Happy Sunday to everyone on The Street. 

It’s been a tariff-ying few weeks. So here’s a fun fact to lighten the mood. From 1790 to 1860, tariffs accounted for a whopping 90% of federal revenue.

Of course, this was all before the federal income tax was established in 1913. If Trump wants to scrap that, I’d say he can tariff away to his heart’s content.

Evermore Tariffs

Evercore ISI's Trade War Playbook

Tariff tensions continue to dominate the news and drive stock market swings.

This week, President Trump pushed ahead with sweeping tariffs on imports from Canada, Mexico, and China. And when he subsequently extended exemptions to certain categories of goods, it only served to intensify the sense of uncertainty. 

For those unsure of how to navigate these choppy waters, Evercore ISI $EVR ( ▼ 2.74% ) picked out several "trade war heroes” — low-volatility Russell 3000 stocks that outperformed in February and did well during President Trump's first term.

Senior managing director Julian Emanuel named almost 20 stocks that could come out ahead. Here are a few of the highlights.

On the Defense

The investment firm sees particular potential for the healthcare and defense sectors.

• Healthcare: 2025's top-performing sector in the S&P 500 so far, healthcare stocks are often a go-to defensive hedge. In particular, Evercore advised investors to check out AbbVie $ABBV ( ▲ 1.27% ) , which just entered the weight-loss market.

• Defense: Concerns over cuts in defense spending have hit stocks like Booz Allen Hamilton $BAH ( ▼ 0.55% ) and Lockheed Martin $EMT ( 0.0% ) this year. However, defense companies aren't as tied to the wider market as other stocks, making them a potential trade war play.

Citi $C ( ▼ 2.12% ) is also especially bullish on defense companies. It believes there's an opportunity buy the dip, particularly as defense spending in Europe is likely to pick up.

Apple of Evercore's ISI

One specific stock Evercore ISI has its eye on is Apple $AAPL ( ▼ 2.66% ) .

Emanuel says the tech giant is a strong defensive pick among tech stocks. He noted that Apple outperformed during similar tariff uncertainties seven years ago. And it is trading down almost 5% YTD, potentially making for an attractive entry point.

Melius Research's Ben Reitzes agrees. He believes that Apple is well-positioned to benefit from lower computing costs and increased AI adoption. 

Evercore ISI warns investors to prepare for volatility in the short term. However, it thinks the S&P 500 could still end the year on a positive note. Right now, uncertainty is the only certainty.

Sponsored by Cadiz

You Can Lead an Investor To Water…

The stock market is looking drier than a desert these days. But investors might just find an oasis in Cadiz, Inc. (NASDAQ: CDZI).

Cadiz is building the Southwest's largest water pipeline, the Mojave Groundwater Bank Project. It aims to leverage its 45,000 acres of land in California and 2.5 million acre-feet of water supply to increase clean water access where it is needed the most.

The project made headlines late last year when a local tribe announced plans to invest up to $50 million in it. This week, it did again, following a separate investment of up to $175 million from a lead equity investor.

According to CEO Susan Kennedy, the investment is the key for the pipeline to become “operational on an aggressive schedule”. In other words, Cadiz is on the move toward its full potential — and moving quickly.

Institutional and private equity investors are in on Cadiz. Will you join them? You know what they say. You can lead an investor to water, but you can’t make them drink.

More Than a Spear Carrier

Bad Month or Buying Opportunity?

HVAC company Carrier Global $CARR ( ▼ 3.56% ) is in the red on the year. The recent pullback in the stock price follows President Trump’s 25% tariff on goods from Mexico, a key market for Carrier.

But JPMorgan $JPM ( ▼ 2.12% ) believes it’s far from a bit player in the space. In fact, the bank says Carrier is now trading at attractive levels after its recent underperformance.

JPM upgraded the stock to Overweight from Neutral and raised its price target to $78, implying almost 16% upside from current levels.

Strong Fundamentals, Attractive Valuation

Analyst Stephen Tusa sees this as a good buying opportunity, noting that Carrier’s valuation has now fallen well below HVAC peers.

Despite ongoing uncertainty in the HVAC sector, Tusa believes Carrier’s forward guidance is achievable, suggesting the worst of the downward revisions may be over.

Carrier’s valuation appears especially attractive on a sum-of-the-parts basis, according to Tusa. He also forecasts a market correction that will help close the valuation gap between Carrier and its competitors.

Wall Street’s Confidence Grows

Despite concerns about tariffs on Mexican imports, Tusa remains confident in the company’s ability to mitigate risks through price adjustments and supply chain restructuring if necessary.

A slim majority of analysts covering the stock share Tusa’s bullishness. According to LSEG data, 15 out of 26 analysts rate Carrier as a Buy or Strong Buy, signaling strong confidence in its future growth prospects, despite recent headwinds.

The consensus 12-month price target is higher than JPM’s: nearly $81. With tariffs up in the air, it could mean tough times ahead for companies reliant on imports. But Wall Street appears confident Carrier can carry the day.

Together With RYSE

Mr. Wonderful Lost Out on $400 Million… Will You?

The Sharks passed on Ring before it sold for $1.2 billion to Amazon. Now, there’s another smart home company catching investors’ attention.

Meet RYSE—a leader in smart shade automation with $10M+ in revenue, 200% year-over-year growth, and distribution in 127 Best Buy stores (with Home Depot launching in 2025).

RYSE’s patented technology is making waves in a booming market—and you can invest at 

$1.90/share before their next growth phase.

Hope for YETI, Yet

Not So Abominable

You’d be forgiven for not believing in the legendary yeti, or the so-called “abominable snowman”. But according to Barron’s, investors should have no doubts about the company named after it.

YETI Holdings $YETI ( ▼ 2.53% ) , which specializes in luxury outdoor products like its rugged travel mugs, soared after its 2018 IPO. But it has since struggled, with its stock down 8% over the past 12 months.

That hasn’t dissuaded Jefferies (JEF) analyst Randal Konik from rating the company a Buy. His $55 price target represents, coincidentally, a nearly 55% increase on Friday's close. He thinks it's only a matter of time before the market realizes YETI is undervalued.

Mug Shot

In addition to strong financials, analysts think YETI's growing product range could drive growth. In addition to its popular drinkware, the company sells premium coolers, coffee makers, and cookware.

On top of that, YETI recently acquired specialist backpack maker Mystery Ranch. Its limited-edition Bozeman backpack, released in December, quickly sold out.

Plus, YETI continues to expand globally. In its latest earnings call, it reported strong performance in the UK and Germany, as well as a Japanese launch.

YETI or Not

To be fair, YETI is not alone on the mountaintop. Competitors Stanley $PMI ( 0.0% ) and Owala are taking market share, particularly in drinkware.

Additionally, YETI uses some Chinese manufacturing, so tariffs could be an issue. However, it is already taking steps to shift its supply chain away from the Asian nation.

Investor opinion is mixed. According to Barron's, 10 of 17 analysts covering the stock rate it a Hold. 6 have it at a Buy or Overweight, while 1 ranks it a Sell.

If you're wondering whether the best is YETI to come, a lot depends on whether the company can deliver as it expands its product range and geographical reach.

Last Week’s Poll Results

Are you bullish or bearish on Comcast (CMCSA) over the next 12 months?

🟨🟨🟨🟨⬜️⬜️ 🐂 Bullish

🟩🟩🟩🟩🟩🟩 🐻 Bearish

And, in response, you said

• 🐻 Bearish — 

  • “Their customer service is the worst. Will lead to even more cord-cutting. Eventually will hurt stock price.”

  • “I'm canceling my cable in the next 45 days. They don't care.”

Are you bullish or bearish on Metsera (MTSR) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨🟨⬜️⬜️ 🐻 Bearish

Are you bullish or bearish on Nike (NKE) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨🟨⬜️⬜️ 🐻 Bearish