S&P 500 index has experienced significant volatility due to President Trump's new trade tariffs, leading to challenges in forecasting future GDP and further market fluctuations in the coming months [1] Group 1: Market Volatility and Investment Safety - Despite market volatility, there are fundamental arguments for safety in the stock market, particularly through businesses with predictable and stable cash flows [2] - Companies like T-Mobile US Inc., Spotify Technology, and Netflix Inc. are highlighted as potential safe investments due to their stable business models [3] Group 2: T-Mobile US Inc. - T-Mobile's 12-month stock price forecast is $256.80, indicating a -2.22% downside from the current price of $262.64, with a moderate buy rating based on 23 analyst ratings [4] - T-Mobile commands a high price-to-book (P/B) ratio of 4.8x, significantly above the communication sector's average of 1.8x, reflecting expectations of outperformance [4][5] - The subscription-based model of T-Mobile provides predictable cash flows, enhancing its stability and attractiveness to investors [6] - Institutional investors, such as GAMMA Investing, initiated a stake of $814.4 million in T-Mobile stock, signaling confidence in the company's future [7] Group 3: Spotify Technology - Spotify's 12-month stock price forecast is $563.41, suggesting a 3.00% upside from the current price of $546.98, with a moderate buy rating based on 29 analyst ratings [9] - Analysts from Wells Fargo have reiterated an Overweight rating for Spotify, with a valuation target of up to $740 per share, indicating a potential 34% upside [10] - GAMMA Investing allocated $394.8 million into Spotify, further supporting its bullish outlook [12] Group 4: Netflix Inc. - Netflix's 12-month stock price forecast is $1,017.31, representing a 9.24% upside from the current price of $931.28, with a moderate buy rating based on 37 analyst ratings [13] - Analysts project earnings per share (EPS) of $6.28 for Q3 2025, a 49.5% increase from the current EPS of $4.20, indicating strong growth potential [14] - Netflix has shown resilience during economic uncertainty, outperforming the broader S&P 500 index [15]